Economics at your fingertips  

Distributional impact of political violence: evidence from differential impacts on commodity price

Kazi Iqbal (), Kenmei Tsubota, Abu Shonchoy () and Hoque Mainul

No 711, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: The economic cost of political violence is well documented, studying its effect on a myriad of economic indicators such as manufacturing productivity, export performance, comparative advantage, cost of production, etc. While these are very important issues capturing largely long run effect of the political violence, short run welfare loss of the citizen due to political instability is mostly absent from the literature. One salient channel through which political instability impacts welfare is the price of essential food items. Our study uses political strikes of Bangladesh to examine its impact on rice price. We particularly use three types of rice – fine, medium and coarse to capture how the impact varies with the quality of rice and thus different income groups of buyers. We use daily retail and weekly wholesale price data of each district from Department of Agricultural Marketing (DAM) for the period 2010-2016 and pair them up with the incidence of strike data compiled by Ahsan and Iqbal (2016). The richness of this high frequency data allows us to control for all types of time and district invariant confounders using fixed effects. The results show that on the day of strike, rice price increases and this increase is higher for coarse rice. It indicates that the political strikes is costly for the ordinary citizen and the cost is disproportionately large on the poor more, who are the consumers of lower quality rice.

Keywords: Political strikes; Commodity price; Impact analysis; Bangladesh; Prices (search for similar items in EconPapers)
JEL-codes: D24 D74 O14 (search for similar items in EconPapers)
Date: 2018-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in IDE Discussion Paper = IDE Discussion Paper, No. 711. 2018-05

Downloads: (external link) ... bute_id=22&file_no=1 First version, 2018 (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:

Ordering information: This working paper can be ordered from
Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN

Access Statistics for this paper

More papers in IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO) Contact information at EDIRC.
Bibliographic data for series maintained by Sho Enomoto ().

Page updated 2022-05-08
Handle: RePEc:jet:dpaper:dpaper711