SRI LANKAN  JOURNAL OF  AGRICULTURAL ECONOMICS

Volume 14,15.  Number 1.  2012,2013


Changing Incomes and Food Prices: The Implications for Rural and Urban Food Security in Sri Lanka :/

S. Ratnasiri, J.Bandara and P. Koralegedara  *

ABSTRACT

Although rising food prices have hit hard on a large number of
households in many developing countries, the vulnerability in terms of food
security varies across different household sectors within a country. In this
study we have developed a simple analytical model and used it to examine
the food security vulnerability across different households to a shock in food
prices by using three commonly-known household sectors (urban, rural,
estate)in Sri Lanka. In particular, we have estimated the combined impact of
income and price rises on food security of these sectors. Our empirical results
suggest that the overall food security in all three household groups (measured
in terms of real food consumption above the poverty line food consumption)
has been marginally decreasing over time in Sri Lanka. Furthermore, the
negative effect of rising food prices has been partially offset by the positive
income effect in all three household sectors. The results also suggest that the
urban sector is highly vulnerable to a food price shock than the other two
sectors. The least vulnerable group is the rural sector, whilst the estate sector
lies in the middle.


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Authors are Lecturer, Associate Professor and PhD candidate respectively at Department of Accounting,
Finance and Economics, Griffith University, Gold Coast, Australia.

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Ratnasiri, Bandara and Koralagedara  2013 , Sri Lankan Journal of Agricultural Economics. Volume 13,14 (1). Pp. 1 - 17

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