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Rice prices and poverty in Liberia

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  • Tsimpo, Clarence
  • Wodon, Quentin

Abstract

When assessing the impact of changes in food prices on poverty, it is important to consider food producers (who may benefit from an increase in prices) as well as consumers (who loose out when the price increases), with a focus on poor consumers and producers. In the case of rice in Liberia however, the impact of a change in price is not ambiguous because a large share of the rice consumed is imported, while the rice locally produced is used mostly for auto-consumption. An increase in the price of rice will result in higher poverty in the country as a whole (even if some local producers will gain from this increase), while a reduction in price will reduce poverty. Furthermore, because rice represents a large share of food consumption, any change in its price is likely to have a large impact on poverty. Using data from the 2007 CWIQ survey, the paper finds that an increase or decrease of 20 percent in the price of rice could lead to an increase or decrease of three to four percentage points in the share of the population in poverty.

Suggested Citation

  • Tsimpo, Clarence & Wodon, Quentin, 2008. "Rice prices and poverty in Liberia," Policy Research Working Paper Series 4742, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4742
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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. 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.
    4. 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.
    5. Quentin Wodon & Hassan Zaman, 2010. "Higher Food Prices in Sub-Saharan Africa: Poverty Impact and Policy Responses," World Bank Research Observer, World Bank Group, vol. 25(1), pages 157-176, February.
    6. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 45362, University Library of Munich, Germany.
    7. 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.
    8. 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.
    9. Backiny-Yetna, Prospere & Wodon, Quentin & Mungai, Rose & Tsimpo, Clarence, 2012. "Poverty in Liberia: Level,Profile, and Determinants," MPRA Paper 38546, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Backiny Yetna, Prosper Romuald, 2013. "Politiques publiques et pauvreté : trois études de cas d'évaluation des performances de ciblage et d'analyse d'impact," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11794 edited by De Vreyer, Philippe.
    2. Backiny-Yetna, Prospere & Wodon, Quentin & Zampaglione, Giuseppe, 2012. "Impact of Labor-Intensive Public Works in Liberia: Results from a Light Evaluation Survey," MPRA Paper 38556, University Library of Munich, Germany.
    3. Seck, Papa A. & Tollens, Eric & Wopereis, Marco C.S. & Diagne, Aliou & Bamba, Ibrahim, 2010. "Rising trends and variability of rice prices: Threats and opportunities for sub-Saharan Africa," Food Policy, Elsevier, vol. 35(5), pages 403-411, October.
    4. Joseph, George & Wodon, Quentin, 2008. "Assessing the potential impact on poverty of rising cereals prices : the case of Mali," Policy Research Working Paper Series 4744, The World Bank.
    5. World Bank, 2010. "Liberia - Employment and Pro-Poor Growth," World Bank Other Operational Studies 2966, The World Bank.
    6. Andrews, Colin & Backiny-Yetna, Prospere & Garin, Emily & Weedon, Emily & Wodon, Quentin & Zampaglione, Giuseppe, 2011. "Liberia's Cash for Work Temporary Employment Project : responding to crisis in low income, fragile countries," Social Protection and Labor Policy and Technical Notes 72047, The World Bank.
    7. Tsimpo, Clarence & Wodon, Quentin, 2012. "Benefit Incidence of Fiscal Measures to Deal with the Impact on Households of the Economic Crisis in Liberia: Comparing Import and Income Taxes," MPRA Paper 38553, University Library of Munich, Germany.
    8. Backiny-Yetna, Prospere & Wodon, Quentin & Mungai, Rose & Tsimpo, Clarence, 2012. "Poverty in Liberia: Level,Profile, and Determinants," MPRA Paper 38546, University Library of Munich, Germany.
    9. repec:wbk:wbpubs:13079 is not listed on IDEAS
    10. Quentin Wodon, 2012. "Poverty and the Policy Response to the Economic Crisis in Liberia," World Bank Publications, The World Bank, number 13080.
    11. 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.

    More about this item

    Keywords

    Food&Beverage Industry; Rural Poverty Reduction; Crops&Crop Management Systems; Population Policies;

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