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Agricultural Price Distortions, Poverty and Inequality in the Philippines

Author

Listed:
  • Cororaton, Caesar B.
  • Corong, Erwin L.
  • Cockburn, John

Abstract

This paper analyzes the poverty and inequality implications of removing agricultural and non-agricultural price distortions in the domestic market of the Philippines and abroad. Liberalization in the rest of the world is poverty and inequality reducing, whereas full domestic liberalization increases national poverty and inequality. Poverty declines while inequality increases marginally in the combined scenario of both global and domestic agriculture reform. Although the reduction in the national poverty headcount is small in the latter scenario, the poorest of the poor – particularly those living in the rural areas – emerge as “winners”, given their strong reliance on agricultural production and unskilled labor wages.

Suggested Citation

  • Cororaton, Caesar B. & Corong, Erwin L. & Cockburn, John, 2009. "Agricultural Price Distortions, Poverty and Inequality in the Philippines," Agricultural Distortions Working Paper 52790, World Bank.
  • Handle: RePEc:ags:wbadwp:52790
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    File URL: http://purl.umn.edu/52790
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    References listed on IDEAS

    as
    1. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines," MTID discussion papers 86, International Food Policy Research Institute (IFPRI).
    2. David, Cristina C. & Intal, Ponciano & Balisacan, Arsenio M., 2007. "Distortions to Agricultural Incentives in the Philippines," Agricultural Distortions Working Paper 48477, World Bank.
    3. Aldaba, Rafaelita M., 2005. "Policy Reversals, Lobby Groups and Economic Distortions," Discussion Papers DP 2005-04, Philippine Institute for Development Studies.
    4. Austria, Myrna S., 2001. "Liberalization and Regional Integration: The Philippines' Strategy to Global Competitiveness," Discussion Papers DP 2001-09, Philippine Institute for Development Studies.
    5. Medalla, Erlinda M. & Austria, Myrna S., 1996. "A Study on the Trade and Investment Policies of Developing Countries: The Case of the Philippines," Discussion Papers DP 1996-03, Philippine Institute for Development Studies.
    6. Austria, Myrna S., 2001. "Liberalization and Regional Integration: The Philippines’ Strategy for Global Competitiveness," Philippine Journal of Development PJD 2001 Vol. XXVIII No. , Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Distorted incentives; agricultural and trade policy reforms; national agricultural development; Agricultural and Food Policy; International Relations/Trade; F13; F14; Q17; Q18;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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