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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Household Consumption Responses to the Franc CFA Devaluation: Evidence from Urban Senegal
Authors:Diagana, Bocar
Reardon, ThomasISNI
Year:1999
Periodical:Food Policy
Volume:24
Issue:5
Period:October
Pages:495-515
Language:English
Geographic term:Senegal
Subjects:devaluation
urban households
food
urban areas
Economics and Trade
Urbanization and Migration
External link:https://doi.org/10.1016/S0306-9192(99)00055-X
Abstract:This paper examines household consumption responses to the 1994 franc CFA devaluation. It compares consumption patterns in 1993 and 1996 for a sample of households in two urban areas within rural Senegal: Kaolack and Tambacounda. A worrying finding for policymakers to note is that the food consumption of Senegalese urban households outside of Dakar, especially those in the lowest income group, suffered from food price increases caused by devaluation both in terms of cereals, and hence caloric intake, decline and of a loss of diet diversity, in the form of proteins and vitamins to defend caloric intake levels. Also, income changes were found to be the main determinant of consumption expenditures on most food items or groups. An important set of findings concerning cereals dashed the hopes held at the time of devaluation concerning potential substitution of local grains for imported rice. Instead, rice defended its position in urban diets, and coarse grains gave a lacklustre showing after devaluation. This implies that the devaluation was not a panacea for resolving the persistent attraction of imported rice. Bibliogr., notes.
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