The impact of maize price shocks on household food security: Panel evidence from Tanzania |
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| Affiliation: | 1. Department of Agricultural Economics, 342 Waters Hall, Kansas State University, Manhattan, KS 66506-4011, United States;2. Department of Agricultural Economics, and Feed the Future Innovation Lab for Collaborative Research on Sorghum and Millet, 342 Waters Hall, Kansas State University, Manhattan, KS 66506-4011, United States;1. UMR Économie Publique, INRA – AgroParisTech, Université Paris-Saclay, 78850 Thiverval-Grignon, France;2. Department of Economics and Director of LICOS Centre for Institutions and Economic Performance at KU Leuven, Belgium;3. CEPS Centre for European Policy Studies, Brussels, Belgium;1. ETH Zurich, NADEL - Center for Development and Cooperation Clausiusstrasse 37, CLD, 8092 Zürich, Switzerland;2. University of Göttingen, Department of Economics, Platz der Göttinger Sieben 3, 37073 Göttingen, Germany |
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| Abstract: | Using three waves (2008/09, 2010/11, 2012/13) of the Tanzanian National Panel Survey, this study investigates the impact of maize price shocks on household food security. Between 2008/09 and 2012/13, calorie intake stagnated for urban households, yet sharply deteriorated for rural households. The latter was driven by a significant decline in the consumption of the major staple maize which showed strongest price hikes among all major food items. Fixed-effects regressions indicate a clear negative relationship between maize prices and average household energy intake. Almost all population groups were found to be negatively affected by maize price shocks, with rural landless households being the most vulnerable group. In particular, a 50 percent rise in maize prices decreases caloric intake for rural (urban) households on average by 4.4 (5.4) percent, and for rural landless households by 12.6 percent. Results further indicate that subsistence agriculture can act as an effective strategy to insure against food price volatility. |
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| Keywords: | Food price shock Food security Subsistence agriculture Maize Panel data Africa |
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