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Market Responses to Climate Stress: Rice in Java in the 1930s

  • Pierre van der Eng

    ()

Do markets in less-developed countries abate consequences of climate stress? Rainfall is an important factor in rice production in Indonesia. This paper uses changes in regional rice prices across the 19 residencies in less-developed Java to assess how rice markets responded to variations in rainfall during 1935-1940. It finds that rice markets were highly integrated across Java. The El Niño-induced episodes of lower than usual rainfall in 1935 and 1940 did not have a negative effect on levels and variations in regional rice prices, nor did they have adverse consequences for the supply of rice. Adaptive responses of firms specialising in the trade of rice are likely to have mitigated regional deficiencies in food production caused by climate stress.

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File URL: http://cbe.anu.edu.au/researchpapers/econ/wp509.pdf
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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2009-509.

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Length: 23 Pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:acb:cbeeco:2009-509
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  1. Peter H. Lindert, 2000. "Shifting Ground: The Changing Agricultural Soils of China and Indonesia," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262122278, June.
  2. Van Zanden, Jan Luiten, 2004. "On the Efficiency of Markets for Agricultural Products: Rice Prices and Capital Markets in Java, 1823 1853," The Journal of Economic History, Cambridge University Press, vol. 64(04), pages 1028-1055, December.
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