IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2018-32.html
   My bibliography  Save this paper

When It Rains, It Pours? Analyzing the Rainfall Shocks-Poverty Nexus in the Philippines

Author

Listed:
  • Baje, Lora Kryz
  • Bayudan-Dacuycuy, Connie

Abstract

Given the evidence that points to climate change resulting in altered patterns of weather parameters and given that the Philippines is one of the most vulnerable countries to climatic shifts, this paper aims to contribute to poverty studies in the Philippines by analyzing the poverty-rainfall shock nexus. The paper finds that rainfall shocks affect wages and income, which in turn, affect chronic total and chronic food poverty. Given that local government units (LGUs) are in the forefront of the country’s fight against the adverse effects of climate change, some policy directions are forwarded so that LGUs can better address issues on climate change, including the development of climate-smart agriculture and additional funding sources for projects on climate change adaptation. Partly due to exclusion errors, there are deserving households that are not part of the Pantawid Pamilyang Pilipino Program (4Ps). Suggestions are forwarded not only to improve the 4Ps’ data management to accommodate vertical scale-up but also to ensure that the program covers deserving beneficiaries as well. Policy directions on the development of adaptive social protection are also forwarded.

Suggested Citation

  • Baje, Lora Kryz & Bayudan-Dacuycuy, Connie, 2018. "When It Rains, It Pours? Analyzing the Rainfall Shocks-Poverty Nexus in the Philippines," Discussion Papers DP 2018-32, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2018-32
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/when-it-rains-it-pours-analyzing-the-rainfall-shocks-poverty-nexus-in-the-philippines
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    2. Anne T. Kuriakose & Rasmus Heltberg & William Wiseman & Cecilia Costella & Rachel Cipryk & Sabine Cornelius, 2013. "Climate-Responsive Social Protection," Development Policy Review, Overseas Development Institute, vol. 31, pages 19-34, November.
    3. Connie Bayudan-Dacuycuy, 2013. "The Influence of Living with Parents on Women's Decision-Making Participation in the Household: Evidence from the Southern Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 641-656, May.
    4. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    5. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    6. Mansur, Erin T. & Mendelsohn, Robert & Morrison, Wendy, 2008. "Climate change adaptation: A study of fuel choice and consumption in the US energy sector," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 175-193, March.
    7. Emmanuel Skoufias & Roy S. Katayama & B. Essama-Nssah, 2012. "Too little too late: welfare impacts of rainfall shocks in rural Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(3), pages 351-368, December.
    8. Javier E. Baez & Leonardo Lucchetti & Maria E. Genoni & Mateo Salazar, 2017. "Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 53(8), pages 1253-1271, August.
    9. Dacuycuy, Connie B., 2017. "Energy Consumption, Weather Variability, and Gender in the Philippines: A Discrete/Continuous Approach," Discussion Papers DP 2017-06, Philippine Institute for Development Studies.
    10. Wolpin, Kenneth I, 1982. "A New Test of the Permanent Income Hypothesis: The Impact of Weather on the Income and Consumption of Farm Households in India," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 583-594, October.
    11. Christian D. Mina & Katsushi S. Imai, 2017. "Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 53(12), pages 2118-2144, December.
    12. Noy, Ilan & Vu, Tam Bang, 2010. "The economics of natural disasters in a developing country: The case of Vietnam," Journal of Asian Economics, Elsevier, vol. 21(4), pages 345-354, August.
    13. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    14. Olivier Deschênes & Michael Greenstone, 2007. "The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather," American Economic Review, American Economic Association, vol. 97(1), pages 354-385, March.
