Download or read book Transmission of Global Food Prices to Domestic Prices in Developing Countries written by World Bank and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Transmission of international food prices to domestic prices is essential to pursue comparative-advantage-based, sustainable agricultural production, and to ensure domestic production responds to global food scarcity or surplus. (i) International prices are opportunity costs for most price-taking developing countries and are crucial in determining an efficient distribution of domestic resources. When the long-term trend of international prices is transmitted slowly and imperfectly to domestic markets, consumers and producers make decisions based on prices that do not represent their real social costs and benefits. There is strong empirical evidence from both developing and developed countries that any large, sustained deviation of domestic prices from world prices in either direction leads to substantially sub-optimal outcomes and slows the rate of economic growth; and (ii) as international food prices reflect global scarcity or surplus, their transmission to domestic prices can help improved the global responsiveness of the food system to shocks. The recent increase in the volatility of international food prices is, therefore, a big concern. These volatile and unpredictable prices may undermine incentives for farmers to respond to high price levels with the critical increase in production needed to bring food prices down. In practical terms, farmers decide what to plant and countries deciding when to import face uncertainty in the likely distribution of world food prices and greater consequences when using past price levels and distributions to guide current decisions. This uncertainty keeps food prices high for a longer period, leading to fundamental food security risks for consumers and governments. To achieve more efficient domestic price formation, policy actions need to focus on (i) strengthening the integration of local markets with international markets (through investments in infrastructure and market-oriented policies), especially local markets that are more volatile than international markets, (ii) reducing global food price volatility, including through more discipline on trade policy, and (iii) strengthening safety nets to rapidly and cost-effectively protect the poor and vulnerable from the food price spikes.
Download or read book Transmission of Global Food Prices to Domestic Prices in Developing Countries written by Weltbank and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Transmission of international food prices to domestic prices is essential to pursue comparative-advantage-based, sustainable agricultural production, and to ensure domestic production responds to global food scarcity or surplus. (i) International prices are opportunity costs for most price-taking developing countries and are crucial in determining an efficient distribution of domestic resources. When the long-term trend of international prices is transmitted slowly and imperfectly to domestic markets, consumers and producers make decisions based on prices that do not represent their real social costs and benefits. There is strong empirical evidence from both developing and developed countries that any large, sustained deviation of domestic prices from world prices in either direction leads to substantially sub-optimal outcomes and slows the rate of economic growth; and (ii) as international food prices reflect global scarcity or surplus, their transmission to domestic prices can help improved the global responsiveness of the food system to shocks. The recent increase in the volatility of international food prices is, therefore, a big concern. These volatile and unpredictable prices may undermine incentives for farmers to respond to high price levels with the critical increase in production needed to bring food prices down. In practical terms, farmers decide what to plant and countries deciding when to import face uncertainty in the likely distribution of world food prices and greater consequences when using past price levels and distributions to guide current decisions. This uncertainty keeps food prices high for a longer period, leading to fundamental food security risks for consumers and governments. To achieve more efficient domestic price formation, policy actions need to focus on (i) strengthening the integration of local markets with international markets (through investments in infrastructure and market-oriented policies), especially local markets that are more volatile than international markets, (ii) reducing global food price volatility, including through more discipline on trade policy, and (iii) strengthening safety nets to rapidly and cost-effectively protect the poor and vulnerable from the food price spikes.
Download or read book Trade Policy and Food Security written by Ian Gillson and published by World Bank Publications. This book was released on 2014-12-04 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increased trade integration holds considerable potential to stabilize food prices, boost returns to farmers, and reduce the prices faced by consumers. This book explores the effects of food price changes on economic welfare in developing countries, and how these can be mitigated through appropriate national policies at the border.
Download or read book Food Price Volatility and Its Implications for Food Security and Policy written by Matthias Kalkuhl and published by Springer. This book was released on 2016-04-12 with total page 620 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.
