Publication:
Impact of Grain Trade Policies on Prices and Welfare: Evidence from Malawi

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dc.contributor.authorFuje, Habtamu
dc.contributor.authorPullabhotla, Hemant K.
dc.date.accessioned2020-10-16T19:45:55Z
dc.date.available2020-10-16T19:45:55Z
dc.date.issued2020-10
dc.description.abstractRestricting cross-border trade through export bans in an attempt to stabilize domestic prices has been a particularly popular policy tool used by many sub-Saharan countries in recent years. However, little is known about how the variability in harvests and seasonality -- two critical dimensions of smallholder agriculture in Africa -- mediate the effects of export bans on household welfare. This study assesses the short-term impact of export bans on prices and welfare of households in Malawi, accounting for these heterogeneities. It uses monthly panel data on maize prices from 152 markets in Malawi and neighboring countries. To identify the impacts of the bans, the study compares the change in price dispersion between a domestic market in Malawi and another market in a neighboring country, relative to the price dispersion between the domestic market and other markets within Malawi that are at a similar distance as the domestic-foreign market pair. The findings show that export bans, in the short run, are associated with lower domestic prices, lower relative prices, and less seasonality in prices in Malawi. This is after accounting for harvest levels and the existence of trade restrictions in neighboring countries. The short-run effects of the export bans help explain why policymakers are likely to engage in the use of such policies. However, the welfare analysis shows that the welfare gains and poverty reduction effects are small in magnitude and likely to be offset by the long-run distortionary effects of restrictive trade policies.en
dc.identifierhttp://documents.worldbank.org/curated/en/571291602596745920/Impact-of-Grain-Trade-Policies-on-Prices-and-Welfare-Evidence-from-Malawi
dc.identifier.doi10.1596/1813-9450-9436
dc.identifier.urihttps://hdl.handle.net/10986/34631
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9436
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectGRAIN MARKET
dc.subjectAGRICULTURAL TRADE
dc.subjectEXPORT BAN
dc.subjectFOOD SECURITY
dc.subjectHOUSEHOLD WELFARE
dc.subjectGRAIN PRICES
dc.subjectTRADE RESTRICTIONS
dc.subjectTRADE POLICY
dc.subjectPRICE DISPERSION
dc.titleImpact of Grain Trade Policies on Prices and Welfareen
dc.title.subtitleEvidence from Malawien
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleImpact of Grain Trade Policies on Prices and Welfare : Evidence from Malawi
okr.date.disclosure2020-10-13
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/571291602596745920/Impact-of-Grain-Trade-Policies-on-Prices-and-Welfare-Evidence-from-Malawi
okr.guid571291602596745920
okr.identifier.doi10.1596/1813-9450-9436
okr.identifier.externaldocumentum090224b087ea3e45_1_0
okr.identifier.internaldocumentum32482083
okr.identifier.reportWPS9436
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/571291602596745920/pdf/Impact-of-Grain-Trade-Policies-on-Prices-and-Welfare-Evidence-from-Malawi.pdfen
okr.region.administrativeAfrica
okr.region.countryMalawi
okr.statistics.combined1551
okr.statistics.dr571291602596745920
okr.statistics.drstats682
okr.topicAgriculture::Agricultural Sector Economics
okr.topicAgriculture::Agricultural Trade
okr.topicAgriculture::Food Markets
okr.topicAgriculture::Food Security
okr.topicInternational Economics and Trade::Trade Policy
okr.topicPoverty Reduction::Inequality
okr.unitPoverty and Equity Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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