Figure 16.2 shows the relationship between trade reforms and a set of food security indicators, and lists examples of the key modifying parameters.
Columns 1, 3 and 5 depict an elaboration of the simple causal relationship from Figure 16.1.
This emphasis enables the identification of the winners and losers from trade reform in both the short run and in the longer term.
It also allows the endogenization of the domestic institutional and policy environment in order to identify other domestic reforms that may have modified the impact of trade reforms.
In the remaining sections of this chapter, the components of the framework depicted in Figure 16.1 are first discussed in more detail at a conceptual level, before focusing in on the two sets of modifying parameters, where the discussion revolves around the types of questions that researchers might ask in interpreting the strength of the relationship.
In the following chapter, methodological guidelines are developed with a view to explaining how the conceptual framework might be operationalized in practice.
This impact will often be greater than that of agricultural trade liberalization alone.
Parameters modifying the degree of price transmission and supply response The second column reflects the factors that may influence the impact of economic reforms.
· Are there any mechanisms to offset the effect of price fluctuations (for example, storage capacity, warehouse receipt systems)?
· What mechanisms are effective in helping to manage commodity price risk?