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Food Prices and Political Instability

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  • Mr. Rabah Arezki
  • Markus Bruckner

Abstract

We examine the effects that variations in the international food prices have on democracy and intra-state conflict using panel data for over 120 countries during the period 1970-2007. Our main finding is that in Low Income Countries increases in the international food prices lead to a significant deterioration of democratic institutions and a significant increase in the incidence of anti-government demonstrations, riots, and civil conflict. In the High Income Countries variations in the international food prices have no significant effects on democratic institutions and measures of intra-state conflict. Our empirical results point to a significant externality of variations in international food prices on Low Income Countries' social and political stability.

Suggested Citation

  • Mr. Rabah Arezki & Markus Bruckner, 2011. "Food Prices and Political Instability," IMF Working Papers 2011/062, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/062
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    References listed on IDEAS

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    More about this item

    Keywords

    WP; food price; price index; country;
    All these keywords.

    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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