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

Dick Durevall () and Roy van der Weide ()
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Dick Durevall: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden, http://www.economics.gu.se

No 607, Working Papers in Economics from University of Gothenburg, Department of Economics

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: exports; food prices; free trade; rice prices; rice markets; sticky rice; welfare (search for similar items in EconPapers)
JEL-codes: F15 Q11 Q17 Q18 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014-11
New Economics Papers: this item is included in nep-agr, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://gupea.ub.gu.se/handle/2077/37520 (text/html)

Related works:
Journal Article: Importing High Food Prices by Exporting: Rice Prices in Lao PDR (2017)
Working Paper: Importing high food prices by exporting: rice prices in Lao PDR (2014)
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