Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v18y2020i1p13n5.html
   My bibliography  Save this article

The Role of Storage and Trade in Food Security

Author

Listed:
  • Kennedy P. Lynn

    (Louisiana State University, Baton Rouge, LA, USA)

  • Schmitz Andrew

    (University of Florida, Gainesville, FL, USA)

  • van Kooten G. Cornelis

    (University of Victoria, Victoria, BC, Canada)

Abstract
This paper examines the role of storage and trade on food security with respect to milled rice in India for the period 1966–2013. Data on food balances, prices, and population obtained from FAOSTAT allow for the observation of the status quo with storage and trade. Then, using a spatial equilibrium framework, the outcomes without storage or trade are simulated. Our results are consistent with the literature with respect to welfare effects. Storage results in net welfare gains to society, although producers gain while consumers lose. Producers receive a welfare gain from net exports while consumers gain from net imports. From a food security perspective, the use of storage has provided benefits to consumers by increasing stability in the market, as seen through decreased standard deviation in both domestic rice prices and per capita availability. The results are mixed with respect to stability from trade.

Suggested Citation

  • Kennedy P. Lynn & Schmitz Andrew & van Kooten G. Cornelis, 2020. "The Role of Storage and Trade in Food Security," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(1), pages 1-13, January.
    • Handle: RePEc:bpj:bjafio:v:18:y:2020:i:1:p:13:n:5
    DOI: 10.1515/jafio-2019-0056
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jafio-2019-0056
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/jafio-2019-0056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christophe Gouel, 2013. "Rules versus Discretion in Food Storage Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 1029-1044.
    2. G. C. Van Kooten & Andrew Schmitz, 1985. "Commodity Price Stabilization: The Price Uncertainty Case," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 426-434, May.
    3. Joseph Glauber & Peter Helmberger & Mario Miranda, 1989. "Four Approaches to Commodity Market Stabilization: A Comparative Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 326-337.
    4. Tisdell, Clement A., 1972. "Some Circumstances In Which Price Stabilization By The Wool Commission Reduces Incomes," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 1-8, August.
    5. Frederick V. Waugh, 1944. "Does the Consumer Benefit from Price Instability?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 58(4), pages 602-614.
    6. Andrew Schmitz & Haim Shalit & Stephen J. Turnovsky, 1981. "Producer Welfare and the Preference for Price Stability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 157-160.
    7. Jolejole-Foreman, Maria Christina & Mallory, Mindy L. & Baylis, Katherine R., 2013. "Impact of Wheat and Rice Export Ban on Indian Market Integration," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150595, Agricultural and Applied Economics Association.
    8. Massell, Benton F, 1970. "Some Welfare Implications of International Price Stabilization," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 404-417, March-Apr.
    9. Paul A. Samuelson, 1972. "The Consumer Does Benefit from Feasible Price Stability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(3), pages 476-493.
    10. Gouel, Christophe, 2013. "Optimal food price stabilisation policy," European Economic Review, Elsevier, vol. 57(C), pages 118-134.
    11. Jurg Bieri & Andrew Schmitz, 1974. "Market Intermediaries and Price Instability: Some Welfare Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 280-285.
    12. Richard E, Just & Darrell L. Heuth & Andrew Schmitz, 2004. "The Welfare Economics of Public Policy," Books, Edward Elgar Publishing, number 3342.
    13. Bieri, Jurg & Schmitz, Andrew, 1973. "Export instability, monopoly power, and welfare," Journal of International Economics, Elsevier, vol. 3(4), pages 389-396, November.
    14. Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-152, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Van Kooten, G. C. & Spriggs, John & Schmitz, Andrew, 1989. "The Impact of Canadian Commodity Stabilization Programs on Risk Reduction and the Supply of Agricultural Commodities," Working Papers 244037, Agriculture and Agri-Food Canada.
    2. Schmitz Andrew, 2020. "Commodity Storage, Price Stabilization, and Food Security," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(1), pages 1-2, January.
    3. Fertő, Imre, 1995. "A mezőgazdasági árak stabilizálásának problémáiról [On the problems of stabilizing agricultural prices]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 256-269.
    4. van Kooten G. Cornelis & Schmitz Andrew & Kennedy P. Lynn, 2020. "Is Commodity Storage an Option for Enhancing Food Security in Developing Countries?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(1), pages 1-12, January.
    5. Mahama, Ramatu, 1985. "A stochastic simulation of the impact of price insulation policies on world wheat market stability," ISU General Staff Papers 198501010800008868, Iowa State University, Department of Economics.
    6. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters, in: The Economics of Food Price Volatility, pages 261-306, National Bureau of Economic Research, Inc.
    7. McBride, Linden, 2014. "Exploring food commodity price risk preferences among Tanzanian households," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172437, Agricultural and Applied Economics Association.
    8. Christophe Gouel & Madhur Gautam & Will J. Martin, 2016. "Managing food price volatility in a large open country: the case of wheat in India," Oxford Economic Papers, Oxford University Press, vol. 68(3), pages 811-835.
    9. Christophe Gouel, 2012. "Agricultural Price Instability: A Survey Of Competing Explanations And Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 129-156, February.
    10. Fox, Roger W., 1979. "Brazil's minimum price policy and the agricultural sector of northeast Brazil:," Research reports 9, International Food Policy Research Institute (IFPRI).
    11. Marco de Pinto & Laszlo Goerke, 2022. "Cost uncertainty in an oligopoly with endogenous entry," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 927-948, October.
    12. Marc F. Bellemare & Yu Na Lee & David R. Just, 2020. "Producer Attitudes Toward Output Price Risk: Experimental Evidence from the Lab and from the Field," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 806-825, May.
    13. Gouel, Christophe, 2013. "Optimal food price stabilisation policy," European Economic Review, Elsevier, vol. 57(C), pages 118-134.
    14. Kim, Tae-Kyun, 1989. "The factor bias of technical change and technology adoption under uncertainty," ISU General Staff Papers 1989010108000010138, Iowa State University, Department of Economics.
    15. Chavas, Jean-Paul, 2017. "On food security and the economic valuation of food," Food Policy, Elsevier, vol. 69(C), pages 58-67.
    16. Wright, Brian D. & Williams, Jeffrey C., 1986. "Measurement of Consumer Gains from Market Stabilization," CUDARE Working Papers 198343, University of California, Berkeley, Department of Agricultural and Resource Economics.
    17. Shively, Gerald E., 2001. "Price thresholds, price volatility, and the private costs of investment in a developing country grain market," Economic Modelling, Elsevier, vol. 18(3), pages 399-414, August.
    18. Brockhaus, Jan & Kalkuhl, Matthias & Kozicka, Marta, 2016. "What Drives India’s Rice Stocks? Empirical Evidence," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235659, Agricultural and Applied Economics Association.
    19. Boussard, Jean-Marc, 1996. "When risk generates chaos," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 433-446, May.
    20. Turnovsky, Stephen J., 1993. "The impact of terms of trade shocks on a small open economy: A stochastic analysis," Journal of International Money and Finance, Elsevier, vol. 12(3), pages 278-297, June.

    More about this item

    Keywords

    food availability; food policy; food security; food storage; price instability; price stabilization; welfare;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:18:y:2020:i:1:p:13:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.