Importing High Food Prices by Exporting: Rice Prices in Lao PDR

Durevall, Dick,1954Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik,Centrum för globalisering och utveckling (GCGD),Department of Economics,Gothenburg Centre for Globalization and Development (GCGD) (författare)

This paper shows how a developing country, Lao PDR, imports high glutinous rice prices by exporting its staple food to neighboring countries, Vietnam and Thailand. Lao PDR has extensive export controls on rice, generating a sizable difference between domestic and international prices. Controls are relaxed after good harvests, leading to a surge in exports early in the season and rapidly rising prices later in the year. There is thus a strong case for removal of trade restrictions since they give rise to price spikes, keep the long-term price of glutinous rice low, and thereby hinder increases in income from agriculture. Although this is a case study of Lao PDR, the findings may equally apply to other developing countries that export their staple food.

van der Weide, Roy (författare)
Göteborgs universitetInstitutionen för nationalekonomi med statistik (creator_code:org_t)

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