Food Price Spikes and Strategic Interactions between the Public and Private Sectors: Market Failures or Governance Failures
When food prices shoot over import parity, this often leads to social and political unrest and even the toppling of governments. If markets behaved efficiently and in the absence of trade barriers, food prices should not exceed the price in world markets plus the cost of importing it to domestic markets (i.e., import parity). However, food prices routinely soar above import parity in several countries of East and Southern Africa, causing widespread hunger and asset depletion among the poor.
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| Date of creation: | Oct 2009 |
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| Handle: | RePEc:ags:midcwp:97142 |
| Contact details of provider: | Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039 Phone: (517) 355-4563 Fax: (517) 432-1800 Web page: http://www.aec.msu.edu/agecon/ Email: More information through EDIRC
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