Households' welfare in developing countries has been hit by dramatic food prices increases which occurred between 2005 and 2008. In this paper, we adopt a partial equilibrium approach to analyze the short-time effects of a staple food price increase on nutritional attainments, as a measure of welfare. The analysis consists of first approximating complete food-demand systems and then performing household level micro-simulations. Instead of focusing on a single country profile, we provide a more complete snapshot, by comparing the evidence through a crosscountry assessment made possible by use of nationally representative household surveys. Comparability is assured by the adoption of the same methodological choices in the treatment of the micro data. We find that food price increase not only reduces the mean consumption of dietary energy, but also worsen the distribution of food calories further deteriorating the nutritional status of populations. We also discovered that access to agricultural land, plays a big role in assuring adequate nutritional attainments in rural areas, and surprisingly, even in urban areas.
This article explores the effects within households of an expanding rural nonfarm (RNF) sector in Ghana. We ask whether the growing RNF sector allows for economies of diversification within farms, how it affects household input demands, and whether it has measurable effects in overall household production efficiency. We explore the intrahousehold linkages between agricultural and RNF activities, first assuming perfectly competitive input and output markets and then with market failures, in particular missing labor and credit markets. We then measure these linkages using a household level input distance function, finding high levels of inefficiency in Ghanaian farms. Also, there are cost-complementarities between the RNF sector and the agricultural sector, particularly with food crops in which the poorest tend to specialize. The expansion of the RNF sector increases demand for most inputs including agricultural land. Finally, we show that smaller farms tend to be more efficient, and that RNF output is helping the farm household to become more efficient, but the latter result is not robust. Copyright (c) 2010 International Association of Agricultural Economists.
Is a reduced share of agriculture in the economy an obstacle for the agricultural sector to play an important role in poverty alleviation? What is the key channel, if any, by which agriculture is benefiting the poor in Chile that would be worthwhile to promote in other countries? By answering these questions we expand the literature on poverty and composition of growth by proposing a methodology that allows to disentangle the mechanisms by which agricultural growth can be poverty reducing. We find that in Chile agriculture plays a large role in reducing poverty, and most of this effect is channeled through the labor market.JEL classification: I3, Q0
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