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Assessing the potential impact on poverty of rising cereals prices : the case of Ghana

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Author Info
Wodon, Quentin
Tsimpo, Clarence
Coulombe, Harold

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Abstract

Concerns have been raised about the impact of rising food prices worldwide on the poor. To assess the (short term) impact of rising food prices in any particular country it is necessary to look at both the impact on food producers (who benefit from an increase in prices) and food consumers (who loose out when the price increases), with a focus on poor producers and consumers. In Ghana, the impact of a change in the price of rice is not ambiguous because a large share of the rice consumed is imported, so that the negative impact for consumers is much larger than the positive impact for producers. For maize by contrast, the impact is ambiguous since much of the consumption is locally produced. Using a recent and comprehensive household survey, this paper provides an assessment of the potential impact of higher food prices on the poor in Ghana using both simple statistical analysis and non-parametric methods. The paper finds that rising food prices for rice, maize, and other cereals would together lead to an increase in poverty, but that by contrastto a number of other countries, this increase, while not negligible, may not be as large as feared.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4740.

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Date of creation: 01 Oct 2008
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Handle: RePEc:wbk:wbrwps:4740

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Related research
Keywords: Rural Poverty Reduction; Population Policies; Food&Beverage Industry; Achieving Shared Growth;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 11810, University Library of Munich, Germany. [Downloadable!]
  2. 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. [Downloadable!]
  3. C. Peter Timmer & David Dawe, 2007. "Managing Food Price Instability in Asia: A Macro Food Security Perspective ," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 1-18, 03. [Downloadable!] (restricted)
  4. Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299. [Downloadable!] (restricted)
  5. Peter Warr, 2005. "Food Policy And Poverty In Indonesia: A General Equilibrium Analysis," Departmental Working Papers 2005-03, Australian National University, Economics RSPAS. [Downloadable!]
  6. Sudarno Sumarto & Asep Suryahadi & Wenefrida Widyanti, 2004. "Assessing the Impact of Indonesian Social Safety Net Programs on Household Welfare and Poverty Dynamics," Development Economics Working Papers 108, East Asian Bureau of Economic Research. [Downloadable!]
  7. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank. [Downloadable!]
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