000117802 001__ 117802 000117802 005__ 20180122220225.0 000117802 037__ $$a634-2016-41446 000117802 041__ $$aen 000117802 245__ $$aFOOD INFLATION IN MALAWI: IMPLICATIONS FOR THE ECONOMY 000117802 260__ $$c2010-09 000117802 269__ $$a2010-09 000117802 300__ $$a93 000117802 336__ $$aThesis/ Dissertation 000117802 520__ $$aDespite consecutive years of good harvest, Malawi has experienced continuous price escalation of staple food commodities unsolved over the time. The real price of maize in Malawi has increased by 141 percent between 1998 and 2008, and has been rising along with the food prices of many other commodities over this period. This study therefore investigates the determinants of food inflation rate in Malawi and its effect on the economy. Monthly and annual data were collected from National Statistical Office and Reserve Bank of Malawi from 1978 to 2008. Data were analyzed by estimating an error correction model (ECM). The results show that fertilizer prices, crop diversification index, maize prices, diesel prices, real exchange rates and real interest rates significantly and positively influenced the rate of food price inflation in Malawi. In addition, the annual rate of food inflation, exports, imports, real interest rate and real exchange rate significantly influenced real agricultural output (GDP) and national GDP at 1 and 5 percent levels respectively. Furthermore, high food price inflation induced low purchasing power to consumers thereby reducing expenditure on consumable goods. Real national output (GDP) and agricultural GDP were negatively affected by food price inflation. The study recommends that a deliberate policy is needed to promote crop diversification in order to reduce food inflation emanating from monotonic food products. Policy makers also need to review exchange rate policy and move towards flexible exchange rate regime (e.g. crawling peg). 000117802 542__ $$fLicense granted by Julia Kelly (jkelly@umn.edu) on 2011-11-12T02:06:33Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (“Work”). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (“University”), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000117802 650__ $$aDemand and Price Analysis 000117802 650__ $$aFood Consumption/Nutrition/Food Safety 000117802 6531_ $$aFood inflation 000117802 6531_ $$aECM 000117802 6531_ $$aCrop diversification 000117802 6531_ $$aGDP 000117802 6531_ $$aEconomy 000117802 6531_ $$aMalawi 000117802 700__ $$aUlaro, Khonje Makaiko Gonapanyanja 000117802 8564_ $$s1007910$$uhttp://ageconsearch.umn.edu/record/117802/files/Khonje%20Makaiko%20Thesis.pdf 000117802 887__ $$ahttp://purl.umn.edu/117802 000117802 909CO $$ooai:ageconsearch.umn.edu:117802$$pGLOBAL_SET 000117802 912__ $$nSubmitted by Julia Kelly (jkelly@umn.edu) on 2011-11-12T02:12:14Z No. of bitstreams: 1 Khonje Makaiko Thesis.pdf: 1007910 bytes, checksum: 8b3d86f1d6e8052d744185180e0340bf (MD5) 000117802 912__ $$nMade available in DSpace on 2011-11-12T02:12:17Z (GMT). No. of bitstreams: 1 Khonje Makaiko Thesis.pdf: 1007910 bytes, checksum: 8b3d86f1d6e8052d744185180e0340bf (MD5) Previous issue date: 2010-09 000117802 982__ $$gCollaborative Masters Program in Agricultural and Applied Economics>Research Theses 000117802 980__ $$a634