Factors Affecting Food Prices in Pakistan

Nigar Zehra and Fauzia Sohail
Additional contact information
Nigar Zehra: University of Karachi, Karachi.
Fauzia Sohail: University of Karachi, Karachi.

The Pakistan Development Review, 2023, vol. 62, issue 3, 357-374

Abstract: The purpose of the study is to identify the factors affecting food prices in Pakistan. The findings reveal that there is a negative and significant impact of the real effective exchange rate on wheat prices in the long run. Similarly, the real interest rate affects wheat and rice prices indirectly, while it has a direct impact on tea prices. There is a positive and significant impact of international crude oil prices and international food prices on most food commodities. Moreover, the study explains that in the long run, the increase in local production significantly reduces the prices of food commodities. It is also found that the government policy of adjusting (increasing) wheat support prices also has a positive and significant impact on wheat prices.

Keywords: Food Prices; Real Effective Exchange Rate; Real Interest Rate; International Crude Oil Prices; International Food Prices; Government Policy (search for similar items in EconPapers)
JEL-codes: E4 G18 L66 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://file.pide.org.pk/pdfpdr/2023/357-374.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:pid:journl:v:62:y:2023:i:3:p:357-374

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().