scholarly journals A Second Look at the 2007-08 Food Price Crisis: Considering the Impact of Endogenous Dynamics on Food Prices

2012 ◽  
Author(s):  
Luigi Russi
Keyword(s):  
Food Prices ◽  
Food Price ◽  
Second Look ◽  
The Impact

scholarly journals THE IMPACT OF THE WORLD FOOD PRICE INDEX ON SOME EAST-EUROPEAN ECONOMIES

2018 ◽  
Vol 19 (2) ◽  
pp. 268-287
Author(s):  
Corina Saman ◽  
Cecilia Alexandri
Keyword(s):  
Price Volatility ◽  
Agricultural Trade ◽  
Food Prices ◽  
Food Price ◽  
Long Run ◽  
Short Run ◽  
Positive Shock ◽  
Macroeconomic Implications ◽  
The Impact ◽  
Global Food

This paper deals with the dynamic response of exchange rates, inflation and agricultural foreign trade in Bulgaria, Poland and Romania to global food prices. We employ time-varying VARs with stochastic volatility to estimate the behaviour of these macroeconomic variables over the 2001M1–2015M12 period. The original contribution of this paper is that it captures the time variation and nonlinearities of the relationship between variables taking into account food price volatility and its macroeconomic implications. The main findings of the paper are: (i) high global food prices were transmitted to domestic economies causing pressure on inflation in the long run; (ii) in the short run the impact of a positive shock in international food price increases domestic inflation, depreci-ates the currency and reduces the agricultural trade; (iii) the vulnerabilities to global food prices are more pregnant for Romania and Bulgaria; (iv) the difference in the transmission of world prices is related to the different status of the countries as regards food and agricultural trade. The findings of the research would be significant for the governments to promote policies to help farmers respond to the rising of food prices by growing more and responding to export opportunities that may arise.

scholarly journals The Effects of Rising Food and Fuel Costs on Poverty in Pakistan

2008 ◽  
Vol 13 (Special Edition) ◽  
pp. 117-138 ◽  
Author(s):  
Theresa Thompson Chaudhry ◽  
Azam Amjad Chaudhry
Keyword(s):  
Food Prices ◽  
Food Price ◽  
Energy Price ◽  
Price Shocks ◽  
Price Inflation ◽  
Fuel Prices ◽  
Price Increases ◽  
Head Count ◽  
The Impact ◽  
Poverty Levels

The dramatic increase in international food and fuel prices in recent times is a crucial issue for developing countries and the most vulnerable to these price shocks are the poorest segments of society. In countries like Pakistan, the discussion has focused on the impact of substantially higher food and fuel prices on poverty. This paper used PSLM and MICS household level data to analyze the impact of higher food and energy prices on the poverty head count and the poverty gap ratio in Pakistan. Simulated food and energy price shocks present some important results: First, the impact of food price increases on Pakistani poverty levels is substantially greater than the impact of energy price increases. Second, the impact of food price inflation on Pakistani poverty levels is significantly higher for rural populations as compared to urban populations. Finally, food price inflation can lead to significant increases in Pakistani poverty levels: For Pakistan as a whole, a 20% increase in food prices would lead to an 8% increase in the poverty head count.

scholarly journals Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faharuddin Faharuddin ◽  
M. Yamin ◽  
Andy Mulyana ◽  
Y. Yunita
Keyword(s):  
Rural Areas ◽  
Household Survey ◽  
Food Prices ◽  
Food Price ◽  
Food Groups ◽  
Cross Sectional ◽  
Content Type ◽  
Price Increases ◽  
Household Survey Data ◽  
The Impact

PurposeUsing cross-sectional household survey data, this paper aims to determine the impact of food price increases on poverty in Indonesia.Design/methodology/approachThis paper uses the quadratic almost ideal demand system applied to the 2013 Indonesian household survey data. The impact of food price increase on household welfare is calculated using a welfare measure, compensating variation.FindingsThree food groups with the most outstanding price impact on poverty are rice, vegetables and fish were studied. The 20% increase in the price of each food group causes an increase in the headcount ratio by 1.360 points (rice), 0.737 points (vegetables) and 0.636 points (fish). Maintaining food price stability for these food groups is very important because the more price increases, the more impact on poverty. Food price policies in rural areas are also more critical than in urban areas because the impact of food price increases in rural areas is higher.Research limitations/implicationsThis paper does not consider the positive impact of rising food prices on food-producing households.Practical implicationsImplementing appropriate poverty alleviation policies through food policies for main food groups and social protection.Social implicationsPromoting rural development policies and agricultural growth.Originality/valueThis paper contributes to the existing literature by providing empirical results regarding the impact of domestic food prices increase on poverty in Indonesia.

