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The Political Economy of Food Price: the Case of Ethiopia

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  • Assefa Admassie

Abstract

Food prices increased significantly in 2007-08 in Ethiopia due to several supply- and demand-side factors. The Ethiopian government released emergency food grain reserves, imported and distributed wheat at subsidized price, banned the export of staple cereals, and removed value added and turnover taxes on food items. It also increased the reserve requirement of commercial banks and reduced domestic borrowing by public enterprises. These measures were mostly initiated by the government and the role of interest groups as well as local and international actors has been limited.

Suggested Citation

  • Assefa Admassie, 2013. "The Political Economy of Food Price: the Case of Ethiopia," WIDER Working Paper Series wp-2013-001, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2013-001
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2013-001.pdf
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    References listed on IDEAS

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    1. Ulimwengu, John M. & Workneh, Sindu & Paulos, Zelekawork, 2009. "Impact of soaring food price in Ethiopia: Does location matter?," IFPRI discussion papers 846, International Food Policy Research Institute (IFPRI).
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    5. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2012. "Growth and Chronic Poverty: Evidence from Rural Communities in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 238-253, February.
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    Cited by:

    1. Haile, Mekbib G. & Algieri, Bemardina & Kalkuhl, Matthias & Gebreselassie, Samuel, 2016. "Analysis of Price Shock Transmission: Case of the Wheat-Bread Market Value Chain in Ethiopia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246312, African Association of Agricultural Economists (AAAE).
    2. Aragie, Emerta Asaminew & Balié, Jean & Magrini, Emiliano & Morales Opazo, Cristian, 2016. "Can a cereal export ban affect a net food-importing economy? The case of Ethiopia," Conference papers 332747, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Yami, Mesay & Meyer, Ferdi & Hassan, Rashid, 2016. "Testing price leadership role in major regional maize markets in Ethiopia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249439, African Association of Agricultural Economists (AAAE).
    4. Yami, Mesay & Meyer, Ferdi & Hassan, Rashid, 2017. "Testing price leadership in major regional maize markets in Ethiopia: implications for targeted market intervention," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(2), March.
    5. Derrill D. Watson, 2017. "The political economy of food price policy during the global food price crisis of 2006-2008," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(3), pages 497-509, June.
    6. Muhammed A. Usman & Mekbib G. Haile, 2017. "Producer to retailer price transmission in cereal markets of Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(4), pages 815-829, August.
    7. Andinet Woldemichael & Kidane Daniel & Shimeles Abebe, 2017. "Working Paper 276 - A Tax on Children? Food Price Inflation and Health," Working Paper Series 2393, African Development Bank.

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