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

Author

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  • Sobrevinas, Alellie B.
  • de Jesus, Jeremy
  • Reyes, Celia M.
  • Bancolita, Joel E.

Abstract

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 counterproductive 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 nonpoor as well as ensure that the poor benefit from these programs.

Suggested Citation

  • Sobrevinas, Alellie B. & de Jesus, Jeremy & Reyes, Celia M. & Bancolita, Joel E., 2009. "Analysis of the Impact of Changes in the Prices of Rice and Fuel on Poverty in the Philippines," Discussion Papers DP 2009-07, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2009-07
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
    4. 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.
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    Citations

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    Cited by:

    1. Mehta, Aashish & Jha, Shikha & Quising, Pilipinas, 2013. "Self-targeted food subsidies and voice: Evidence from the Philippines," Food Policy, Elsevier, pages 204-217.
    2. Borines, M.G. & de Leon, R.L. & McHenry, M.P., 2011. "Bioethanol production from farming non-food macroalgae in Pacific island nations: Chemical constituents, bioethanol yields, and prospective species in the Philippines," Renewable and Sustainable Energy Reviews, Elsevier, pages 4432-4435.
    3. Mehta, Aashish & Jha, Shikha, 2014. "Pilferage from opaque food subsidy programs: Theory and evidence," Food Policy, Elsevier, pages 69-79.

    More about this item

    Keywords

    poverty; impact analysis; community-based monitoring system; rice; prices; fuel; coping mechanisms; pass-through rates; net benefit ratio;

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