scholarly journals Does Oil Price Drive World Food Prices? Evidence from Linear and Nonlinear ARDL Modeling

Economies ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 12 ◽  
Author(s):  
Mourad Zmami ◽  
Ousama Ben-Salha
Keyword(s):  
Commodity Prices ◽  
Food Prices ◽  
Food Price ◽  
Oil Price ◽  
Agricultural Commodity ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Linear And Nonlinear ◽  
The Impact

The macroeconomic outcomes of oil price fluctuations have been at the forefront of the debate among economists, financial analysts and policymakers over the last decades. Among others, the oil price–food price nexus has particularly received a great deal of attention. While an abundant body of literature has focused on the linear relationship between oil price and food price, little is known regarding the nonlinear interactions between them. The aim of this paper is to conduct aggregated and disaggregated analyses of the impact of the Brent and West Texas Intermediate (WTI) oil prices on international food prices between January 1990 and October 2017. The empirical investigation is based on the estimation of linear and nonlinear autoregressive distributed lag (ARDL) models. The findings confirm the presence of asymmetries since the overall food price is only affected by positive shocks on oil price in the long-run. While the dairy price index reacts to both positive and negative changes of oil price, the impact of oil price increases is found to be greater. Finally, the asymmetry is present for some other agricultural commodity prices in the short-run, since they respond only to oil price decreases. All in all, the study concludes that studies assuming the presence of a symmetric impact of oil price on food price might be flawed. The findings are important for the undertaking of future studies and the design of international and national policies in the fight against food insecurity.

scholarly journals FOOD PRICE, LOSSES AND LOGISTICS AFFECTING DIET DIVERSIFICATION AND FOOD SECURITY

2020 ◽  
Vol 14 (3) ◽  
pp. 57-74
Author(s):  
Eduardo Botti Abbade
Keyword(s):  
Food Security ◽  
Food Prices ◽  
Food Price ◽  
Global Perspective ◽  
Food Loss ◽  
Global Food Security ◽  
Food Deficit ◽  
The Impact ◽  
Global Food ◽  
Domestic Food

This study aimed to investigate the impact of logistics performance, domestic food price, and food loss on diet diversification and depth of food deficit, as well as the impact of diet diversification and depth of food deficit on the prevalence of undernourishment worldwide. This investigation adopts a quantitative approach based on available data obtained from the Food and Agriculture Organization (FAO), the Global Food Security Index, and the World Bank Group. This study uses correlation analysis and multiple linear regression analysis as the analytical procedures. In a global perspective, evidence suggests that weak logistics performance tends to increase food loss, and domestic food price has a significant impact on diet diversification, as well as the domestic food price implies a significant increase in depth of food deficit in the world’s populations. Food price is the factor that most impacts the prevalence of undernourishment, severely affecting diet diversification and depth of food deficit worldwide. Reducing food prices has the potential to promote greater diet diversification for populations worldwide, contributing to promote global food security. This study highlights the necessity to develop an improved and efficient global food system, capable of reducing food prices, promote a cleaner food production and deliver improved nutrition and health for world populations. This investigation sustains that food price severely impacts the prevalence of undernourishment, affecting diet diversification and depth of food deficit worldwide.

scholarly journals The Transmission of Global Commodity Prices to Consumer Prices in a Commodity Import-Dependent Country: Evidence from Morocco

2020 ◽  
Vol 67 (1) ◽  
pp. 15-32
Author(s):  
Mounir El-Karimi ◽  
El-Ghini Ahmed
Keyword(s):  
Commodity Prices ◽  
Oil Prices ◽  
Commodity Price ◽  
Food Prices ◽  
Food Price ◽  
Oil Price ◽  
Causality Test ◽  
Consumer Prices ◽  
Short Run ◽  
The Impact

This paper uses the Breitung and Candelon (2006) causality test to examine the effect of global oil and food price changes on the inflation in Morocco over the period from 1998Q1 to 2018Q1. The results show significant transmission from oil and food prices to domestic inflation. Specifically, the food prices are shown more important than oil prices in explaining inflation in the short-run, which reflects the high weight of food in the consumption basket. However, the effect of oil prices on inflation is much more persistent than the effect of food prices. Furthermore, the impact of commodity price shocks on inflation exhibits asymmetries. The oil price hikes affect more weakly the inflation than oil price decreases, whereas the food price increases are more transmitted to inflation than food price decreases. Our findings may provide useful information to researchers and policymakers in formulating more appropriate monetary policy.

