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Impact of Global Food Price Escalation on Poverty in South Asian Countries

Author

Listed:
  • Muhammad Abdullah

    (Assistant Professor of Economics, Govt. Post Graduate College, Sahiwal)

  • Rukhsana Kalim

    (Dean, School of Business and Economics, University of Management and Technology (UMT), Lahore)

Abstract

The objective of this paper is to examine the impact of global food price escalation on poverty in South Asian countries since 1990 to 2011. Panel data procedure has been applied for empirical analysis. Panel unit root tests have been utilised before the application of panel co-integration. Poverty is measured through revealed behaviour approach which is considered better than other approaches, as it is based on the actual consumption made by the households. The present study uses actual average household consumption to measure poverty. Empirical results reveal that global food price escalation and per capita income positively and significantly affect average household consumption, which is the clear indication of poverty decline. International oil prices and interest rate significantly but negatively affect the average household consumption in South Asian countries. Findings of this study will be helpful for formulating effective public policies for poverty reduction in the era of trade liberalisation.

Suggested Citation

  • Muhammad Abdullah & Rukhsana Kalim, 2016. "Impact of Global Food Price Escalation on Poverty in South Asian Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 543-559.
    • Handle: RePEc:pid:journl:v:55:y:2016:i:4:p:543-559
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    File URL: http://www.pide.org.pk/pdf/PDR/2016/Volume4/543-559.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Food Price Escalation; Poverty; Oil Prices; Per Capita Income; South Asia;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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