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Agricultural Price Distortions, Poverty, and Inequality in the Philippines

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  • Caesar B Cororaton
  • Erwin Corong
  • John Cockburn

Abstract

This paper analyzes the poverty and inequality implications of removing agricultural and non-agricultural price distortions in the domestic market of the Philippines and abroad. Liberalization in the rest of the world is poverty and inequality reducing, whereas full domestic liberalization increases national poverty and inequality. Poverty declines while inequality increases marginally in the combined scenario of both global and domestic agriculture reform. Although the reduction in the national poverty headcount is small in the latter scenario, the poorest of the poor – particularly those living in the rural areas – emerge as “winners”, given their strong reliance on agricultural production and unskilled labor wages.
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Suggested Citation

  • Caesar B Cororaton & Erwin Corong & John Cockburn, 2009. "Agricultural Price Distortions, Poverty, and Inequality in the Philippines," World Bank Publications - Reports 28178, The World Bank Group.
    • Handle: RePEc:wbk:wboper:28178
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    References listed on IDEAS

    as
    1. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    2. Austria, Myrna S., 2001. "Liberalization and Regional Integration: The Philippines' Strategy to Global Competitiveness," Discussion Papers DP 2001-09, Philippine Institute for Development Studies.
    3. Rafaelita M. Aldaba, 2005. "Policy Reversals, Lobby Groups and Economic Distortions," Trade Working Papers 22312, East Asian Bureau of Economic Research.
    4. David, Cristina C. & Intal, Ponciano & Balisacan, Arsenio M., 2007. "Distortions to Agricultural Incentives in the Philippines," Agricultural Distortions Working Paper Series 48477, World Bank.
    5. Corong, Erwin & Cororaton, Caesar B., 2009. "Philippine agricultural and food policies: Implications for poverty and income distribution," Research reports 161, International Food Policy Research Institute (IFPRI).
    6. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    7. Austria, Myrna S. Author_Email:, 2001. "Liberalization and Regional Integration: The Philippines’ Strategy for Global Competitiveness," Philippine Journal of Development, Philippine Institute for Development Studies.
    8. Medalla, Erlinda M. & Austria, Myrna S., 1996. "A Study on the Trade and Investment Policies of Developing Countries: The Case of the Philippines," Discussion Papers DP 1996-03, Philippine Institute for Development Studies.
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