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Shock transmission in the International Food Trade Network. A Data-driven Analysis

Author

Listed:
  • Tiziano Distefano

    () (Department of Environmental, Land and Infrastructure Engineering, Politecnico di Torino, Italy)

  • Francesco Laio

    () (Department of Environmental, Land and Infrastructure Engineering, Politecnico di Torino, Italy)

  • Luca Ridolfi

    () (Department of Environmental, Land and Infrastructure Engineering, Politecnico di Torino, Italy)

  • Stefano Schiavo

    () (Department of Economics and Management, Università di Trento, Italy; Observatoire Français des Conjonctures Economiques - DRIC, France.)

Abstract

Food Security is a longstanding concern worldwide. The expansion of global food markets brings benefits but also risks, such as shock transmission within the global network of trade relations. We focus on this last issue, from an empirical point of view, by analysing the di usion of trade shocks - defined as relevant drops in exported quantities - during the period 1986 - 2011, for four major staples (wheat, maize, rice, and soybeans) both at country level and global scale. We find that: (i) income per capita of importing countries matters in shock propagation; (ii) developing countries tend to absorb most of the negative export variation (i.e., the trade shock), and (iii) global food prices and real (tonnes) uxes of commodities are only weakly correlated, meaning that a quantity-based investigation provides additional information with respect to a price-based analysis. This work o ers a novel framework, complementary to the price-based literature, for the definition and measurement of the propagation of international food shocks.

Suggested Citation

  • Tiziano Distefano & Francesco Laio & Luca Ridolfi & Stefano Schiavo, 2017. "Shock transmission in the International Food Trade Network. A Data-driven Analysis," SEEDS Working Papers 0617, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2017.
  • Handle: RePEc:srt:wpaper:0617
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    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/0617.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Tiziano Distefano & Guido Chiarotti & Francesco Laio & Luca Ridolfi, 2018. "Spatial distribution of the international food prices: unexpected randomness and heterogeneity," SEEDS Working Papers 0118, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2018.

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    Keywords

    food crisis; shock propagation; food security; international grain trade;

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