Lao People’s Democratic Republic: responding to rice price inflation

Loening, Josef L. (2011): Lao People’s Democratic Republic: responding to rice price inflation. Published in: World Bank Economic Sector Work , Vol. Report, (11 August 2011)

Abstract

The objective of this study is to identify likely factors driving the 2010 rice price hike and suggest options to manage rice price volatility in the future. Regional trade is likely the main proximate cause for high glutinous rice prices. Trade with Vietnam was likely the main reason for short-term price fluctuations, while trade with Thailand affects medium- and long-term price trends. By contrast, traditional supply and demand factors explain only a small part of rice price inflation. There is, however a possibility that major supply shocks may be regional, which could affect Laos, Thailand, and Vietnam simultaneously. The effectiveness of government policy measures has been mixed. There is a need to closely coordinate rice production and trade policies in order to effectively manage price volatility. Future analysis should look at regional glutinous rice production trends and related trade flows.

• Item Type: MPRA Paper
• Language: English
• Keywords: Food prices; rice prices; sticky rice; regional trade; economic policy; Lao PDR; Thailand; Vietnam
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty

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