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The impacts of the global food and financial crises on household food security and economic well-being: evidence from Bangladesh

Author

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  • Sonia, Akter
  • Syed Abul, Basher

Abstract

This paper presents the first household-level study to examine the combined impacts of the global food and financial crises on household food security and economic well-being in a developing country. Using longitudinal survey data of 1,800 rural households from 12 districts of Bangladesh over the period 2007–2010, we estimated a three-stage hierarchical logit model to identify the key sources of household food insecurity. A difference-in-difference estimator was then employed to compare pre- and post-crises expenditure for those households who experienced acute food shortages and those who managed to avoid the worst impacts of the crises. On the basis of our results we conclude that: (1) the soaring food prices of 2007–2008 unequivocally aggravated food insecurity in the rural areas of Bangladesh in 2008; (2) there was some weak evidence to suggest that the global economic downturn, which followed the global food crisis, contributed towards worsening food insecurity in 2009; (3) the adverse impacts of these crises appeared to have faded over time due to labor and commodity market adjustments, regional economic growth, and domestic policy responses, leaving no profound, long-lasting impacts on households’ economic well-being; and (4) although the immediate adverse consequences of rising food prices were borne disproportionately by the poor and farming communities, the longer term consequences were distributed more evenly across the rich and poor and, in general, were favorable for the farming community.

Suggested Citation

  • Sonia, Akter & Syed Abul, Basher, 2013. "The impacts of the global food and financial crises on household food security and economic well-being: evidence from Bangladesh," MPRA Paper 47859, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:47859
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    References listed on IDEAS

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    1. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    2. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    3. Verpoorten, Marijke & Arora, Abhimanyu & Stoop, Nik & Swinnen, Johan, 2013. "Self-reported food insecurity in Africa during the food price crisis," Food Policy, Elsevier, vol. 39(C), pages 51-63.
    4. Mauro Migotto & Benjamin Davis & Gero Carletto & Kathleen Beegle, 2005. "Measuring Food Security Using Respondents’ Perception of Food Consumption Adequacy," Working Papers 05-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    5. Derek D. Headey, 2013. "The Impact of the Global Food Crisis on Self-Assessed Food Security," World Bank Economic Review, World Bank Group, vol. 27(1), pages 1-27.
    6. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    7. Rafael E. de Hoyos & Denis Medvedev, 2011. "Poverty Effects of Higher Food Prices: A Global Perspective," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 387-402, August.
    8. Kenneth Harttgen & Stephan Klasen, "undated". "Analyzing Nutritional Impacts of Price and Income Related Shocks in Malawi and Uganda," UNDP Africa Policy Notes 2012-014, United Nations Development Programme, Regional Bureau for Africa.
    9. Raihan, Selim, 2013. "The Political Economy of Food Price Policy: the Case of Bangladesh," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).
    10. World Bank, 2011. "Migration and Remittances Factbook 2011 : Second Edition," World Bank Publications, The World Bank, number 2522, July.
    11. Debapriya Bhattacharya & Shouro Dasgupta & Dwitiya Jawher Neethi, 2012. "Assessing the Impact of the Global Economic and Financial Crisis on Bangladesh: An Intervention Analysis," CPD Working Paper 97, Centre for Policy Dialogue (CPD).
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    Cited by:

    1. Rita Motzigkeit Gonzalez, 2016. "Welfare effects of changed prices The “Tortilla Crisis" revisited," Working Papers 167, Bavarian Graduate Program in Economics (BGPE).
    2. Akhi, K. & Uddin, M. T. & Islam, M. M., 2016. "Food security assessment of NGO supported and own managed pond fish farmers of two districts in Bangladesh," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 13.
    3. Qing-Chang Lu & Junyi Zhang & Lingling Wu & A. B. M. Sertajur Rahman, 2016. "Job and residential location changes responding to floods and cyclones: an analysis based on a cross-nested logit model," Climatic Change, Springer, vol. 138(3), pages 453-469, October.
    4. repec:sos:sosjrn:180110 is not listed on IDEAS

    More about this item

    Keywords

    Food security; Food price shocks; financial crises; Discrete choice modeling; Household survey data; Economic welfare; Bangladesh;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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