IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9839.html

The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from EthiopianCoffee Farmers

Author

Listed:
  • Kebede,Hundanol Atnafu

Abstract

International commodity price shocks may have large impacts on producers in developing countries.In this paper, a unique household panel data from Ethiopia is utilize to show that a decrease in international coffeeprice has strong pass-through to the consumption of households that rely on coffee production as a main sourceof livelihood. It also results in decreases in on-farm labor supply (particularly male labor supply) and inducesreallocation of labor towards non-coffee fields, but has negligible effect on off-farm labor supply. The decline inconsumption has significant consequences on child malnutrition: children born in coffee-producing householdsduring low coffee price periods have lower weight-to-age and weight-to-height z-scores than their peers born innon-coffee households.

Suggested Citation

  • Kebede,Hundanol Atnafu, 2021. "The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from EthiopianCoffee Farmers," Policy Research Working Paper Series 9839, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9839
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/181101636119195700/pdf/The-Pass-Through-of-International-Commodity-Price-Shocks-to-Producers-Welfare-Evidence-from-Ethiopian-Coffee-Farmers.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grant Miller & B. Piedad Urdinola, 2010. "Cyclicality, Mortality, and the Value of Time: The Case of Coffee Price Fluctuations and Child Survival in Colombia," Journal of Political Economy, University of Chicago Press, vol. 118(1), pages 113-155, February.
    2. Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Structure and Performance of Ethiopia’s Coffee Export Sector," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197157, International Agricultural Trade Research Consortium.
    3. Vibhuti Mendiratta, 2015. "Impact of Rainfall Shocks on Child Health: Evidence from India," Working Papers halshs-01211575, HAL.
    4. repec:hal:pseose:halshs-00754594 is not listed on IDEAS
    5. Kruger, Diana I., 2007. "Coffee production effects on child labor and schooling in rural Brazil," Journal of Development Economics, Elsevier, vol. 82(2), pages 448-463, March.
    6. Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 311-335.
    7. Eoin McGuirk & Marshall Burke, 2020. "The Economic Origins of Conflict in Africa," Journal of Political Economy, University of Chicago Press, vol. 128(10), pages 3940-3997.
    8. Christina Paxson & Norbert Schady, 2005. "Child Health and Economic Crisis in Peru," The World Bank Economic Review, World Bank, vol. 19(2), pages 203-223.
    9. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-70, March.
    10. Samuel Bazzi & Christopher Blattman, 2014. "Economic Shocks and Conflict: Evidence from Commodity Prices," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(4), pages 1-38, October.
    11. Ferreira, Francisco H. G. & Schady, Norbert, 2008. "Aggregate economic shocks, child schooling and child health," Policy Research Working Paper Series 4701, The World Bank.
    12. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    13. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    14. Douglas Almond & Bhashkar Mazumder & Reyn Ewijk, 2015. "In Utero Ramadan Exposure and Children's Academic Performance," Economic Journal, Royal Economic Society, vol. 125(589), pages 1501-1533, December.
    15. Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Structure and performance of Ethiopia’s coffee export sector," ESSP working papers 66, International Food Policy Research Institute (IFPRI).
    16. Bladimir Carrillo, 2020. "Present Bias and Underinvestment in Education? Long-Run Effects of Childhood Exposure to Booms in Colombia," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1127-1265.
    17. Achyuta Adhvaryu & James Fenske & Anant Nyshadham, 2019. "Early Life Circumstance and Adult Mental Health," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1516-1549.
    18. Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Summary of Structure and performance of Ethiopia’s coffee export sector," ESSP research notes 29, International Food Policy Research Institute (IFPRI).
    19. Manisha Shah & Bryce Millett Steinberg, 2017. "Drought of Opportunities: Contemporaneous and Long-Term Impacts of Rainfall Shocks on Human Capital," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 527-561.
    20. Sailesh Tiwari & Hanan G. Jacoby & Emmanuel Skoufias, 2017. "Monsoon Babies: Rainfall Shocks and Child Nutrition in Nepal," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 167-188.
    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. Negi, Digvijay S., 2022. "Global food price surge, in-kind transfers and household welfare: Evidence from India," World Development, Elsevier, vol. 158(C).
    2. Kebede, Hundanol A., 2022. "Market integration and separability of production and consumption decisions in farm households," Journal of Development Economics, Elsevier, vol. 158(C).

