Global market shocks and poverty in Vietnam: the case of rice
World food prices have experienced dramatic increases in recent years. These "shocks" affect food importers and exporters alike. Vietnam is a major exporter of rice, and rice is also a key item in domestic production, employment and consumption. Accordingly, rice price shocks from the world market have general equilibrium impacts and as such, their implications for household welfare are not known ex ante. In this paper we present a framework for understanding the direct and indirect welfare effects of a global market shock of this kind. We quantify transmission of the shock from global indicator prices to domestic markets. Then we use an applied general equilibrium model to simulate the economic effects of the price changes. A recursive mapping to a nationally representative household living standards survey permits us to identify in detail the ceteris paribus effects of the shock on household incomes and welfare. In this analysis, interregional and intersectoral labor market adjustments emerge as key channels transmitting the effects of global price shocks across sectors and among households.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: 8-9 2nd Floor, 216 Tran Quang Khai Street, Hanoi|
Web page: http://www.depocenwp.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Phan, Diep & Coxhead, Ian, 2008.
"Interprovincial Migration and Inequality During Vietnam's Transition,"
Staff Paper Series
507, University of Wisconsin, Agricultural and Applied Economics.
- Phan, Diep & Coxhead, Ian, 2010. "Inter-provincial migration and inequality during Vietnam's transition," Journal of Development Economics, Elsevier, vol. 91(1), pages 100-112, January.
- Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series 4642, The World Bank.
- Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
- Vu, Linh & Glewwe, Paul, 2011.
"Impacts of Rising Food Prices on Poverty and Welfare in Vietnam,"
Journal of Agricultural and Resource Economics,
Western Agricultural Economics Association, vol. 36(1), April.
- Linh Vu Hoang & Paul Glewwe, 2009. "Impacts of Rising Food Prices on Poverty and Welfare in Vietnam," Working Papers 13, Development and Policies Research Center (DEPOCEN), Vietnam.
- Jensen, Henning Tarp & Tarp, Finn, 2007. "A Vietnam Social Accounting Matrix (SAM) for the Year 2003," MPRA Paper 29822, University Library of Munich, Germany.
- Robert T. Jensen & Nolan H. Miller, 2008. "The impact of food price increases on caloric intake in China," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 465-476, November.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Peter Warr, 2008. "World food prices and poverty incidence in a food exporting country: a multihousehold general equilibrium analysis for Thailand," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 525-537, November.
- Engle, Robert F & Granger, Clive W J, 1987.
"Co-integration and Error Correction: Representation, Estimation, and Testing,"
Econometric Society, vol. 55(2), pages 251-76, March.
- Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
- Chris Manning, 2009. "Globalisation and Labour Markets in Boom and Crisis: The Case of Vietnam," Departmental Working Papers 2009-17, The Australian National University, Arndt-Corden Department of Economics.
- 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.
- Zahoor ul Haq & Hina Nazli & Karl Meilke, 2008. "Implications of high food prices for poverty in Pakistan," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 477-484, November.
When requesting a correction, please mention this item's handle: RePEc:dpc:wpaper:3212. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Doan Quang Hung)
If references are entirely missing, you can add them using this form.