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Assessing the potential impact on poverty of rising cereals prices : the case of Ghana

Author

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  • Wodon, Quentin
  • Tsimpo, Clarence
  • Coulombe, Harold

Abstract

Concerns have been raised about the impact of rising food prices worldwide on the poor. To assess the (short term) impact of rising food prices in any particular country it is necessary to look at both the impact on food producers (who benefit from an increase in prices) and food consumers (who loose out when the price increases), with a focus on poor producers and consumers. In Ghana, the impact of a change in the price of rice is not ambiguous because a large share of the rice consumed is imported, so that the negative impact for consumers is much larger than the positive impact for producers. For maize by contrast, the impact is ambiguous since much of the consumption is locally produced. Using a recent and comprehensive household survey, this paper provides an assessment of the potential impact of higher food prices on the poor in Ghana using both simple statistical analysis and non-parametric methods. The paper finds that rising food prices for rice, maize, and other cereals would together lead to an increase in poverty, but that by contrastto a number of other countries, this increase, while not negligible, may not be as large as feared.

Suggested Citation

  • Wodon, Quentin & Tsimpo, Clarence & Coulombe, Harold, 2008. "Assessing the potential impact on poverty of rising cereals prices : the case of Ghana," Policy Research Working Paper Series 4740, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4740
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    References listed on IDEAS

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    1. C. Peter Timmer & David Dawe, 2007. "Managing Food Price Instability in Asia: A Macro Food Security Perspective ," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 1-18, March.
    2. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), December.
    3. Klugman, Jeni & Loening, Josef, 2007. "Welfare Impacts of Food Price Inflation in Ethiopia," MPRA Paper 24892, University Library of Munich, Germany.
    4. 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.
    5. Nicholas Minot & Francesco Goletti, 1998. "Export Liberalization and Household Welfare: The Case of Rice in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 738-749.
    6. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 45362, University Library of Munich, Germany.
    7. 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.
    8. Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
    9. 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.
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    Citations

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    Cited by:

    1. Sami Bibi & Massa Coulibaly & John Cockburn & Luca Tiberti, 2009. "L'impact de la hausse des prix des produits alimentaires sur la pauvreté des enfants et les reponses politiques au Mali," Papers inwopa09/60, Innocenti Working Papers.
    2. Haggblade, Steven & Me-Nsope, Nathalie M. & Staatz, John M., 2017. "Food security implications of staple food substitution in Sahelian West Africa," Food Policy, Elsevier, vol. 71(C), pages 27-38.
    3. repec:wbk:wbpubs:13081 is not listed on IDEAS
    4. Miranda, Mario J. & Farrin, Kathleen M. & Larson, Donald F. & Chen, Shu-Ling, 2013. "Differential Effects of Food Security Policies on Subsistence Farmers and the Urban Poor," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149736, Agricultural and Applied Economics Association.
    5. Quentin Wodon, 2012. "Improving the Targeting of Social Programs in Ghana," World Bank Publications, The World Bank, number 13082, June.
    6. Osei-Asare, Yaw Bonsu & Eghan, Mark, 1. "Food Price Inflation And Consumer Welfare In Ghana," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1.

    More about this item

    Keywords

    Rural Poverty Reduction; Population Policies; Food&Beverage Industry; Achieving Shared Growth;

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