Download or read book How Strong Do Global Commodity Prices Influence Domestic Food Prices in Developing Countries A Global Price Transmission and Vulnerability Mapping Analysis written by Matthias Kalkuhl and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the transmission from global commodity to domestic food prices for a large set of countries. First, a theoretical model is developed to explain price transmission for different trade regimes. Drawing from the competitive storage model under rational expectations, it is shown that domestic prices can respond instantaneously to global prices even if no trade takes place but future trade is expected. Using a global database on food prices, we construct national and international grain price indices. With an autoregressive distributed lag model, we empirically detect countries in which food prices are influenced by global commodity prices, including futures prices. Mapping transmission elasticities with the size of the population below the poverty line which spends typically a large share of its income on food, we are able to estimate the size of vulnerable population. Our empirical analysis reveals that 90 percent of the global poor (income below 1.25$/day) live in countries where domestic food prices respond to international prices - but the extent of transmission varies substantially. For 360 million poor people, international prices transmit to their country at rates of 30 percent or higher within three months.
Download or read book Food Price Policy in an Era of Market Instability written by Per Pinstrup-Andersen and published by Oxford University Press (UK). This book was released on 2015 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since 2006, global food prices have fluctuated greatly around an increasing trend and price spikes were observed for key food commodities such as rice, wheat, and maize.
Download or read book The Source of Food Price Swings and Their Effect on Developing Economies written by Thilo Trost and published by GRIN Verlag. This book was released on 2012-03 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Essay from the year 2012 in the subject Economics - Monetary theory and policy, grade: 1,3, Zeppelin University Friedrichshafen, language: English, abstract: In the following short paper, I am going to evaluate the economic effects of food price swings on emerging and developing economies. In recent years, we witnessed enormous increases and volatilities in commodity and especially food prices. Concerns of starvation are therefore strengthening. These economies tend to have a high percentage of food in their standardized consumption basket, which means they spend more of their income on food in general. Since food is an essential good of living, the recent price developments over the past ten years are threatening the social stability of these economies as well as the well-being of their inhabitants. In contrast to developed economies, the population of these relatively "poor" economies is facing enormous problems feeding themselves and their children. This paper antends to give an answer to the extend of the pass-through effects of price increases to developing economies and the driving effects of those prices. In the first part of the paper I am going to give a short overview over recent price developments, then discuss the topic of influential factors on these prices, especially the extend which speculation has on aforementioned price in- and decreases. In the second part, I am going to eruate the pass-through effects of world food prices to developing economies as shown in the autumn study of the international monetary fund (hereinafter mentioned as IMF), namely what effect a 5% increase of food prices on international trade markets has on these economies, especially their output gap, and the foreign exchange value of the currency. The question to evaluate will not only be how price developments are created but also how they influence the economies and social stability of developing countries.
Download or read book Global Food Prices and Domestic Inflation written by Davide Furceri and published by International Monetary Fund. This book was released on 2015-06-24 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a broad brush look at the impact of fluctuations in global food prices on domestic inflation in a large group of countries. For advanced economies, we find that these fluctuations have played a significant role over the period from 1960 to the present, but the impact has declined over time and become less persistent. We also find that the more recent global food price shocks occurred in the 2000s had a much bigger impact on emerging than on advanced economies. This larger impact could reflect the larger share of food in the consumption baskets in emerging economies on average than in advanced economies, and less anchored inflation expectations in emerging economies than in advanced economies.
Download or read book Global food crises Monitoring and assessing impact to inform policy responses written by Todd Benson, Nicholas Minot, John Pender, Miguel Robles, Joachim von Braun and published by Intl Food Policy Res Inst. This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Strong upward trends and increased variability in global food prices over the past two years have led to concern that hunger and poverty will increase across the world.
Download or read book Anatomy of a Crisis The Causes and Consequences of Surging Food Prices written by Derek Headey and Shenggen Fan and published by Intl Food Policy Res Inst. This book was released on 2008 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Global Monitoring Report 2012 written by World Bank and published by World Bank Publications. This book was released on 2012-04-24 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: This year's report summarizes the short- and long-term impact of food prices on several MDGs, explores future trends, and review policy responses, from domestic policies such as social safety nets, nutritional programs and agricultural policies, to regional trade policies to support by the international community.
