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The Impact of Rising Food Prices on the Poor

Author

Listed:
  • Zezza, Alberto
  • Davis, Benjamin
  • Azzarri, Carlo
  • Covarrubias, Katia
  • Tasciotti, Luca
  • Anriquez, Gustavo

Abstract

This paper analyzes the household level impact of an increase in price of major tradable staple foods in a cross section of developing countries, using nationally representative household surveys. We find that, in the short term, poorer households and households with limited asset endowments and access to agricultural inputs will be hit the hardest by the price shock. Given the ample degree of heterogeneity among households and among the poor, the analysis emphasizes the importance of meaningful policy research to go beyond average impacts to look at how access to assets and inputs, livelihood strategies and other key household characteristics drive the magnitude and distribution of the effects of the price increases.

Suggested Citation

  • Zezza, Alberto & Davis, Benjamin & Azzarri, Carlo & Covarrubias, Katia & Tasciotti, Luca & Anriquez, Gustavo, 2009. "The Impact of Rising Food Prices on the Poor," 2009 Conference, August 16-22, 2009, Beijing, China 51696, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51696
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    File URL: http://ageconsearch.umn.edu/record/51696/files/Zezza%20et%20al%20IAAE-2.pdf
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    Other versions of this item:

    • Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008. "The Impact of Rising Food Prices on the Poor," Working Papers 08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

    References listed on IDEAS

    as
    1. Zezza, Alberto & Winters, Paul C. & Davis, Benjamin & Carletto, Calogero & Covarrubias, Katia & Quinones, Esteban & Stamoulis, Kostas G. & Di Giuseppe, Stefania, 2007. "Rural Household Access to Assets and Agrarian Institutions: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7925, European Association of Agricultural Economists.
    2. Sébastien Dessus & Santiago Herrera & Rafael de Hoyos, 2008. "The impact of food inflation on urban poverty and its monetary cost: some back-of-the-envelope calculations," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 417-429, November.
    3. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
    4. 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.
    5. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    6. 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.
    7. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
    8. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    10. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
    11. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
    12. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-585, July.
    13. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49314, Agricultural and Applied Economics Association.
    14. 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.
    15. Quisumbing, Agnes & Pandolfelli, Lauren, 2008. "Promising approaches to address the needs of poor female farmers:," Research briefs 13, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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