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

AGRODEP Author: 
Authors: 
Jean-Louis Combes, Christian Hubert Ebeke, Sabine Mireille Ntsama Etoundi, and Thierry Urbain Yogo 
Publisher: 
Elsevier 

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.

Publication date: 
1 Fév, 2014 
Source / Citation: 

Combes, Jean-Louis, Christian Hubert Ebeke, Sabine Mireille Ntsama Etoundi, and Thierry Urbain Yogo. February 2014. "Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?" World Development, 54, pp 81-98.