    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. Habtamu Ali Beshir & Jean-François Maystadt, 2024. "Price Shocks and Human Capital: Timing Matters," Economic Development and Cultural Change, University of Chicago Press, vol. 72(4), pages 1567-1583.
    2. Nicolas Berman & Lorenzo Rotunno & Roberta Ziparo, 2025. "Sweet Child of Mine: Parental Income, Child Health and Inequality," The Economic Journal, Royal Economic Society, vol. 135(672), pages 2455-2482.
    3. Millán-Quijano, Jaime & Pulgarín, Sebastián, 2023. "Oiling up the field. Forced internal displacement and the expansion of palm oil in Colombia," World Development, Elsevier, vol. 162(C).
    4. Denis Cogneau & Rémi Jedwab, 2012. "Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 60(3), pages 507-534.
    5. Mekasha, Tseday J. & Molla, Kiflu G. & Tarp, Finn & Aikaeli, Jehovaness, 2022. "Commodity price fluctuations and child malnutrition," World Development, Elsevier, vol. 158(C).
    6. Xu, Huayu, 2021. "The long-term health and economic consequences of improved property rights," Journal of Public Economics, Elsevier, vol. 201(C).
    7. Tadesse Kuma & Mekdim Dereje & Kalle Hirvonen & Bart Minten, 2019. "Cash Crops and Food Security: Evidence from Ethiopian Smallholder Coffee Producers," Journal of Development Studies, Taylor & Francis Journals, vol. 55(6), pages 1267-1284, June.
    8. Seth R. Gitter & James Manley & Bradford L. Barham, 2013. "Early-Childhood Nutrition and Educational Conditional Cash Transfer Programmes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(10), pages 1397-1411, October.
    9. Ciccone, Antonio, 2018. "International Commodity Prices and Civil War Outbreak: New Evidence for Sub-Saharan Africa and Beyond," CEPR Discussion Papers 12625, C.E.P.R. Discussion Papers.
    10. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    11. Bratti, Massimiliano & Mendola, Mariapia, 2014. "Parental health and child schooling," Journal of Health Economics, Elsevier, vol. 35(C), pages 94-108.
    12. Eva Deuchert & Christina Felfe, 2013. "The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development," CESifo Working Paper Series 4168, CESifo.
    13. Depetris-Chauvin, Emilio & Özak, Ömer, 2023. "(De facto) Historical Ethnic Borders and Contemporary Conflict in Africa," MPRA Paper 116868, University Library of Munich, Germany.
    14. Shoji, Masahiro, 2020. "Early-Life Circumstances and Adult Locus of Control: Evidence from 46 Developing Countries," MPRA Paper 99987, University Library of Munich, Germany.
    15. Laville,Camille & Mandon,Pierre Jean-Claude, 2023. "Internal Conflicts and Shocks. A Narrative Meta-Analysis," Policy Research Working Paper Series 10315, The World Bank.
    16. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," The World Bank Research Observer, World Bank, vol. 14(2), pages 187-207, August.
    17. repec:osf:osfxxx:k76mt_v1 is not listed on IDEAS
    18. Deiana, Claudio & Giua, Ludovica & Nistico, Roberto, 2019. "The Economics behind the Epidemic: Afghan Opium Price and Prescription Opioids in the US," IZA Discussion Papers 12872, IZA Network @ LISER.
    19. Gáfaro, Margarita & Pellegrina, Heitor S., 2022. "Trade, farmers’ heterogeneity, and agricultural productivity: Evidence from Colombia," Journal of International Economics, Elsevier, vol. 137(C).
    20. repec:hal:cepnwp:hal-05021482 is not listed on IDEAS
    21. Francesca Marchetta & David E Sahn & Luca Tiberti, 2019. "The Role of Weather on Schooling and Work of Young Adults in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(4), pages 1203-1227.
    22. Assefa, Thomas Woldu & Minten, Bart, 2015. "Can agricultural traders be trusted? Evidence from urban coffee markets in Ethiopia," ESSP working papers 72, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wbk:wbrwps:9839. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.