Food Prices and Political Instability
March 1, 2011
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Summary
We examine the effects that variations in the international food prices have on democracy and intra-state conflict using panel data for over 120 countries during the period 1970-2007. Our main finding is that in Low Income Countries increases in the international food prices lead to a significant deterioration of democratic institutions and a significant increase in the incidence of anti-government demonstrations, riots, and civil conflict. In the High Income Countries variations in the international food prices have no significant effects on democratic institutions and measures of intra-state conflict. Our empirical results point to a significant externality of variations in international food prices on Low Income Countries' social and political stability.
Subject: Estimation techniques, Food prices, Inflation, Personal income, Price indexes
Keywords: country, food price, price index, WP
Pages:
22
Volume:
2011
DOI:
Issue:
062
Series:
Working Paper No. 2011/062
Stock No:
WPIEA2011062
ISBN:
9781455221066
ISSN:
1018-5941
