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Impacts of Rising Food Prices on Poverty and Welfare in Vietnam

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  • Vu, Linh
  • Glewwe, Paul

Abstract

In 2007 and 2008, international prices of rice and other grains sharply increased, raising fears that poor households in developing countries would become poorer. Yet, these fears often ignored that many of these poor households were food producers. This study examines the impact of rising food prices on welfare in Vietnam. Our results show that, overall, higher food prices raised the average Vietnamese household’s welfare. However, higher food prices made most households worse off. Average welfare was found to increase because the average welfare loss of households whose welfare declined (net purchasers) was smaller than the average welfare gain of those whose welfare increased (net sellers).

Suggested Citation

  • Vu, Linh & Glewwe, Paul, 2011. "Impacts of Rising Food Prices on Poverty and Welfare in Vietnam," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(1), April.
  • Handle: RePEc:ags:jlaare:105512
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    References listed on IDEAS

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    1. von Braun, Joachim, 2008. "Food and financial crises: Implications for agriculture and the poor," Food policy reports 20, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Youzhu Li & Jingbo Xia & Chongguang Li & Mingyang Zheng, 2015. "Construction of an Early-Warning System for Vegetable Prices Based on Index Contribution Analysis," Sustainability, MDPI, Open Access Journal, vol. 7(4), pages 1-15, March.
    2. Javier E. Baez & Leonardo Lucchetti & Maria E. Genoni & Mateo Salazar, 2017. "Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 53(8), pages 1253-1271, August.
    3. Gibson, John & Kim, Bonggeun, 2013. "Quality, Quantity, and Nutritional Impacts of Rice Price Changes in Vietnam," World Development, Elsevier, vol. 43(C), pages 329-340.
    4. Rita Motzigkeit Gonzalez, 2016. "Welfare effects of changed prices The “Tortilla Crisis" revisited," Working Papers 167, Bavarian Graduate Program in Economics (BGPE).
    5. García-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balié, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," DARE Discussion Papers 1611, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Ian Coxhead & Vu Hoang Linh & Le Dong Tam, 2012. "Global market shocks and poverty in Vietnam: the case of rice," Agricultural Economics, International Association of Agricultural Economists, vol. 43(5), pages 575-592, September.
    7. Gibson, John & Kim, Bonggeun, 2013. "Do the urban poor face higher food prices? Evidence from Vietnam," Food Policy, Elsevier, vol. 41(C), pages 193-203.
    8. Talbot, Theodore & Nguyen, Manh Hai, 2013. "The Political Economy of Food Price Policy: the Case of Rice Prices in Vietnam," WIDER Working Paper Series 035, World Institute for Development Economic Research (UNU-WIDER).
    9. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
    10. Matthias Kalkuhl & Mekbib Haile & Lukas Kornher & Marta Kozicka, 2015. "Cost-benefit framework for policy action to navigate food price spikes. FOODSECURE Working Paper No 33," FOODSECURE Working papers 33, LEI Wageningen UR.
    11. Tschirley, David & Myers, Robert & Zavale, Helder, 2014. "MSU/FSG Study of the Impact of WFP Local and Regional Food Aid Procurement on Markets, Households, and Food Value Chains," Food Security International Development Working Papers 184835, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Bryan, Shane, 2013. "A Cacophony of Policy Responses: Evidence from Fourteen Countries During the 2007/08 Food Price Crisis," WIDER Working Paper Series 029, World Institute for Development Economic Research (UNU-WIDER).
    13. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
    14. Balié, Jean & Magrini, Emiliano & Morales Opazo, Cristian, 2016. "Cereal price shocks and volatility in Sub-Saharan Africa: What does really matter for farmers' welfare?," DARE Discussion Papers 1607, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    15. Lohmann, Steffen & Lechtenfeld, Tobias, 2015. "The Effect of Drought on Health Outcomes and Health Expenditures in Rural Vietnam," World Development, Elsevier, vol. 72(C), pages 432-448.
    16. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).

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