Rice Trade and Price Volatility: Implications on ASEAN and Global Food Security
This paper highlights the thinness of rice trade relative to wheat and maize, and the contrasting price volatility and tradability relations for wheat and maize, which display a positive correlation, and for rice, which show an inverse relation. The paper focuses on Southeast Asia, which hosts the world’s biggest rice exporters and rice importers. Using the Granger causality tests to determine correlation, the analysis concludes that very low global trading activity in rice that tends to self-perpetuate its dampening effect on trade does not cause extreme rice price volatility in the region, but the other way around. Rice-importing countries appear to resort to self-sufficiency measures as insurance to compensate for the high risks of unreliable rice supply and unaffordable rice prices. What would it take for countries to regain their confidence in external rice trade? The Association of Southeast Asian Nations Integrated Food Security Program provides a menu of policies for reducing and managing the chances of excessive rice price volatility.
|Date of creation:||02 Sep 2013|
|Contact details of provider:|| Postal: P.O. Box 789, Manila|
Fax: (63-2) 636-2648
Web page: http://www.adb.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sushil Bikhchandani & Sunil Sharma, 2001. "Herd Behavior in Financial Markets," IMF Staff Papers, Palgrave Macmillan, vol. 47(3), pages 1-1.
- Bollerslev, Tim, 1986.
"Generalized autoregressive conditional heteroskedasticity,"
Journal of Econometrics,
Elsevier, vol. 31(3), pages 307-327, April.
- Tim Bollerslev, 1986. "Generalized autoregressive conditional heteroskedasticity," EERI Research Paper Series EERI RP 1986/01, Economics and Econometrics Research Institute (EERI), Brussels.
- Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0368. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Susan M. Torres)
If references are entirely missing, you can add them using this form.