IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v43y2013i1p79-94.html

Simulating the Impact of Exogenous Food Price Shock on Agriculture and the Poor in Nigeria: Results from a Computable General Equilibrium Model

Author

Listed:
  • N.M. Nkang

    (Department of Agricultural Economics and Extension, University of Calabar, M. B. 1115, Calabar, Nigeria)

  • B.T. Omonona

    (Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria)

  • S.A. Yusuf

    (Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria)

  • O.A. Oni

    (Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria)

Abstract

Motivated by the recent global economic crisis, this paper simulated the impact of a rise in the price of imported food on agriculture and household poverty in Nigeria using a computable general equilibrium (CGE) model and the Foster, Greer and Thorbecke (FGT) class of decomposable poverty measures on the 2006 social accounting matrix (SAM) of Nigeria and the updated 2004 Nigeria Living Standards Survey (NLSS) data. Results show that a rise in import price of food increased domestic output of food, but reduced the domestic supply of other agricultural commodities as well as food and other agricultural composites. Furthermore, a rise in the import price of food increased poverty nationally and among all household groups, with rural-north households being the least affected by the shock, while their rural-south counterparts were the most affected. A major policy implication drawn from this paper is that high import prices in import competing sectors like agriculture tend to favour the sector but exacerbate poverty in households. Thus, efforts geared at addressing the impact of this shock should strive to balance welfare and efficiency issues.

Suggested Citation

  • N.M. Nkang & B.T. Omonona & S.A. Yusuf & O.A. Oni, 2013. "Simulating the Impact of Exogenous Food Price Shock on Agriculture and the Poor in Nigeria: Results from a Computable General Equilibrium Model," Economic Analysis and Policy, Elsevier, vol. 43(1), pages 79-94, March.
    • Handle: RePEc:eee:ecanpo:v:43:y:2013:i:1:p:79-94
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592613500051
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Escalante, Luis & Mamboundou, Pierre, 2024. "Adapting fiscal strategies to energy and food price shocks in Portugal," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 651-665.
    2. Henning Krause & Anja Faße & Ulrike Grote, 2019. "Nutrient-Dense Crops for Rural and Peri-Urban Smallholders in Kenya—A Regional Social Accounting Approach," Sustainability, MDPI, vol. 11(11), pages 1-22, May.
    3. Séne, Ligane Massamba, 2014. "Heterogeneous responses to heterogeneous food price shocks in Senegal: insights from a CGE," MPRA Paper 58835, University Library of Munich, Germany.
    4. Cheng, Natalie Fang Ling & Hasanov, Akram Shavkatovich & Poon, Wai Ching & Bouri, Elie, 2023. "The US-China trade war and the volatility linkages between energy and agricultural commodities," Energy Economics, Elsevier, vol. 120(C).
    5. Ikhide, Emily Edoisa & Umaru, Ezra K. & Oyebola, Fehintola & Omoju, Oluwasola E., 2021. "A CGE Analysis of the Gender Productivity Gap in Nigeria’s Agriculture Sector," 2021 Conference, August 17-31, 2021, Virtual 315922, International Association of Agricultural Economists.
    6. Idiaye, C. & Kuhn, A. & Okoruwa, V., 2018. "Minimum Wage Policy and Rural Household Welfare in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277114, International Association of Agricultural Economists.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:43:y:2013:i:1:p:79-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.