IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1284.html
   My bibliography  Save this paper

The impact of food prices shocks in Uganda: First-order versus long-run effects:

Author

Listed:
  • Van Campenhout, Bjorn
  • Pauw, Karl
  • Minot, Nicholas

Abstract

We look at the immediate effects of these shocks faced by households in Uganda on their poverty and well-being. In addition, we look at the economywide impact in the long run when all markets have settled at a new equilibrium. We find that in the short run, poverty has increased substantially. However, in the longer run, we find welfare levels of rural farm households in particular to rise sharply, primarily as a result of increased returns to farm labor and agricultural land coupled with improved market prices for output sold.

Suggested Citation

  • Van Campenhout, Bjorn & Pauw, Karl & Minot, Nicholas, 2013. "The impact of food prices shocks in Uganda: First-order versus long-run effects:," IFPRI discussion papers 1284, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1284
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01284.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wiebelt, Manfred & Breisinger, Clemens & Ecker, Olivier & Al-Riffai, Perrihan & Robertson, Richard & Thiele, Rainer, 2011. "Climate change and floods in Yemen: Impacts on food security and options for adaptation," IFPRI discussion papers 1139, International Food Policy Research Institute (IFPRI).
    2. Matovu, John Mary & Twimukye, Evarist P., 2009. "Increasing world food prices: blessing or curse?," Research Series 54804, Economic Policy Research Centre (EPRC).
    3. Diao, Xinshen & Fan, Shenggen & Yu, Bingxin & Kanyarukiga, Sam, 2007. "Agricultural growth and investment options for poverty reduction in Rwanda," IFPRI discussion papers 689, International Food Policy Research Institute (IFPRI).
    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. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
    6. Boysen, Ole & Matthews, Alan, 2012. "The differentiated effects of food price spikes on poverty in Uganda," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122445, European Association of Agricultural Economists.
    7. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    8. 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.
    9. Channing Arndt & Rui Benfica & Nelson Maximiano & Antonio M. D. Nucifora & James T. Thurlow, 2008. "Higher fuel and food prices: impacts and responses for Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 497-511, November.
    10. Simler, Kenneth R., 2010. "The short-term impact of higher food prices on poverty in Uganda," Policy Research Working Paper Series 5210, The World Bank.
    11. 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.
    12. Van Campenhout, Bjorn & Lecoutere, Els & D'Exelle, Ben, 2011. "Trading in turbulent times: Smallholder maize marketing in the southern highlands, Tanzania," IFPRI discussion papers 1099, International Food Policy Research Institute (IFPRI).
    13. Barrett, Christopher B., 1997. "Liberalization and food price distributions: ARCH-M evidence from Madagascar," Food Policy, Elsevier, vol. 22(2), pages 155-173, April.
    14. Todd Benson & Samuel Mugarura & Kelly Wanda, 2008. "Impacts in Uganda of rising global food prices: the role of diversified staples and limited price transmission," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 513-524, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Van Campenhout, Bjorn & Bizimungu, Emmanuel & Birungi, Dorothy, 2016. "Risk and sustainable crop intensification: The case of smallholder rice and potato farmers in Uganda:," IFPRI discussion papers 1521, International Food Policy Research Institute (IFPRI).
    2. Raymond Boadi Frempong & David Stadelmann, 2019. "The Effect of Food Price Changes on Child Labour: Evidence from Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 55(7), pages 1492-1507, July.
    3. Ariane Zingiro & Julius Okello & Paul Guthiga, 2014. "Assessment of adoption and impact of rainwater harvesting technologies on rural farm household income: the case of rainwater harvesting ponds in Rwanda," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(6), pages 1281-1298, December.
    4. Campus, Daniela & Giannelli, Gianna Claudia, 2016. "Is the Allocation of Time Gender Sensitive to Food Price Changes? An Investigation of Hours of Work in Uganda," IZA Discussion Papers 10376, Institute of Labor Economics (IZA).
    5. Derek D Headey, 2018. "Food Prices and Poverty," The World Bank Economic Review, World Bank, vol. 32(3), pages 676-691.
