Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana

This paper takes a local perspective on global food price shocks by analyzing food price transmission between regional markets in Ghana. It also assesses the impacts of differential local food price increases on various household groups. Taking the recent global food crisis as an example, we find th...

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Main Authors: Cudjoe, Godsway, Breisinger, Clemens, Diao, Xinshen
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2008
Subjects:
Online Access:https://hdl.handle.net/10568/161757
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author Cudjoe, Godsway
Breisinger, Clemens
Diao, Xinshen
author_browse Breisinger, Clemens
Cudjoe, Godsway
Diao, Xinshen
author_facet Cudjoe, Godsway
Breisinger, Clemens
Diao, Xinshen
author_sort Cudjoe, Godsway
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper takes a local perspective on global food price shocks by analyzing food price transmission between regional markets in Ghana. It also assesses the impacts of differential local food price increases on various household groups. Taking the recent global food crisis as an example, we find that prices for domestic staples within all regional markets are highly correlated with prices for imported rice. However, price transmission between pairs of regional markets is limited; it is complete for local rice and maize only when more rigorous cointegration analysis is applied. Our findings also show the important role of seasonality in the determination of market integration and price transmission. The welfare effect for households as consumers appears relatively modest at the aggregate national level due to relatively diverse consumption patterns. However, the national average hides important regional differences, both between regions and within different income groups. We find that the poorest of the poor—particularly the urban poor—are the hardest hit by high food prices. The negative effect of the food crisis is particularly strong in the north of Ghana. Different consumption patterns, in which grains account for a larger share of the consumption basket in the north compared to the rest of the country, together with much lower initial per capita income levels, are the main explanations for this regional variation in the price effect.
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spelling CGSpace1617572025-11-06T07:26:28Z Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana Cudjoe, Godsway Breisinger, Clemens Diao, Xinshen shock prices poverty development policies food prices This paper takes a local perspective on global food price shocks by analyzing food price transmission between regional markets in Ghana. It also assesses the impacts of differential local food price increases on various household groups. Taking the recent global food crisis as an example, we find that prices for domestic staples within all regional markets are highly correlated with prices for imported rice. However, price transmission between pairs of regional markets is limited; it is complete for local rice and maize only when more rigorous cointegration analysis is applied. Our findings also show the important role of seasonality in the determination of market integration and price transmission. The welfare effect for households as consumers appears relatively modest at the aggregate national level due to relatively diverse consumption patterns. However, the national average hides important regional differences, both between regions and within different income groups. We find that the poorest of the poor—particularly the urban poor—are the hardest hit by high food prices. The negative effect of the food crisis is particularly strong in the north of Ghana. Different consumption patterns, in which grains account for a larger share of the consumption basket in the north compared to the rest of the country, together with much lower initial per capita income levels, are the main explanations for this regional variation in the price effect. 2008 2024-11-21T09:57:57Z 2024-11-21T09:57:57Z Working Paper https://hdl.handle.net/10568/161757 en Open Access application/pdf International Food Policy Research Institute Cudjoe, Godsway; Breisinger, Clemens; Diao, Xinshen. 2008. Local impacts of a global crisis. IFPRI Discussion Paper 842. https://hdl.handle.net/10568/161757
spellingShingle shock
prices
poverty
development policies
food prices
Cudjoe, Godsway
Breisinger, Clemens
Diao, Xinshen
Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title_full Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title_fullStr Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title_full_unstemmed Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title_short Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana
title_sort local impacts of a global crisis food price transmission and poverty impacts in ghana
topic shock
prices
poverty
development policies
food prices
url https://hdl.handle.net/10568/161757
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AT diaoxinshen localimpactsofaglobalcrisisfoodpricetransmissionandpovertyimpactsinghana