The impact of trade openness on the cost and affordability of a healthy diet

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This study examines how trade openness affects the cost and affordability of healthy diets using cross-country data on food prices linked to nutritional composition. Using retail price data collected from 175 countries in the context of the 2017 cycle of the World Bank’s International Comparison Program, the research investigates whether trade openness correlates with lower food prices and if this effect varies for healthier products. The analysis confirms that lower trade barriers are associated with reduced food prices, consistent with standard international trade theory. This finding holds across different measures of trade openness and levels of analysis. Importantly, results show no evidence that international trade disproportionately affects processed food prices or makes healthy options relatively more expensive.

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