GTAP Resources: Resource Display
| GTAP Resource #4362 |
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"Liberalized World Trade and Food Import under Foreign Exchange Constraints in the CFAs Franc Zone of Sub-Saharan Africa (SSA)" by Sene, Seydina Abstract Despite CFA s’ countries dependence on commodity export revenue, chronic imbalances of food trade deficit and food insecurity remain inherent and puzzling. To offset exogenous shocks in their domestic markets, net food importing countries in the CFA zone are adjusting their import tariffs and homologate domestic prices of imported food in the CFA zones. This paper uses a vector error correction model (VECM) to investigate the link between food import, relative commodity prices, real effective exchange rates, food production, GDP, and trade openness. The data are on specific commodities such as rice, wheat, maize, and sugar, from 1969 to 2012. This paper finds a long-run relationship between world price index, domestic production, income, real effective exchange rate and trade openness. Under fixed exchange regime, GDP, domestic food production, relative price of food, and trade openness are the most determinant of food import in the CFA zones. Policy options focusing on long-term investment in productivity, and trade openness are the fundamental to curtail the increasing volume of food import volume/bill under fixe exchange rate regime. KEYWORDS: Co-integration, CFA Zone, Food imports, Food Security, Foreign Exchange, International Trade, VECM, Sub Saharan Africa |
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- Software and modeling tools - Trade and the environment - Economic analysis of poverty - Economic development - Economic growth - Technological change - Agricultural policies - Food prices and food security - The GTAP Data Base and extensions - Africa (West) |
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Last Modified: 9/15/2023 2:05:45 PM
