PurposeThe purpose of this paper is to empirically study the impact of the coronavirus disease 2019 (COVID-19) on food prices in China and provides policy implications for crisis management for other countries who are still under the crisis of COVID-19 and for the future in China and beyond as well.Design/methodology/approachThis paper first designed a theoretical model of market equilibrium, which shows that the impact of COVID-19 on food prices is linked to the impact difference on demand and supply in response to the COVID-19 crisis. Then we collected the representative prices data for four major food products (rice, wheat flour, pork and Chinese cabbages) from three provinces (Shandong as a producing base, Beijing as a consumption base and Hubei as the epicenter), and set up an iGARCH model.Findings(1) No significant impact on rice and wheat flour prices, (2) significantly positive impact on cabbages prices and (3) various impact on pork prices. Note that the outbreak and the severity of COVID-19 have different impacts. The outbreak itself may have a relatively large impact on pork and cabbage prices, which may result from social panic, while the magnitude of the impact of severity is relatively small, and some are negative, perhaps due to more reduced demand during the quarantine.Practical implicationsChina always puts food security in its prior position of policy agenda and has been preparing for the worst scenario of the food security crisis. In the anti-COVID-19 campaign, China's local governments developed many measures to ensure food provision for each consumer. Hence, the impact of COVID-19 on food prices is minor. However, the outbreak of COVID-19 crisis could cause social panic in some scenarios where consumers may hoard food. Eventually, it may form a vicious cycle to push up food prices. This will be a challenging policy issue in crisis management for almost all governments.Originality/valueThis paper provides empirical evidence on the impact of COVID-19 on food prices in China. China has basically contained the COVID-19 in the whole country, and no major food crisis occurred during this process. The results will provide information on crisis management for other countries that are still under the COVID-19 crisis, and for future China and beyond.
Purpose The purpose of this paper is to empirically investigate the influencing factors of loan demand in agriculture. With the structural changes that agriculture is undergoing and the accordingly higher financing requirements and volumes, the analysis of loan demand in agriculture is of particular interest. Design/methodology/approach Detailed actual loan data at farm level, which is provided by a major German development bank for the agricultural sector, is used for the analysis. The data set covers the period from 2010 to 2014 and consists of 68,430 observations. Due to the data structure, an ordinary least square regression is conducted with the loan amount as the dependent variable. Many explanatory variables are included, such as the interest rate, the intended use of the loan, grace periods, the gross value added (GVA) and the business climate index for agriculture. Findings Amongst others, the authors find that interest rate, GVA, grace periods and farmers’ business expectations have significant effects on the loan demand in agriculture. According to the results, the interest rate has a significant negative effect, whereas the granted grace periods, the GVA in agriculture and farmers’ business expectations have significant positive effects on the loan demand. Originality/value This paper investigates the determinants of loan demand in agriculture in a developed country by using unique and comprehensive data at loan and farm level. Amongst others, elasticities of loan demand in agriculture are determined.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu show that farmers with a price expectation below the actual price level have a higher preference for using PHIs against cash sales in general and that the individual degree of risk aversion can have a significant impact on farmers' choices of a specific PHI. A generally lower preference of farmers with available storage capacities for using PHIs as assumed in many theoretical contributions in the literature, however, cannot be confirmed. Terms of use: Documents in
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