Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?

Jean-Louis Combes; Christian Hubert Ebeke; Mireille S. Ntsama Etoundi; Urbain Thierry Yogo

Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?

Jean-Louis Combes ¹ Christian Hubert Ebeke ² Mireille S. Ntsama Etoundi ¹ Urbain Thierry Yogo ³

1 CERDI - Centre d'Études et de Recherches sur le Développement International

Abstract : This paper explores the role of remittances and foreign aid inflows during food price shocks. The results yield four findings. First, low income countries and the Sub-Saharan African region are the most vulnerable to food price shocks. Second, remittance and aid inflows dampen the effect of positive food price shock and food price instability on household consumption in vulnerable countries. Third, negative food price shock episodes are associated with a significant increase in household consumption in vulnerable countries. Fourth, a lower remittance-to-GDP ratio is required in order to fully absorb the effects of food price shocks.

Keywords : Remittances Aid vulnerability Household consumption food price shocks

Document type :

Journal articles

Domain :

Humanities and Social Sciences / Economies and finances

Complete list of metadatas

https://halshs.archives-ouvertes.fr/halshs-00913164
Contributor : Cerdi Etudes & Documents - Publications <>
Submitted on : Tuesday, December 3, 2013 - 12:21:45 PM
Last modification on : Tuesday, May 21, 2019 - 1:56:24 PM

Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?

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Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?

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