Impacts of Food Prices on the Economy: Social Accounting Matrix and Microsimulation Approach in Indonesia

Misdawita,; Hartono, Djoni; Nugroho, Anda

doi:10.1111/rurd.12099

Cited by 5 publications

(11 citation statements)

References 32 publications

(86 reference statements)

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“…Empirically, the relationship between rising food prices and household welfare focused on much of the international literature. Some recent studies, for example, conducted by Ivanic and Martin (2008), McCulloch (2008), Valero-Gill and Valero (2008, Robles and Torero (2010), Vu and Glewwe (2011), De Hoyos and Medvedev (2011), Ivanic et al (2012), Ferreira et al (2013, Attanasio et al (2013), Warr and Yusuf (2013), Fujii (2013), Caracciolo et al (2013), Ivanic and Martin (2014), Headey (2018), Misdawita et al (2019), Adekunle et al (2020) and Hovhannisyan and Shanoyan (2020). These studies report the negative impact of rising food prices on welfare or poverty, although they vary depending on the share of food consumption and household characteristics.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There has been little recent research into the relationship between rising food prices and poverty in Indonesia. From international literature, we found McCulloch (2008), Ivanic et al (2012), Warr and Yusuf (2013) and Misdawita et al (2019). McCulloch (2008) and Ivanic et al (2012) studied increasing rice price impact on poverty in Indonesia, while Warr and Yusuf (2013) use international prices for six food commodities to calculate the poverty impact.…”

Section: Introductionmentioning

confidence: 99%

“…McCulloch (2008) and Ivanic et al (2012) studied increasing rice price impact on poverty in Indonesia, while Warr and Yusuf (2013) use international prices for six food commodities to calculate the poverty impact. Misdawita et al (2019) used the social accounting matrix to find the effect of four food commodities prices (rice, maize, soybean and sugar) on poverty. Most households in Indonesia, including rural areas, are negatively affected by the increase in rice prices because of decreasing household welfare and increasing poverty.…”

Section: Introductionmentioning

confidence: 99%

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Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

Faharuddin

Yamin

Mulyana

et al. 2022

JABES

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PurposeUsing cross-sectional household survey data, this paper aims to determine the impact of food price increases on poverty in Indonesia.Design/methodology/approachThis paper uses the quadratic almost ideal demand system applied to the 2013 Indonesian household survey data. The impact of food price increase on household welfare is calculated using a welfare measure, compensating variation.FindingsThree food groups with the most outstanding price impact on poverty are rice, vegetables and fish were studied. The 20% increase in the price of each food group causes an increase in the headcount ratio by 1.360 points (rice), 0.737 points (vegetables) and 0.636 points (fish). Maintaining food price stability for these food groups is very important because the more price increases, the more impact on poverty. Food price policies in rural areas are also more critical than in urban areas because the impact of food price increases in rural areas is higher.Research limitations/implicationsThis paper does not consider the positive impact of rising food prices on food-producing households.Practical implicationsImplementing appropriate poverty alleviation policies through food policies for main food groups and social protection.Social implicationsPromoting rural development policies and agricultural growth.Originality/valueThis paper contributes to the existing literature by providing empirical results regarding the impact of domestic food prices increase on poverty in Indonesia.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

Faharuddin

Yamin

Mulyana

et al. 2022

JABES

View full text Add to dashboard Cite

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“…The main advantage of using the CGE model is that it has both accounting and theoretical consistencies instead of just the accounting consistency of the SAM. However, it requires data preparation, including the estimation of various parameter/elasticity values (Misdawita and Nugroho, 2019). The SAM model can be seen as a simplified version of a general equilibrium model, and this paper contributes to the existing literature in several ways.…”

Section: Literature Reviewmentioning

confidence: 99%

Impacts of Price Shocks: Price Modeling Analysis for Saudi Sectors

Althumairi¹

2021

HMS-SJKFU

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This paper investigates the impacts of increasing prices on the following sectors in Saudi Arabia: electricity, gas, water, manufacturing, agriculture, transport, storage, and communications. It evaluates the changes in producer and consumer prices and household living expenses. The Saudi Social Accounting Matrix (SAM) was developed along with a price multiplier approach used to analyze different simulations. Two findings stand out. First, there are differences in impacts according to household groups and the direction of the effects. Low-income and middle-income households were the most negatively affected by the price hikes. Second, the potential impacts of manufacturing, transport, storage, and communications price shocks are high. For a 50% increase in prices, the overall increases in cost of living for low-income households and middle-income households, as estimated with the SAM price model, are 20.59% and 6.17%, respectively. In contrast, the impacts of electricity, gas and water supply, and agriculture prices are minor, estimated at 2.05% and 2.75%, respectively. This would indicate that special attention should be given to compensatory mechanisms to minimize the adverse effects on low-income and middle-income household groups.

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“…Satriawan and Shrestha (2018) evaluated how Indonesian households participated in the Raskin program, a nationwide rice price subsidy scheme for the poor. Misdawita et al (2019) formulated a social accounting matrix and used a microsimulation approach to assess the impacts of food prices on the Indonesian economy.…”

mentioning

confidence: 99%

Two decades of rice research in Indonesia and the Philippines: A systematic review and research agenda for the social sciences

Cuaton

Delina

2022

Humanit Soc Sci Commun

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While rice studies are abundant, they usually focus on macro-level rice production and yield data, genetic diversity, cultivar varieties, and agrotechnological innovations. Moreover, many of these studies are either region-wide or concentrated on countries in the Global North. Collecting, synthesizing, and analyzing the different themes and topic areas in rice research since the beginning of the 21st century, especially in the Global South, remain unaddressed areas. This study contributes to filling these research lacunae by systematically reviewing 2243 rice-related articles cumulatively written by more than 6000 authors and published in over 900 scientific journals. Using the PRISMA 2020 guidelines, this study screened and retrieved articles published from 2001 to 2021 on the various topics and questions surrounding rice research in Indonesia and the Philippines—two rice-producing and -consuming, as well as emerging economies in Southeast Asia. Using a combination of bibliometrics and quantitative content analysis, this paper discusses the productive, relevant, and influential rice scholars; key institutions, including affiliations, countries, and funders; important articles and journals; and knowledge hotspots in these two countries. It also discusses the contributions of the social sciences, highlights key gaps, and provides a research agenda across six interdisciplinary areas for future studies. This paper mainly argues that an interdisciplinary and comparative inquiry of potentially novel topic areas and research questions could deepen and widen scholarly interests beyond conventional natural science-informed rice research in Indonesia and the Philippines. Finally, this paper serves other researchers in their review of other crops in broader global agriculture.

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Impacts of Food Prices on the Economy: Social Accounting Matrix and Microsimulation Approach in Indonesia

Cited by 5 publications

References 32 publications

Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

Impacts of Price Shocks: Price Modeling Analysis for Saudi Sectors

Two decades of rice research in Indonesia and the Philippines: A systematic review and research agenda for the social sciences

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