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International food prices and poverty in Indonesia

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Author Info

  • Peter Warr

    ()

  • Arief Anshory Yusuf

    ()

Abstract

This 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, multihousehold 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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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2009/wp_econ_2009_19.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2009-19.

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Length: 46 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:pas:papers:2009-19

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Keywords: Indonesia; food prices; poverty incidence; general equilibrium modeling;

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References

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  1. Peter Warr, 2008. "World food prices and poverty incidence in a food exporting country: a multihousehold general equilibrium analysis for Thailand," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 525-537, November.
  2. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Papers 9909, Laval - Recherche en Politique Economique.
  3. Yusuf, Arief Anshory, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," MPRA Paper 1730, University Library of Munich, Germany.
  4. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), December.
  5. Fane, George & Warr, Peter G., 2002. "How Economic Growth Reduces Poverty: A General Equilibrium Analysis for Indonesia," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre.
  7. George Fane & Peter Warr, 2008. "Agricultural Protection In Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 44(1), pages 133-150.
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Cited by:
  1. Teguh, Dartanto, 2010. "Volatility of world rice prices, import tariffs and poverty in Indonesia: a CGE-microsimulation analysis," MPRA Paper 31451, University Library of Munich, Germany.
  2. Warr, Peter G., 2012. "Research and agricultural productivity in Indonesia," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124475, Australian Agricultural and Resource Economics Society.

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