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Heterogeneous impact of price spikes across countries and supply chain actors: An evidence from Central Asia and the Caucasus. A review

Author

Listed:
  • Ihtiyor Bobojonov
  • Ivan Duric

    (Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany)

  • Thomas Glauben

    (Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany)

Abstract

The causes of food price spikes are complex, and their impact on different countries varies depending on production levels and the varied policies in place. Countries in Central Asia and the Caucasus (CAC) region have implemented a wide range of reforms that vary in form and speed. The existing scientific literature reports about the consequences of price spikes in CAC; however, to date, a comparison of impact between those countries has not been made in terms of the entire supply chain perspective. Therefore, this study investigates the impact of the price spikes on the entire wheat supply chain for the first time in CAC and discusses the role of policies. Another contribution of this study is an evidence-based analysis of the role of policy reformation in maintaining food security under price shocks. Our results indicate a very limited effect of price interventions and trade restrictions on dampening wheat prices in all countries. We find that only trade diversification policy had a positive effect on reducing the level of price spikes, and thus it might be a suitable policy measure for maintaining food security.

Suggested Citation

  • Ihtiyor Bobojonov & Ivan Duric & Thomas Glauben, 2020. "Heterogeneous impact of price spikes across countries and supply chain actors: An evidence from Central Asia and the Caucasus. A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(2), pages 92-100.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:2:id:130-2019-agricecon
    DOI: 10.17221/130/2019-AGRICECON
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    1. Burstein, Ariel & Gopinath, Gita, 2014. "International Prices and Exchange Rates," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 391-451, Elsevier.
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    4. Rathmann, Régis & Szklo, Alexandre & Schaeffer, Roberto, 2010. "Land use competition for production of food and liquid biofuels: An analysis of the arguments in the current debate," Renewable Energy, Elsevier, vol. 35(1), pages 14-22.
    5. Maria CRESCIMANNO & Antonino GALATI & Tufan BAL, 2014. "The role of the economic crisis on the competitiveness of the agri-food sector in the main Mediterranean countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(2), pages 49-64.
    6. Svanidze, Miranda & Götz, Linde & Djuric, Ivan & Glauben, Thomas, 2019. "Food security and the functioning of wheat markets in Eurasia: a comparative price transmission analysis for the countries of Central Asia and the South Caucasus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(3), pages 733-752.
    7. repec:zbw:iamodp:285032 is not listed on IDEAS
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