Importing high food prices by exporting: rice prices in Lao PDR

Dick Durevall and Roy van der Weide (rvanderweide@worldbank.org)

No 7119, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Markets and Market Access; Food&Beverage Industry; Emerging Markets; Access to Markets; E-Business (search for similar items in EconPapers)
Date: 2014-11-01
New Economics Papers: this item is included in nep-agr, nep-int and nep-sea
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Working Paper: Importing High Food Prices by Exporting: Rice Prices in Lao PDR (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7119

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