Author: Nicholas MinotPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Impact of Food Price Changes on Household Welfare in Ghana and Kenya
Author: Nicholas MinotImpact of Food Price Changes on Household Welfare in Ghana
Author: Nicholas MinotPublisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 32
Book Description
In the wake of the global food crisis of 200708 and additional price spikes since then, greater attention has been given to the welfare impact of food price increases in developing countries. The standard approach in this type of analysis, proposed by Deaton (1989), is based on income and expenditure data from household surveys. Given the widespread use of this method, it is important to revisit the assumptions behind it and examine the sensitivity of results to those assumptions. In this paper, we explore the distributional impact of higher maize, rice, and food prices in Ghana and analyze the robustness of those results to changes in several key assumptions. The results suggest that higher maize and rice prices have a relatively modest short-term impact on national poverty but significant effects on specific groups of households. As expected, urban households lose from higher grain prices, but a surprisingly large share of rural households also lose because they are net buyers. The results also suggest that the current policy of protecting domestic rice producers with an import tax does not contribute to national poverty reduction, in spite of the fact that rice growers tend to be poor. If we relax the assumption that households do not respond to the higher prices, the effects are more positive or less negative, but only modestly so. On the other hand, if we relax the assumption that producer and consumer prices rise by the same proportion, and instead assume a constant marketing margin, the results change substantially. Because producer prices now rise by a larger proportion than consumer prices, the impact of higher prices is much more positive. These findings highlight the need for more research on the effect of price spikes on marketing margins.
Poverty impacts of food price increases in Kenya
Author: Minot, NicholasPublisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 8
Book Description
Kenya is potentially very vulnerable to sharp increases in the prices of key staple grains such as maize and wheat, both because these are important in diets and because Kenya depends on im ports of these products. A first step in understanding the impacts of changes in the prices of these products is to examine developments in their prices on world markets. After a long period of rela tively stable prices on world markets, the prices of key food staples began to rise from around the beginning of 2020. This period of price increases, spanning the COVID-19 pandemic and then the price shocks following Russia’s invasion of Ukraine raised serious concerns about the welfare of poor people in countries such as Kenya. Figure 1 shows the movements in the prices of four key grain staples—maize, rice, sorghum and wheat—from the beginning of 2020.
Transmission of World Food Price Changes to African Markets and Its Effect on Household Welfare
Author: Nicholas MinotPublisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
The global food crisis of 2007-08 was characterized by a dramatic increase in the prices of agricultural commodities in international markets. Between January 2007 and March 2008, the food price index of the Food and Agriculture Organization (FAO) rose 61%. Staple food crop prices rose even more steeply: over the same period, the prices of wheat and rice doubled, while that of maize increased by 42%. Since then, food prices have declined somewhat, but prices remain significantly higher than the average in 2006. For example, the average price of rice in 2009 is 90% higher than the average level in 2006 (FAO, 2009). High world prices were transmitted to domestic markets, eroding the purchasing power of urban households and other net buyers of food, forcing them to reduce non-food spending and shift to cheaper foods. Poor urban households were particularly affected because they spend a large share of their income on food. At the national level, food importing countries faced balance of payment pressure as the cost of food imports rose. In addition, the cost of operating food and nutrition programs at the national and international level rose steeply. In dozens of countries, the high prices sparked demonstrations and sometimes riots. A number of countries, including Argentina, India, Russia, and Vietnam, responded by restricting rice and wheat exports in an attempt to keep domestic prices from rising. Finally, at the international level, food aid budgets were stretched, as increased need in developing countries coincided with decreased purchasing power of the World Food Programme and other food aid agencies (Benson et al. 2008).
Household Welfare During Crisis and Adjustment in Ghana
Author: Alexander SarrisPublisher:
ISBN:
Category : Grain
Languages : en
Pages : 56
Book Description
Globalization, Trade and Poverty in Ghana
Author: Charles AckahPublisher: IDRC
ISBN: 9988647360
Category : Business & Economics
Languages : en
Pages : 258
Book Description
Citing a paucity of empirical evidence on the poverty and distributional impacts of trade policy reform in Ghana as the main motivation for this volume, the editors (both of the Institute of Statistical, Social and Economic Research at the U. of Ghana) present eleven papers that combine theory and econometric analysis in an effort to assess linkages between globalization, trade, and poverty (including gendered aspects). Specific topics examined include manufacturing employment and wage effects of trade liberalization; the influence of education on trade liberalization impacts on household welfare; trade liberalization and manufacturing firm productivity; the impact of elimination of trade taxes on poverty and income distribution; food prices, tax reforms, and consumer welfare under trade liberalization; impacts on tariff revenues; and impacts on cash cropping, gender, and household welfare; Distributed in the US by Stylus. Annotation ©2012 Book News, Inc., Portland, OR (booknews.com).
The Impact of Rising Food Prices on Household Welfare in Zambia
Author: Miniva ChibuyeThe Distributional Implications of the Impact of Fuel Price Increases on Inflation
Author: Mr. Kangni R KpodarPublisher: International Monetary Fund
ISBN: 1616356154
Category : Business & Economics
Languages : en
Pages : 34
Book Description
This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Agriculture, Food and Nutrition for Africa
Author: Publisher:
ISBN:
Category : Technology & Engineering
Languages : en
Pages : 464
Book Description
Income Versus Prices: How Does The Business Cycle Affect Food (In)-Security?
Author: Mr. Christian BogmansPublisher: International Monetary Fund
ISBN: 155775246X
Category : Business & Economics
Languages : en
Pages : 40
Book Description
We study how two aspects of food insecurity - caloric insufficiency and diet composition - are affected by aggregate economic fluctuations. The use of cross-country panel data allows us to adopt a global prospective on the identification of the macroeconomic determinants of food insecurity. Income shocks are the most relevant driver of food insecurity, displaying high elasticities at the early stages of economic development. The role of food price shocks is more limited. Social protection has a direct effect and mitigates the impact of income shocks. Effects are highly heterogeneous across a range of structural characteristics of the economy, highlighting the role of distributional aspects and of food import dependency.