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Commodity price changes and their impacts on poverty in developing countries: the Brazilian case

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  • Azzoni, Carlos Roberto
  • Guilhoto, Joaquim José mantins
  • Haddad, Eduardo
  • Menezes, Tatiane
  • Silveira, Fernando
  • Hasegawa, Marcos

Abstract

The objective of the paper is to provide an estimative of the impacts that changes in international prices of agricultural commodities will have on income distribution and poverty in Brazil. To do so, a Social Accounting Matrix is constructed and applied, using a Leontief- Miyazawa type model framework. The SAM is defined for 40 products, being 17 raw agricultural products, 15 agricultural processed products, 3 industrial agricultural inputs, 2 other industrial products, trade, transport, and services. Households are allocated to 10 groups, being 6 agricultural (4 types of family farmers, commercial farmers, and agricultural labor), and 4 urban (income quartiles). Demand elasticities (price and income) for the products defined in the SAM are considered, as well as limitations on the supply of agricultural inputs. The knowledge of the possible impacts of changes in international commodity prices on income distribution and poverty is very important for policy design within developing countries. Given the estimated impacts on different groups of producers, different sorts of cushioning policies can be designed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37957.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:37957

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Keywords: Commodity Price; Brazil;

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  1. Joaquim José M. Guilhoto & Manuel Alcino R. Da Fonseca, 1987. "Uma análise dos efeitos econômicos de estratégias setoriais," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 41(1), pages 81-98, January.
  2. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais
    [Estimation of input-output matrix using preliminary data from national accounts]
    ," MPRA Paper 38212, University Library of Munich, Germany.
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  1. Commodity price changes and their impacts on poverty in developing countries: the Brazilian case
    by Maximo Rossi in Wikiprogress América Latina on 2012-04-25 20:04:00

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