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Price Trends and Income Inequalities: Will Sub-Saharan Africa Reduce the Gap?

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  • Francesco Caracciolo
  • Fabio Gaetano Santeramo

Abstract

During the past decade, commodities prices have risen substantially and the trend is likely to persist as attested by recent OECD-FAO projections. The recent debate has not reached a clear consensus on the effects of this trend on poverty and income inequality in LDCs, thus complicating the policy planning process. Our paper aims at analyzing the likely welfare and income inequality impacts of food price trends in three Sub-Saharan countries, namely Tanzania, Ghana and Ethiopia. Moreover, we test the statistical significance of changes in income inequalities. Despite Tanzania is not affected, we find that price changes tend to exacerbate the income inequalities in Ethiopia and Ghana, especially for specific groups of households: the policy implications are relevant. Finally, our paper underlines the relevance of statistical inference in analysis on income inequalities, to conclude on welfare and inequalities effects of food price movements.
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  • Francesco Caracciolo & Fabio Gaetano Santeramo, 2013. "Price Trends and Income Inequalities: Will Sub-Saharan Africa Reduce the Gap?," African Development Review, African Development Bank, vol. 25(1), pages 42-54, March.
    • Handle: RePEc:bla:afrdev:v:25:y:2013:i:1:p:42-54
    DOI: 10.1111/j.1467-8268.2013.12012.x
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    2. Asongu, Simplice, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," MPRA Paper 71175, University Library of Munich, Germany.
    3. Tedesco, Ilaria & Pelloni, Alessandra & Trovato, Giovanni, 2015. "Oecd Agricultural Subsidies And Poverty Rates In Lower Income Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-19, April.
    4. Afesorgbor, S. Kwaku & Kornher, Lukas & Santeramo, Fabio, 2023. "The impacts of economic sanctions on food (prices) security: Evidence from targeted countries," 2023: The Future of (Ag-) Trade and Trade Governance in Times of Economic Sanctions and Declining Multilateralism, December 10-12, Clearwater Beach, FL 339511, International Agricultural Trade Research Consortium.
    5. Santeramo, Fabio Gaetano, 2014. "On the composite indicators for food security: Decisions matter!," MPRA Paper 58955, University Library of Munich, Germany.
    6. Nadia Shabnam & Fabio Gaetano Santeramo & Zahid Asghar & Antonio Seccia, 2016. "The Impact of Food Price Crises on the Demand for Nutrients in Pakistan," Journal of South Asian Development, , vol. 11(3), pages 305-327, December.
    7. Simplice A. Asongu, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Research Africa Network Working Papers 15/054, Research Africa Network (RAN).
    8. Santeramo, Fabio Gaetano & Carlucci, Domenico & De Devitiis, Biagia & Seccia, Antonio & Stasi, Antonio & Viscecchia, Rosaria & Nardone, Gianluca, 2017. "Emerging trends in European food, diets and food industry," MPRA Paper 82105, University Library of Munich, Germany.
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    10. Carman, Katherine Grace & Zamarro, Gema, 2016. "Does Financial Literacy Contribute To Food Security?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(1), pages 1-19, January.
    11. Fabio Gaetano Santeramo & Emilia Lamonaca, 2021. "Food Loss–Food Waste–Food Security: A New Research Agenda," Sustainability, MDPI, vol. 13(9), pages 1-7, April.
    12. Saifullahi Sani Ibrahim & Haruna Mohammad Aliero, 2020. "Testing the impact of financial inclusion on income convergence: Empirical evidence from Nigeria," African Development Review, African Development Bank, vol. 32(1), pages 42-54, March.
    13. Arne Bigsten, 2018. "Determinants of the Evolution of Inequality in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 27(1), pages 127-148.
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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