Economics at your fingertips  

Food price volatility and household food security: Evidence from Nigeria

Khadijat Amolegbe, Joanna Upton, Elizabeth Bageant and Sylvia Blom

Food Policy, 2021, vol. 102, issue C

Abstract: Food prices vary seasonally, particularly in areas with rainfed agricultural production and imperfect markets, and are also subject to volatility arising from macroeconomic and climatic shocks, such as global supply shocks and abrupt policy changes. The specific nature of these relationships remains a pressing empirical question, particularly in contexts where food insecurity is prevalent, prices are subject to diverse sources of variation, and governments are seeking policy options to reduce price volatility. We use panel data from Nigeria to investigate the effects of non-seasonal food price volatility, in particular unexpected increases in prices, on household food security. Accounting for substitution effects and focusing on both domestic and imported rice—key components of the Nigerian diet—we find that imported rice price increases are damaging to both dietary diversity (downward impact) and the food share of consumption expenditure (upward impact), while impacts of domestic rice price volatility are ambiguous. We find differential effects by wealth status that vary across indicators of food security: an increase in the price of imported rice increases food share more among poor households than rich households, and decreases dietary diversity more among rich households than poor households. Our findings point toward the importance of improving food security by mitigating the effects of global shocks on imported food prices, and also highlight the data challenges and complexity involved in developing precise answers to these important policy questions.

Keywords: Food Prices; Nigeria; Food Security; Net Food Buyer; Wealth Status (search for similar items in EconPapers)
JEL-codes: Q18 R22 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.foodpol.2021.102061

Access Statistics for this article

Food Policy is currently edited by J. Kydd

More articles in Food Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-09-20
Handle: RePEc:eee:jfpoli:v:102:y:2021:i:c:s0306919221000397