Balance of Payments Volatility and Food Security: The 'Portfolio' Approach Applied to Ghana and Tanzania

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Periodical article

Title:	Balance of Payments Volatility and Food Security: The 'Portfolio' Approach Applied to Ghana and Tanzania
Author:	McLaren, John
Year:	1990
Periodical:	Eastern Africa Economic Review
Volume:	6
Issue:	2
Pages:	95-109
Language:	English
Notes:	biblio. refs., ills.
Geographic terms:	Ghana Tanzania West Africa
Subjects:	food policy balance of payments international relations Economics and Trade Economics, Commerce food security food supply
Abstract:	Food security in macroeconomic terms is largely a matter of portfolio balance. A key variable is the supply of foreign exchange net of needed food imports; lack of effective international financial arrangements or cheap buffer stocks, a high mean and low variance for this variable will help in providing a decent and reliable food supply, and these depend on the 'portfolio' of crops grown. This paper presents empirical techniques for studying the effects of 'portfolio' choices, and the 'portfolio' effects of policy changes. The techniques are applied to Ghana and Tanzania, with results which show little benefit from export diversification and little desirability for self-sufficiency. App., bibliogr., notes, ref.