    15. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    16. Thomas, Timothy & Christiaensen, Luc & Do, Quy Toan & Trung, Le Dang, 2010. "Natural disasters and household welfare : evidence from Vietnam," Policy Research Working Paper Series 5491, The World Bank.
    17. Arsenio Balisacan & Rosemarie Edillon, 2005. "Poverty Targeting in the Philippines," Chapters, in: John Weiss (ed.), Poverty Targeting in Asia, chapter 6, Edward Elgar Publishing.
    18. Bayani-Arias, Jaimmie Kim & Pulanca-Tan, Rosalina, 2017. "Analyzing the Relationship Between Exposure to Extreme Weather and Economic Inequality in the Philippines," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 3(1), June.
    19. Safir, Abla & Piza, Sharon Faye & Skoufias, Emmanuel, 2013. "Disquiet on the weather front : the welfare impacts of climatic variability in the rural Philippines," Policy Research Working Paper Series 6579, The World Bank.
    20. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family size, household shocks and chronic and transient poverty in the Philippines," Journal of Asian Economics, Elsevier, vol. 29(C), pages 101-112.
    21. Jose Ramon G. Albert & Connie Dacuycuy, 2017. "Evaluation and Assessment of the Effectiveness of the DSWD Internal and External Convergence as Operationalized by the Regional, Provincial, and City/Municipality Action Teams," Working Papers id:12299, eSocialSciences.
    22. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    23. Samuelson, Paul A, 1974. "Complementarity-An Essay on the 40th Anniversary of the Hicks-Allen Revolution in Demand Theory," Journal of Economic Literature, American Economic Association, vol. 12(4), pages 1255-1289, December.
    24. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
    25. Skoufias, Emmanuel & Vinha, Katja & Conroy, Hector V., 2011. "The impacts of climate variability on welfare in rural Mexico," Policy Research Working Paper Series 5555, The World Bank.
    26. Connie Bayudan-Dacuycuy & Joseph Lim, 2014. "Chronic and Transient Poverty and Vulnerability to Poverty in the Philippines: Evidence Using a Simple Spells Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 389-413, August.
    27. David I. Levine & Dean Yang, 2014. "The Impact of Rainfall on Rice Output in Indonesia," NBER Working Papers 20302, National Bureau of Economic Research, Inc.
    28. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family Size, Household Shocks and Chronic and Transient Poverty in the Philippine Households," MPRA Paper 64739, University Library of Munich, Germany.
    29. Agnes R. Quisumbing & John A. Maluccio, 2003. "Resources at Marriage and Intrahousehold Allocation: Evidence from Bangladesh, Ethiopia, Indonesia, and South Africa," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 283-327, July.
    30. Handa, Sudhanshu, 1996. "Expenditure behavior and children's welfare: An analysis of female headed households in Jamaica," Journal of Development Economics, Elsevier, vol. 50(1), pages 165-187, June.
    31. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    32. repec:phd:dpaper:dp_2016-10_(revised is not listed on IDEAS
    33. Albert, Jose Ramon G. & Dacuycuy, Connie B., 2017. "Evaluation and Assessment of the Effectiveness of the DSWD Internal and External Convergence as Operationalized by the Regional, Provincial, and City/Municipal Action Teams," Discussion Papers DP 2017-32, Philippine Institute for Development Studies.
    34. Hallegatte, Stephane & Fay, Marianne & Barbier, Edward B., 2018. "Poverty and climate change: introduction," Environment and Development Economics, Cambridge University Press, vol. 23(3), pages 217-233, June.
    35. Haddad, Lawrence & Ahmed, Akhter, 2003. "Chronic and Transitory Poverty: Evidence from Egypt, 1997-99," World Development, Elsevier, vol. 31(1), pages 71-85, January.
    36. Asian Development Bank Institute, 2017. "A Region at Risk: The Human Dimensions of Climate Change in Asia and the Pacific," Working Papers id:11878, eSocialSciences.
    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. Litao Feng & Wei Liu & Zhihui Zhao & Yining Wang, 2023. "Rainfall fluctuations and rural poverty: Evidence from Chinese county‐level data," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(3), pages 633-656, July.

