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Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda

Author

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  • Ole Boysen

    (Institute for International Integration Studies, Trinity College Dublin
    Department of Economics, Trinity College Dublin)

Abstract

How does an increase in food prices at the border impact poverty in Uganda given the strong spatial heterogeneity of the country and its limited domestic transportation and communication networks? Recently, a number of studies on the impact of international food prices on poverty in developing countries have been published. However, the role of spatial price transmission in this context remains largely unexplored. This paper targets that niche. We assess the spatial variability and transmission of prices through the analysis of time series and household data using descriptive statistics and regression methods. Subsequently, we apply the findings in a simulation experiment to determine the first-order poverty impacts of a hypothetical 50% increase in border prices for food under the assumption of imperfect spatial price transmission. The poverty results show impacts substantially different from those of a perfect price transmission scenario and also display strong regional differentiation.

Suggested Citation

  • Ole Boysen, 2009. "Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp306, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp306
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    References listed on IDEAS

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    5. Engle, R. F. & Granger, C. W. J. (ed.), 1991. "Long-Run Economic Relationships: Readings in Cointegration," OUP Catalogue, Oxford University Press, number 9780198283393.
    6. Boysen, Ole & Matthews, Alan, 2008. "Poverty Impacts of an Economic Partnership Agreement between Uganda and the EU," Conference papers 331706, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
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    9. B. L. Gardner & G. C. Rausser (ed.), 2001. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 1, number 1.
    10. Shahidur Rashid, 2004. "Spatial Integration of Maize Markets in Post-liberalised Uganda," Journal of African Economies, Centre for the Study of African Economies, vol. 13(1), pages 102-133, March.
    11. Ekaterina Krivonos & Marcelo Olarreaga, 2009. "Sugar Prices, Labor Income, and Poverty in Brazil," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 95-128, January.
    12. Christine Moser & Christopher Barrett & Bart Minten, 2009. "Spatial integration at multiple scales: rice markets in Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 281-294, May.
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    Cited by:

    1. Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2016. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(3), pages 377-402, June.
    2. Efobi Uchenna, 2019. "Cross-Border Trade and Infrastructure: A Gender Analysis of Welfare Outcomes in Nigeria," SAGE Open, , vol. 9(2), pages 21582440198, April.
    3. Efobi Uchenna, 2016. "The Reconstruction of the Border Roads and Household Welfare in Nigeria: A Gender Study," Working Papers of the African Governance and Development Institute. 16/025, African Governance and Development Institute..

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    More about this item

    Keywords

    Uganda; food prices; poverty; spatial price transmission;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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