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The Impact of Rising Food Prices on the Poor

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Author Info

  • Alberto Zezza

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Carlo Azzarri

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Katia Covarrubias

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Luca Tasciotti

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Gustavo Anriquez

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

This paper analyzes the household level impact of an increase in price of major tradable staple foods in a cross section of developing countries, using nationally representative household surveys. We find that, in the short term, poorer households and households with limited asset endowments and access to agricultural inputs will be hit the hardest by the price shock. Given the ample degree of heterogeneity among households and among the poor, the analysis emphasizes the importance of meaningful policy research to go beyond average impacts to look at how access to assets and inputs, livelihood strategies and other key household characteristics drive the magnitude and distribution of the effects of the price increases.

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Bibliographic Info

Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 08-07.

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Length: 37 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:fao:wpaper:0807

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Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
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Fax: +39 06 57055522
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Web page: http://www.fao.org/es/esa/
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Related research

Keywords: Food prices; net buyers; net sellers; staples; poverty.;

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References

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  1. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-85, July.
  2. Sébastien Dessus & Santiago Herrera & Rafael de Hoyos, 2008. "The impact of food inflation on urban poverty and its monetary cost: some back-of-the-envelope calculations," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 417-429, November.
  3. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
  4. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
  5. Alberto Zezza & Paul Winters & Benjamin Davis & Gero Carletto & Katia Covarrubias & Esteban Quinones & Kostas Stamoulis & Takis Karfakis & Luca Tasciotti & Stefania DiGiuseppe & Genny Bonomi, 2007. "Rural Household Access to Assets and Agrarian Institutions; A Cross Country Comparison," Working Papers 07-17, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  6. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
  7. 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, vol. 78(3), pages 656-669.
  8. Davis, Benjamin & Covarrubias, Katia & Stamoulis, Kostas G. & Winters, Paul C. & Carletto, Calogero & Quinones, Esteban & Zezza, Alberto & Di Giuseppe, Stefania, 2007. "Rural Income Generating Activities: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7913, European Association of Agricultural Economists.
  9. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
  10. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
  11. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer, vol. 38(1), pages 115-132, February.
  12. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49314, Agricultural and Applied Economics Association.
  13. Quisumbing, Agnes & Pandolfelli, Lauren, 2008. "Promising approaches to address the needs of poor female farmers:," Research briefs 13, International Food Policy Research Institute (IFPRI).
  14. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
  15. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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Citations

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Cited by:
  1. Jonasson, Erik & Filipski, Mateusz & Brooks, Jonathan & Taylor, J. Edward, 2012. "Modeling the Welfare Impacts of Agricultural Policies in Developing Countries," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125105, International Association of Agricultural Economists.
  2. Clovis Freire & Alberto Isgut, . "High Food and Oil Prices and Their Impact on the Achievement of MDG 1 in Asia and the Pacific," MPDD Working Paper Series WP/11/18, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  3. Pedro Conceição & Sebastian Levine & Zuzana Brixiova, 2011. "The Food Price Spikes of 2008/09 and 2010/11: Impacts and Policies in African Countries," Working Papers 2011-003, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  4. Omilola, Babatunde & Lambert, Melissa, 2010. "Weathering the storm," IFPRI discussion papers 965, International Food Policy Research Institute (IFPRI).
  5. Kumar, Neha & Quisumbing, Agnes R., 2011. "Gendered impacts of the 2007-08 food price crisis: Evidence using panel data from rural Ethiopia," IFPRI discussion papers 1093, International Food Policy Research Institute (IFPRI).
  6. José Cuesta & Suzanne Duryea & Fidel Jaramillo & Marcos Robles, 2010. "Distributive impacts of the food price crisis in the Andean region," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 846-865.
  7. von Braun, Joachim & Tadesse, Getaw, 2012. "Global Food Price Volatility and Spikes: An Overview of Costs, Causes, and Solutions," Discussion Papers 120021, University of Bonn, Center for Development Research (ZEF).
  8. Headey, Derek, 2011. "Was the global food crisis really a crisis?: Simulations versus self-reporting," IFPRI discussion papers 1087, International Food Policy Research Institute (IFPRI).
  9. Alam, Mohammad Jahangir & Buysse, Jeroen & McKenzie, Andrew M. & Wailes, Eric J. & Van Huylenbroeck, Guido, 2010. "Linkage between World and Domestic Prices of Rice under the regime of Agricultural Trade Liberalization in Bangladesh," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 58878, Australian Agricultural and Resource Economics Society.
  10. Headey, Derek D. & Malaiyandi, Sangeetha & Fan, Shenggen, 2009. "Navigating the Perfect Storm: Reflections on the Food, Energy, and Financial Crises," 2009 Conference, August 16-22, 2009, Beijing, China 53212, International Association of Agricultural Economists.
  11. Diao, Xinshen & Kennedy, Adam & Mabiso, Athur & Pradesha, Angga, 2013. "Economywide impact of maize export bans on agricultural growth and household welfare in Tanzania: A Dynamic Computable General Equilibrium Model Analysis:," IFPRI discussion papers 1287, International Food Policy Research Institute (IFPRI).
  12. Akramov, Kamiljon T. & Shreedhar, Ganga, 2012. "Economic development, external shocks, and food security in Tajikistan:," IFPRI discussion papers 1163, International Food Policy Research Institute (IFPRI).
  13. Min Bahadur Shrestha Ph.D. & Shashi Kant Chaudhary, 2012. "The Impact of Food Inflation on Poverty in Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 24(2), pages 1-14, October.
  14. Dawe, David & Maltsoglou, Irini, 2014. "Marketing margins and the welfare analysis of food price shocks," Food Policy, Elsevier, vol. 46(C), pages 50-55.
  15. Boysen, Ole & Matthews, Alan, 2012. "The differentiated effects of food price spikes on poverty in Uganda," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122445, European Association of Agricultural Economists.
  16. Jonasson, Erik & Filipski, Mateusz & Brooks, Jonathan & Taylor, J. Edward, 2012. "Modeling the Welfare Implications of Agricultural Policies in Developing Countries," Working Papers 2012:11, Lund University, Department of Economics.

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