Download or read book Global Food Price Inflation and Developing Asia written by Asian Development Bank and published by Asian Development Bank. This book was released on 2011-03-01 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: The specter of high commodity prices has recently reemerged, with global food prices registering a new peak in February 2011, triggered mainly by production shortfalls due to bad weather. The 30% hike in international food prices has translated to an average domestic food price inflation in developing Asia of about 10%. This could push an additional 64.4 million Asians into poverty, or lead to a 1.9 percentage point increase in poverty incidence based on the $1.25-a-day poverty line. The frequency with which food price spikes have occurred in recent years suggests that short- and long-term solutions need to be implemented to secure food supplies for the world's growing population.
Download or read book Global Food Security Challenges for the Food and Agricultural System written by OECD and published by OECD Publishing. This book was released on 2013-06-19 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is concerned with how changes to the world’s food and agriculture system can contribute to improvements in global food security.
Download or read book Monetary Policy and Food Inflation in Emerging and Developing Economies written by Abdul-Aziz Iddrisu and published by Routledge. This book was released on 2021-11-23 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the impact of monetary policy and food price volatility and inflation in emerging and developing economies. The tendency for food price volatility to blot inflation forecasting accuracy, engender tail dynamics in the overall inflation trajectory and derail economic welfare is well known in the literature. The ability of monetary policy to exact stability in food prices, theoretically, has also been well espoused. The empirical evidence, however, is not only in short supply, but also the studies available have dwelt on approaches that underplay the volatile behaviour of food prices. This book focuses on inflation targeting in emerging economies such as Chile, Mexico, Turkey, Brazil, Hungary, Russia, Colombia, South Africa, Indonesia and Ghana, as these are economies with considerable proportion of the consumption basket occupied by food. The book provides the means to understand at first hand the correct way to model food inflation, account for the related policy responses to deviations either in the short or medium to long term, and in market conditions that are subject to excessive variability. Strong evidence is presented that captures deviations of food prices from their trend and the accompanying monetary policy effect in stabilizing such variabilities across distinct frequencies. The novel approach in this book addresses the burgeoning puzzles of asymmetry in monetary policy effect on food prices at high, medium and low episodes of food inflation. In doing so, this book presents a powerful tool for researchers interested in understanding not just the transmission mechanism, but also the magnitudes involved, and to policymakers whose existing tools have failed them. Future studies will do well to deepen the evidence and seek new grounds to which the phenomenon manifests beyond and below emerging markets. This book will be of great interest to students, scholars and policymakers involved in agricultural economics, financial economics, food security and sustainable development.
Download or read book What Price Food written by Paul Streeten and published by . This book was released on 1988 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Food Prices and Rural Poverty written by Centre for Economic Policy Research and published by CEPR. This book was released on 2010-11-15 with total page 350 pages. Available in PDF, EPUB and Kindle. Book excerpt: The impact of price developments on world food markets on poor households in developing countries is an important policy question. Who gains and who loses from agricultural commodity price changes depends on the specific circumstances of households, and, at the level of nations, on the structure of production and trade. The contributions to this volume review trends in international prices and trade patterns of key food commodities, and assess the incidence of food price changes in a number of developing countries using household level data on sources of incomes and consumption patterns.
Download or read book Global Food Price Shocks and Poor People written by Marc J. Cohen and published by Routledge. This book was released on 2014-06-11 with total page 339 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the effects of high and volatile food prices during 2007-08 on low-income farmers and consumers in developing, transition, and industrialized countries. Previous studies of this crisis have mostly used models to estimate the likely impacts. This volume includes actual evidence from the field as to how higher prices affected access to food and farm income among poor people. In addition to country and regional case studies, the book presents discussions of cross-cutting themes, including gender, risk management, violence, the importance of subsistence farming as a coping strategy, and the role of governments and markets in addressing higher prices. With 2011 witnessing an unprecedentedly high level of food prices, the findings and policy recommendations presented here should prove useful to both scholars and policy makers in understanding the causes and consequences, as well as the policies needed to ensure food security in light of the skyrocketing cost of food. This book was published as a special double issue of Development in Practice.
