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Analysis of the Impact of Changes in the Prices of Rice and Fuel on Poverty in the Philippines

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Author Info

  • Celia M. Reyes

    (PIDS)

  • Alellie B. Sobrevinas
  • Joel Bancolita
  • Jeremy de Jesus
Registered author(s):

    Abstract

    The study aims to assess the impact of rising prices of rice and fuel on poverty in the Philippines. In particular, the variations in the potential effects among different group of households were analyzed using household level data. Results of the study confirm that the impact of increasing prices of rice and fuel vary across different groups of households depending on the sector of employment, level of urbanity, income group and geographical location. In fact, there are losers and gainers from the recent increases in the prices of rice and fuel. In response to higher prices, households adopted different coping mechanisms, some of which are damaging and counter-productive in the medium- and long-run. The Philippine government has also responded by implementing programs that would mitigate the negative impact of soaring prices. It is recommended that household level data for all households in the community, such as those being generated by the community-based monitoring system (CBMS) being implemented by local government units, be used to identify eligible beneficiaries through some proxy means test model. This would help reduce leakage of program benefits to the non-poor as well as ensure that the poor benefit from these programs.

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    File URL: http://www.eaber.org/node/22687
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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22687.

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    Date of creation: Jan 2009
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    Handle: RePEc:eab:develo:22687

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    Related research

    Keywords: poverty; community-based monitoring system; impact analysis; prices; rice; fuel; coping mechanisms; pass-through rates; net benefit ratio;

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    References

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    1. Intal, Ponciano Jr. S. & Garcia, Marissa C., 2005. "Rice and Philippine Politics," Discussion Papers, Philippine Institute for Development Studies DP 2005-13, Philippine Institute for Development Studies.
    2. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports, International Food Policy Research Institute (IFPRI) 114, International Food Policy Research Institute (IFPRI).
    3. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 41(3), pages 587-603, April.
    4. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
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    Cited by:
    1. Borines, M.G. & de Leon, R.L. & McHenry, M.P., 2011. "Bioethanol production from farming non-food macroalgae in Pacific island nations: Chemical constituents, bioethanol yields, and prospective species in the Philippines," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 15(9), pages 4432-4435.
    2. Mehta, Aashish & Jha, Shikha & Quising, Pilipinas, 2013. "Self-targeted food subsidies and voice: Evidence from the Philippines," Food Policy, Elsevier, Elsevier, vol. 41(C), pages 204-217.
    3. Mehta, Aashish & Jha, Shikha, 2014. "Pilferage from opaque food subsidy programs: Theory and evidence," Food Policy, Elsevier, Elsevier, vol. 45(C), pages 69-79.

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