Food Security and the Trade via Lenses of Sanctions
Volume 8, Issue 4 (2019), pp. 813–824
Pub. online: 30 June 2019 Type: Article Open Access
30 June 2019
30 June 2019
Our paper focuses on the issues of food security and agricultural trade. Specifically, we tackle the issue of economic selfsufficiency of a country using an example of the import ban on agricultural production as one form of economic sanctions. Our paper attempts to estimate the impact of sanctions in separate regions, rather then on the aggregate country level. We propose an original methodology of estimating allocation of import ban effects based on the OECD Customer Support Estimate (CSE). Our results demonstrate that in case of some agricultural products (e.g. potatoes) consumers in most of Russian regions were net beneficiaries before 2014, but the magnitude of the benefits decreased significantly after the introduction of sanctions. This provided Russian agricultural producers with more support arising from the market price differential. All in all, we find no significant evidence of the import ban impact, however after 2014 the cumulative cost paid by consumers in different regions declined significantly due to other factors, leaving consumers in the position of net beneficiaries. Our results demonstrate that despite the economic sanctions are important, they do not affect food security of neither of conflicting parties.