Impact of soaring food price in Ethiopia: Does location matter?

Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices....

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Autores principales: Ulimwengu, John M., Workneh, Sindu, Paulos, Zelekawork
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161896
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author Ulimwengu, John M.
Workneh, Sindu
Paulos, Zelekawork
author_browse Paulos, Zelekawork
Ulimwengu, John M.
Workneh, Sindu
author_facet Ulimwengu, John M.
Workneh, Sindu
Paulos, Zelekawork
author_sort Ulimwengu, John M.
collection Repository of Agricultural Research Outputs (CGSpace)
description Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices. In this paper, we first establish evidence of regional price heterogeneity across Ethiopia. We also applied the Johansen test for market integration over 95 local maize markets and found that none of the Ethiopian regional markets for maize is integrated to the world market. However, there is significant short-term price effects between the world maize market and some Ethiopian regional markets. Using the Almost Ideal Demand System, we estimate loss in household consumption and calorie intake as induced by food price increases. The results suggest a great deal of heterogeneity across regions as well as between rural and urban areas. Studies that fail to account for the characteristics of household demand across locations are more likely to induce misleading policy recommendations.
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spelling CGSpace1618962025-11-06T06:19:25Z Impact of soaring food price in Ethiopia: Does location matter? Ulimwengu, John M. Workneh, Sindu Paulos, Zelekawork prices integration demand elasticity poverty food prices maize Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices. In this paper, we first establish evidence of regional price heterogeneity across Ethiopia. We also applied the Johansen test for market integration over 95 local maize markets and found that none of the Ethiopian regional markets for maize is integrated to the world market. However, there is significant short-term price effects between the world maize market and some Ethiopian regional markets. Using the Almost Ideal Demand System, we estimate loss in household consumption and calorie intake as induced by food price increases. The results suggest a great deal of heterogeneity across regions as well as between rural and urban areas. Studies that fail to account for the characteristics of household demand across locations are more likely to induce misleading policy recommendations. 2009 2024-11-21T09:59:14Z 2024-11-21T09:59:14Z Working Paper https://hdl.handle.net/10568/161896 en Open Access application/pdf International Food Policy Research Institute Ulimwengu, John M.; Workneh, Sindu; Paulos, Zelekawork. 2009. Impact of soaring food price in Ethiopia. IFPRI Discussion Paper 846. https://hdl.handle.net/10568/161896
spellingShingle prices
integration
demand
elasticity
poverty
food prices
maize
Ulimwengu, John M.
Workneh, Sindu
Paulos, Zelekawork
Impact of soaring food price in Ethiopia: Does location matter?
title Impact of soaring food price in Ethiopia: Does location matter?
title_full Impact of soaring food price in Ethiopia: Does location matter?
title_fullStr Impact of soaring food price in Ethiopia: Does location matter?
title_full_unstemmed Impact of soaring food price in Ethiopia: Does location matter?
title_short Impact of soaring food price in Ethiopia: Does location matter?
title_sort impact of soaring food price in ethiopia does location matter
topic prices
integration
demand
elasticity
poverty
food prices
maize
url https://hdl.handle.net/10568/161896
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