Publication: Importing High Food Prices by Exporting : Rice Prices in Lao PDR
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Published
2014-11
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Date
2014-12-03
Author(s)
Durevall, Dick
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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.
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“Durevall, Dick; van der Weide, Roy. 2014. Importing High Food Prices by Exporting : Rice Prices in Lao PDR. Policy Research Working Paper;No. 7119. © http://hdl.handle.net/10986/20646 License: CC BY 3.0 IGO.”
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