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Household Exposure to Food Price Shocks in Rural Bangladesh

Author

Listed:
  • Hanan G. Jacoby

    (World Bank)

  • Basab Dasgupta

    (World Bank)

Abstract

Recent food price volatility has led to concerns about the exposure of the rural poor in Bangladesh to food price shocks. Yet, higher prices could also lead to improved terms of trade for sellers and higher rural wages for agricultural workers, both of which are likely to benefit the poor from rural areas. Our analysis shows that rural wages in Bangladesh responded positively to higher crop prices over the last decade. Moreover, using a general-equilibrium-consistent welfare index that accounts for such wage gains, we show that far from falling hardest on the poor the burden of higher food prices has been closer to being distributionally neutral.

Suggested Citation

  • Hanan G. Jacoby & Basab Dasgupta, 2014. "Household Exposure to Food Price Shocks in Rural Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(1-2), pages 83-100.
    • Handle: RePEc:ris:badest:0570
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    References listed on IDEAS

    as
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    4. 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.
    5. Boyce, James K & Ravallion, Martin, 1991. "A Dynamic Econometric Model of Agricultural Wage Determination in Bangladesh," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 361-376, November.
    6. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
    7. Rashid, Shahidur, 2002. "Dynamics of agricultural wage and rice price in Bangladesh: a re-examination," MSSD discussion papers 44, International Food Policy Research Institute (IFPRI).
    8. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
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    Cited by:

    1. Martin Rama & Pradeep K. Mitra & Tara Béteille & John Lincoln Newman & Yue Li, 2015. "Addressing Inequality in South Asia," World Bank Publications - Books, The World Bank Group, number 20395, April.
    2. World Bank, 2013. "Bangladesh - Poverty Assessment : Assessing a Decade of Progress in Reducing Poverty, 2000-2010," World Bank Publications - Reports 16622, The World Bank Group.

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    More about this item

    Keywords

    Poverty; Food Security; Food Prices; Bangladesh;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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