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Citation Information

Type Working Paper - World Bank Policy Research Working Paper
Title Importing high food prices by exporting: rice prices in Lao PDR
Author(s)
Issue 7119
Publication (Day/Month/Year) 2014
URL https://gupea.ub.gu.se/bitstream/2077/37520/1/gupea_2077_37520_1.pdf
Abstract
This paper shows how a developing country, Lao PDR, imports high glutinous rice
prices by exporting its staple food to neighboring countries, Vietnam and Thailand.
Lao PDR has extensive export controls on rice, generating a sizable difference
between domestic and international prices. Controls are relaxed after good harvests,
leading to a surge in exports early in the season and rapidly rising prices later in the
year. There is thus a strong case for removal of trade restrictions since they give rise
to price spikes, keep the long-term price of glutinous rice low, and thereby hinder
increases in income from agriculture. Although this is a case study of Lao PDR, the
findings may equally apply to other developing countries that export their staple
food.

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