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Price trends and income inequalities: will Sub-Saharan-Africa reduce the gap?

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  • Caracciolo, Francesco
  • Santeramo, Fabio Gaetano

Abstract

During the past decade, commodities prices have risen substantially and the trend is likely to persist as attested by recent OECD-FAO projections. The recent debate has not reached a clear consensus on the effects of this trend on poverty and income inequality in LDCs, thus complicating the policy planning process. Our paper aims at analyzing the likely welfare and income inequality impacts of food price trends in three Sub-Saharan countries, namely Tanzania, Ghana and Ethiopia. Moreover, we test the statistical significance of changes in income inequalities. Despite Tanzania is not affected, we find that price changes tend to exacerbate the income inequalities in Ethiopia and Ghana, especially for specific groups of households: the policy implications are relevant. Finally, our paper underlines the relevance of statistical inference in analysis on income inequalities, to conclude on welfare and inequalities effects of food price movements.

Suggested Citation

  • Caracciolo, Francesco & Santeramo, Fabio Gaetano, 2012. "Price trends and income inequalities: will Sub-Saharan-Africa reduce the gap?," MPRA Paper 45196, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:45196
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    Cited by:

    1. Stephan Klasen & Nathalie Scholl & Rahul Lahoti & Sophie Ochmann & Sebastian Vollmer, 2016. "Inequality – Worldwide Trends and Current Debates," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 209, Courant Research Centre PEG.
    2. Simplice Asongu & Uchenna Efobi & Ibukun Beecroft, 2015. "Inclusive Human Development in Pre-crisis Times of Globalization-driven Debts," African Development Review, African Development Bank, vol. 27(4), pages 428-442, December.
    3. Tedesco, Ilaria & Pelloni, Alessandra & Trovato, Giovanni, 2015. "Oecd Agricultural Subsidies And Poverty Rates In Lower Income Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 2), pages 1-19, April.
    4. Shabnam, Nadia & Santeramo, Fabio Gaetano & Seccia, Antonio & Asghar, Zahid, 2016. "The Impact of the Food Price Crises on the demand for nutrients in Pakistan," MPRA Paper 72971, University Library of Munich, Germany.
    5. Santeramo, Fabio Gaetano & Carlucci, Domenico & De Devitiis, Biagia & Seccia, Antonio & Stasi, Antonio & Viscecchia, Rosaria & Nardone, Gianluca, 2017. "Emerging trends in European food, diets and food industry," MPRA Paper 82105, University Library of Munich, Germany.
    6. repec:oup:jafrec:v:27:y:2018:i:1:p:127-148. is not listed on IDEAS
    7. Asongu, Simplice, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," MPRA Paper 71175, University Library of Munich, Germany.
    8. Santeramo, Fabio Gaetano, 2014. "On the composite indicators for food security: Decisions matter!," MPRA Paper 58955, University Library of Munich, Germany.
    9. Francesco CARACCIOLO & Elisabetta GOTOR & Fabio Gaetano SANTERAMO, 2014. "European Common Agricultural Policy Impacts On Developing Countries Commodities Prices," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    10. Nadia Shabnam & Fabio Gaetano Santeramo & Zahid Asghar & Antonio Seccia, 2016. "The Impact of Food Price Crises on the Demand for Nutrients in Pakistan," Journal of South Asian Development, , vol. 11(3), pages 305-327, December.
    11. Carman, Katherine Grace & Zamarro, Gema, 2016. "Does Financial Literacy Contribute To Food Security?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 1), pages 1-19, January.
    12. Santeramo, Fabio Gaetano, 2016. "Methodological challenges in building composite indexes: Linking theory to practice," MPRA Paper 73276, University Library of Munich, Germany.

    More about this item

    Keywords

    Sub-Saharan-Africa; Price effects; Welfare; Income Inequality; Generalized Entropy;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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