scholarly journals Determinants of food price inflation in Finland

2012 ◽  
pp. 1-7 ◽  
Author(s):  
Xavier Irz ◽  
Jyrki Niemi ◽  
Liu Xing
Keyword(s):  
Food Chain ◽  
Complex Structure ◽  
Food Prices ◽  
Food Price ◽  
Price Formation ◽  
Price Inflation ◽  
Vec Model ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

The agricultural commodity crisis of 2006-8 and the recent evolution of commodity markets have reignited anxieties in Finland over fast-rising food prices and food security. Although the impact of farm commodity price shocks on the final consumer is mitigated by a large degree of processing as well as the complex structure of the food chain, little is known about the strength of the linkages between food markets and input markets. Using monthly series of price indices from 1995 to 2010, we estimate a vector error-correction (VEC) model in a co-integration framework in order to investigate the short-term and long-term dynamics of food price formation. The results indicate that a statistically significant long-run equilibrium relationship exists between the prices of food and those of the main variable inputs consumed by the food chain, namely agricultural commodities, labour, and energy. When judged by the magnitude of long-run pass-through rates, farm prices represent the main determinant of food prices, followed by wages in food retail and the price of energy. However, highly volatile energy prices are also important in explaining food price variability. The parsimonious VEC model suggests that the dynamics of food price formation is dominated by a relatively quick process of adjustment to the long-run equilibrium, the half life of the transitional dynamics being six to eight months following a shock.

scholarly journals Macroeconomic impacts of global food price shocks on the economy of Turkey

2018 ◽  
Vol 64 (No. 11) ◽  
pp. 517-525
Author(s):  
Ayhan KAPUSUZOGLU ◽  
Xi LIANG ◽  
Nildag Basak CEYLAN
Keyword(s):  
Food Prices ◽  
Food Price ◽  
Impulse Response Functions ◽  
Price Shocks ◽  
Macroeconomic Factors ◽  
Monthly Data ◽  
Vector Autoregressive ◽  
Macroeconomic Variables ◽  
Svar Model ◽  
The Impact

The purpose of this study is to examine the impact of food prices on the macroeconomic variables of Turkey. The effects are investigated using monthly data for the period January 1980–January 2016. A structural vector autoregressive (SVAR) model is employed for the analysis. Impulse response functions are obtained to assess the impact of food price shocks on the macroeconomic variables of Turkey. To this end, SVAR model is employed as suggested by Cushman and Zha (1997). The impulse responses gathered suggest that the food price causes Turkish Lira (TRY) to appreciate and inflation to increase contemporaneously. This study provides an important contribution to the literature in terms of determining the factors and presenting the measures to be taken against these factors for Turkey which is a developing country and sensitive to macroeconomic factors.

scholarly journals Retail food prices in the Czech Republic – the influence of selected factors

2013 ◽  
Vol 61 (2) ◽  
pp. 481-492
Author(s):  
Luboš Smutka ◽  
Michal Steininger ◽  
Mansoor Maitah ◽  
Eva Rosochatecká ◽  
Anna Belova ◽  
...  
Keyword(s):  
Czech Republic ◽  
Food Products ◽  
Food Prices ◽  
Food Price ◽  
European Market ◽  
The Czech Republic ◽  
Price Development ◽  
Food Market ◽  
The Impact ◽  
The Eu

During the last decade (2000–2010), we have witnessed an unprecedented rise in food prices, especially from the world and European market viewpoint. The article aims to analyze the development of prices in the food market in the Czech Republic and to identify the influence of global and European prices development on domestic food price development and price development of selected food products. The article focuses primarily on the sensitivity of Czech food price development and especially on sensitivity of the selected commodity aggregations price development on the global and European market price growth. Furthermore, it is analyzed the impact of changes in value added tax rate from 10% to 14% on food prices in general and then on the prices of selected food products in retails network. The results of the analysis are following. The Czech food market reacts sensitively to changes in food prices on the global market as well as on the EU market but the EU price development is determining for the CR. In terms of price response to change in the VAT rate, it appears that the growth rate is not absorbed on the production side but it is largely transferred to consumer prices. The selected food sample also showed high responsiveness in the development of prices to changes in the EU market prices but there are certain variations given by specifics of the Czech market.

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