NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Food Price Spikes, Price Insulation, and Poverty

Kym Anderson, Maros Ivanic, William J. Martin

Chapter in NBER book The Economics of Food Price Volatility (2014), Jean-Paul Chavas, David Hummels, and Brian D. Wright (p. 311 - 339)
Conference held August 15-16, 2012
Published in October 2014 by University of Chicago Press
© 2014 by the National Bureau of Economic Research

This chapter first considers the impact on world food prices of the changes in restrictions on trade in staple foods during the 2008 world food price crisis. Those changes were meant to partially insulate domestic markets from the spike in international prices. This insulation added substantially to the spike in international prices for rice, wheat, maize, and oilseeds. As a result, although domestic prices rose less than they would have without insulation in some developing countries, in many other countries they rose more than they would have in the absence of such insulation. Secondly, the chapter estimates the combined impact of such insulating behavior on poverty in various developing countries and globally. The analysis finds that the actual poverty-reducing impact of insulation is much less than its apparent impact, and that its net effect was to increase global poverty in 2008 by 8 million people. The chapter examines the relative efficiency and equity of trade restrictions and domestic policies that are designed to provide social protection for the poor when international food prices spike. It also examines the potential consequences of multilateral agreements to limit changes in restrictions on trade during such times.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com

This paper was revised on July 15, 2013

Machine-readable bibliographic record - MARC, RIS, BibTeX

This chapter first appeared as NBER working paper w19530, Food Price Spikes, Price Insulation and Poverty, Kym Anderson, Maros Ivanic, Will Martin
Commentary on this chapter: Comment, Marc F. Bellemare
Users who downloaded this chapter also downloaded these:
Bellemare Comment on "Food Price Spikes, Price Insulation and Poverty"
Ravallion w19210 The Idea of Antipoverty Policy
Herrendorf, Rogerson, and Valentinyi w18996 Growth and Structural Transformation
Do, Levchenko, and Ravallion Trade Insulation as Social Protection
Chavas, Hummels, and Wright Introduction to "The Economics of Food Price Volatility"
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us