    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. Connie Bayudan-Dacuycuy & Lora Baje, 2017. "Chronic and Transient Poverty and Weather Variability in the Philippines: Evidence Using Components Approach," Working Papers id:12072, eSocialSciences.
    2. Dacuycuy, Connie B., 2016. "Weather Events and Welfare in the Philippine Households," Research Paper Series DP 2016-34, Philippine Institute for Development Studies.
    3. Dacuycuy, Connie B., 2016. "Weather Events and Welfare in the Philippine Households," Discussion Papers DP 2016-34, Philippine Institute for Development Studies.
    4. Dacuycuy, Connie B. & Baje, Lora Kryz, 2017. "Chronic Food Poverty in the Philippines," Discussion Papers DP 2017-25, Philippine Institute for Development Studies.
    5. Stéphane Hallegatte & Adrien Vogt-Schilb & Julie Rozenberg & Mook Bangalore & Chloé Beaudet, 2020. "From Poverty to Disaster and Back: a Review of the Literature," Economics of Disasters and Climate Change, Springer, vol. 4(1), pages 223-247, April.
    6. Connie B. Dacuycuy, 2019. "Energy consumption, weather fluctuation, and household composition in the Philippines," Economics Bulletin, AccessEcon, vol. 39(1), pages 380-394.
    7. Connie Bayudan-Dacuycuy & Joseph Lim, 2014. "Chronic and Transient Poverty and Vulnerability to Poverty in the Philippines: Evidence Using a Simple Spells Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 389-413, August.
    8. Purwono, Rudi & Wardana, Wahyu Wisnu & Haryanto, Tri & Khoerul Mubin, M., 2021. "Poverty dynamics in Indonesia: empirical evidence from three main approaches," World Development Perspectives, Elsevier, vol. 23(C).
    9. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family Size, Household Shocks and Chronic and Transient Poverty in the Philippine Households," MPRA Paper 64739, University Library of Munich, Germany.
    10. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family size, household shocks and chronic and transient poverty in the Philippines," Journal of Asian Economics, Elsevier, vol. 29(C), pages 101-112.
    11. Dacuycuy, Connie B., 2017. "Energy Consumption, Weather Variability, and Gender in the Philippines: A Discrete/Continuous Approach," Discussion Papers DP 2017-06, Philippine Institute for Development Studies.
    12. Hallegatte,Stephane & Bangalore,Mook & Jouanjean,Marie Agnes, 2016. "Higher losses and slower development in the absence of disaster risk management investments," Policy Research Working Paper Series 7632, The World Bank.
    13. World Bank, 2012. "The Welfare Effects of Extreme Weather Events : Insights from Three APEC Case Studies," World Bank Publications - Reports 13039, The World Bank Group.
    14. Muhammad Masood Azeem & Amin W. Mugera & Steven Schilizzi & Kadambot H. M. Siddique, 2017. "An Assessment of Vulnerability to Poverty in Punjab, Pakistan: Subjective Choices of Poverty Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 117-152, October.
    15. Karim, Azreen & Noy, Ilan, 2014. "Poverty and natural disasters: A meta-analysis," Working Paper Series 3234, Victoria University of Wellington, School of Economics and Finance.
    16. Connie Bayudan-Dacuycuy & Lora Kryz Baje, 2017. "Intersecting Weather Variability And Chronic Food Poverty," Working Papers id:12307, eSocialSciences.
    17. Karim, Azreen & Noy, Ilan, 2014. "Poverty and natural disasters: A meta-analysis," Working Paper Series 18823, Victoria University of Wellington, School of Economics and Finance.
    18. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    19. Ira N. Gang & Kseniia Gatskova & John Landon-Lane & Myeong-Su Yun, 2018. "Vulnerability to Poverty: Tajikistan During and After the Global Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 925-951, August.
    20. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.

    More about this item

    Keywords

    Philippines; components approach; chronic poverty; transient poverty; rainfall shock;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    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:phd:dpaper:dp_2018-32. 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: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.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.