    6. Séne, Ligane Massamba, 2014. "Heterogeneous responses to heterogeneous food price shocks in Senegal: insights from a CGE," MPRA Paper 58835, University Library of Munich, Germany.
    7. Van Campenhout, Bjorn, 2016. "Risk and Sustainable Crop Intensification," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246917, African Association of Agricultural Economists (AAAE).
    8. Shinyekwa, Isaac & Ijjo, Alex, 2016. "Determinants Of Domestic Food Price Differentials In Uganda: The Potential for and Constraints on Intra-County Trade," Research Reports 253556, Economic Policy Research Centre (EPRC).
    9. Ivanic, Maros & Martin, Will, 2014. "Short- and long-run impacts of food price changes on poverty," Policy Research Working Paper Series 7011, The World Bank.
    10. Fan, Shenggen & Pandya-Lorch, Rajul & Yosef, Sivan, 2014. "Introduction [In Resilience for food and nutrition security]," IFPRI book chapters, in: Fan, Shenggen & Pandya-Lorch, Rajul & Yosef, Sivan (ed.), 2013 Global Food Policy Report, chapter 1, International Food Policy Research Institute (IFPRI).
    11. Headey, Derek D., 2014. "Food prices and poverty reduction in the long run:," IFPRI discussion papers 1331, International Food Policy Research Institute (IFPRI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    2. Joseph Mawejje, 2016. "Food prices, energy and climate shocks in Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-18, December.
    3. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 1106, Larefi, Université Bordeaux 4.
    4. Joseph Mawejje, 2016. "Food prices, energy and climate shocks in Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-18, December.
    5. Andy McKay & Finn Tarp, 2014. "Distributional Impacts of the 2008 Global Food Price Spike in Vietnam," WIDER Working Paper Series wp-2014-030, World Institute for Development Economic Research (UNU-WIDER).
    6. Delphine Boutin, 2011. "D'une crise à l'autre : mesurer l'impact des prix alimentaires sur la pauvreté," Working Papers hal-00637608, HAL.
    7. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 201106, Larefi, Université Bordeaux 4.
    8. Anna D'Souza & Dean Jolliffe, 2012. "Rising Food Prices and Coping Strategies: Household-level Evidence from Afghanistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 282-299, August.
    9. Nora Lustig, 2009. "Coping with Rising Food Prices: Policy Dilemmas in the Developing World," Working Papers 0907, Tulane University, Department of Economics.
    10. Minot, Nicholas & Dewina, Reno, 2013. "Impact of food price changes on household welfare in Ghana:," IFPRI discussion papers 1245, International Food Policy Research Institute (IFPRI).
    11. Balié, Jean & Minot, Nicholas & Valera, Harold Glenn A., 2021. "Distributional impacts of the rice tariffication policy in the Philippines," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 289-306.
    12. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    13. Craig Sugden, 2009. "Responding to High Commodity Prices," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 79-105, May.
    14. Levin, Jörgen & Vimefall, Elin, 2015. "Welfare impact of higher maize prices when allowing for heterogeneous price increases," Food Policy, Elsevier, vol. 57(C), pages 1-12.
    15. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank.
    16. Benson, Todd & Minot, Nicholas & Pender, John & Robles, Miguel & von Braun, Joachim, 2013. "Information to guide policy responses to higher global food prices: The data and analyses required," Food Policy, Elsevier, vol. 38(C), pages 47-58.
    17. Zezza, Alberto & Davis, Benjamin & Azzarri, Carlo & Covarrubias, Katia & Tasciotti, Luca & Anríquez, Gustavo, 2008. "The impact of rising food prices on the poor," ESA Working Papers 289027, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    18. Félix Badolo & Fousseini Traore, 2012. "Impact of Rising World Rice Prices on Poverty and Inequality in Burkina Faso," CERDI Working papers halshs-00713258, HAL.
    19. Juhee Singh Verma & Pritee Sharma, 2021. "Vulnerability of Small Farmers to High Food Prices – A Case Study of Indian Farmers," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 74-88.
    20. Van Campenhout, Bjorn & Lecoutere, Els & D'Exelle, Ben, 2011. "Trading in turbulent times: Smallholder maize marketing in the southern highlands, Tanzania," IFPRI discussion papers 1099, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Food prices; Wellbeing; Poverty; Computable general equilibrium (CGE); Agricultural development; Commodities;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1284. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.