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Analysis of the Impact of Changes in the Prices of Rice and Fuel on Poverty in the Philippines

  • Celia M. Reyes

    (PIDS)

  • Alellie B. Sobrevinas
  • Joel Bancolita
  • Jeremy de Jesus
Registered author(s):

    The study aims to assess the impact of rising prices of rice and fuel on poverty in the Philippines. In particular, the variations in the potential effects among different group of households were analyzed using household level data. Results of the study confirm that the impact of increasing prices of rice and fuel vary across different groups of households depending on the sector of employment, level of urbanity, income group and geographical location. In fact, there are losers and gainers from the recent increases in the prices of rice and fuel. In response to higher prices, households adopted different coping mechanisms, some of which are damaging and counter-productive in the medium- and long-run. The Philippine government has also responded by implementing programs that would mitigate the negative impact of soaring prices. It is recommended that household level data for all households in the community, such as those being generated by the community-based monitoring system (CBMS) being implemented by local government units, be used to identify eligible beneficiaries through some proxy means test model. This would help reduce leakage of program benefits to the non-poor as well as ensure that the poor benefit from these programs.

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    File URL: http://www.eaber.org/node/22687
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    Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22687.

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    Date of creation: Jan 2009
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    Handle: RePEc:eab:develo:22687
    Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org

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    1. 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.
    2. Ponciano S. Intal Jr. & Marissa C. Garcia, 2005. "Rice and Philippine Politics," Development Economics Working Papers 22637, East Asian Bureau of Economic Research.
    3. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
    4. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
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