International food prices and poverty in Indonesia
AbstractThis paper argues that recent increases in international food prices worsened poverty incidence in Indonesia, even though many poor farmers benefited. This conclusion is based on the application of a multi-sectoral, multi-household general equilibrium model of the Indonesian economy. The positive effect on the welfare of poor farmers was exceeded by the negative effect on poor consumers. Indonesia’s ban on rice imports since 2004 complicates this account. The import ban shielded Indonesia’s internal rice market from the temporary world price increases from 2007 to 2008, but did so at the expense of permanently increasing both rice prices and poverty incidence.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia with number 59259.
Date of creation: 2010
Date of revision:
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More information through EDIRC
Indonesia; Food Prices; Poverty Incidence; General Equilibrium Modeling; International Development; D58; I32; F14;
Other versions of this item:
- Peter Warr & Arief Anshory Yusuf, 2009. "International food prices and poverty in Indonesia," Departmental Working Papers 2009-19, The Australian National University, Arndt-Corden Department of Economics.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-22 (Agricultural Economics)
- NEP-ALL-2010-05-22 (All new papers)
- NEP-DEV-2010-05-22 (Development)
- NEP-SEA-2010-05-22 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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