EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/57653
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorGiordani, Paolo E.en_US
dc.contributor.authorRocha, Nadiaen_US
dc.contributor.authorRuta, Micheleen_US
dc.date.accessioned2012-04-19en_US
dc.date.accessioned2012-04-27T10:44:35Z-
dc.date.available2012-04-27T10:44:35Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/57653-
dc.description.abstractThis paper studies the relationship between export policy and food prices. We show that, when individuals are loss averse, food exporters may use trade policy to shield the domestic economy from large price shocks. This creates a complementarity between the price of food in international markets and export policy. Specifically, unilateral actions by exporting countries give rise to a multiplier effect: when a shock in the international food market drives up (down) its price, governments respond by imposing export restrictions (subsidies), thus exacerbating the initial shock and soliciting further export activism. We test this theory with a new dataset that comprises monthly information on trade measures across 125 countries and 29 food products for the period 2008-10, finding evidence of a multiplier effect. Global restrictions in a product (i.e. the share of international trade covered by export restrictions) are positively correlated with the probability of imposing a new export restriction on that product, especially for staple foods. Large exporters are found to be more reactive to restrictive measures, suggesting that the multiplier effect is mostly driven by this group. Finally, we estimate that a 1 per cent surge in global restrictions increased international food prices by 1.1 per cent on average during 2008-10. These findings contribute to inform the broader debate on the proper regulation of export policy within the multilateral trading system.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Trade Policy 3783en_US
dc.subject.jelF13en_US
dc.subject.jelF59en_US
dc.subject.jelQ02en_US
dc.subject.jelQ17en_US
dc.subject.ddc330en_US
dc.subject.keywordloss aversionen_US
dc.subject.keywordexport policyen_US
dc.subject.keywordmultiplier effecten_US
dc.subject.keywordfood crisisen_US
dc.subject.keywordWTOen_US
dc.titleFood prices and the multiplier effect of export policyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn690249314en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
690249314.pdf826.72 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.