Poverty effects of food price escalation: The importance of substitution effects in Mexican households

Wood, Benjamin; Nelson, Carl H.; Nogueira, Lia

doi:10.1016/j.foodpol.2011.11.005

Cited by 35 publications

(27 citation statements)

References 16 publications

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“…Endnotes a Among the much debated implications of food price increases are malnutrition and poverty (Ivanic et al, 2012, Zheng and Henneberry, 2012, Anriquez et al, 2013, Fujii, 2013, Wood et al 2012). The list of studies on oil and commodity price links is extensive and we mention only few representative studies here.…”

Section: Resultsmentioning

confidence: 99%

Oil and food prices in Malaysia: a nonlinear ARDL analysis

2015

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The present paper analyses the relations between food and oil prices for Malaysia using a nonlinear autoregressive distributed lags (NARDL) model. The bounds test of the NARDL specification suggests the presence of cointegration among the variables, which include the food price, oil price and real GDP. The estimated NARDL model affirms the presence of asymmetries in the food price behavior. Namely, in the long run, we find a significant relation between oil price increases and food price. Meanwhile, the long run relation between oil price reduction and the food price is absent. Furthermore, in the short run, only changes in the positive oil price exert significant influences on the food price inflation. With the absence of significant influence of oil price reduction on the food price both in the long run and in the short run, the role of market power in shaping the behavior of Malaysia's food price is likely to be significant.

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Section: Resultsmentioning

confidence: 99%

Oil and food prices in Malaysia: a nonlinear ARDL analysis

2015

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“…The analysis of the impacts of food price issues in developing countries can be found in many pieces of literature, mostly suggesting that the increase in commodity prices will contribute to the rise in living cost and eventually poverty level. This result is consistent, be it in an agriculture net-importing country (see Timmer 2004;McCulloch 2008;Alene et al 2009;Becerril & Abdulai 2010;Rodriguez-Takeuchi & Imai 2013) or in an agriculture netexporting country (see Warr 2008;Estrades and Terra 2012;Wood et al 2012). It is mostly a consequence of poor households using most of their incomes for consumption.…”

Section: Literature Review On Food Price Issuementioning

confidence: 53%

“…; Becerril & Abdulai ; Rodriguez‐Takeuchi & Imai ) or in an agriculture net‐exporting country (see Warr ; Estrades and Terra ; Wood et al . ). It is mostly a consequence of poor households using most of their incomes for consumption.…”

Section: Literature Review On Food Price Issuementioning

confidence: 97%

“…(), Alom (), Wood et al . (), and Rodriguez‐Takeuchi and Imai () found that increase in food prices will contribute to the rise in the cost of living and poverty. However, the econometric approach is mostly used in the partial equilibrium model analysis focusing on the impacts on specific sector/variable, often ignoring feedbacks and indirect effects from other sectors.…”

Section: Literature Review On Food Price Issuementioning

confidence: 99%

“…There are several methods to analyze the food price issue as applied in previous literature, including Econometric Models, Input-Output (I-O) and Social Accounting Matrix (SAM) framework, and also Computable General Equilibrium (CGE) Model. Using the Econometric Model, Alene et al (2009), Alom (2011), Wood et al (2012), and Rodriguez-Takeuchi and Imai (2013) found that increase in food prices will contribute to the rise in the cost of living and poverty. However, the econometric approach is mostly used in the partial equilibrium model analysis focusing on the impacts on specific sector/variable, often ignoring feedbacks and indirect effects from other sectors.…”

Section: Literature Review On Food Price Issuementioning

confidence: 99%

See 2 more Smart Citations

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

Misdawita

Hartono

Nugroho

2019

Rev Urban & Reg Develop

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This study investigated the impacts of increasing the prices of heavily protected food commodities in Indonesia on producer and consumer prices. It also evaluated the changes in household living expenses and poverty. The Indonesian Food Social Accounting Matrix was developed along with a price multiplier matrix–microsimulation approach that was used to analyze problems. Poor rural households were the most negatively affected by the increments in food prices. This result contrasted with the standard political argument stating that high rice prices will decrease poverty, particularly in rural areas where the poor live or work as farmers. Of all the food commodities observed, the changes in the rice prices had the most substantial impact on both producer and consumers price, as well as the households’ living cost, particularly low‐income households. Therefore, an increase of 25% in rice price will raise urban, rural, and national poverty levels by 0.13%, 0.10%, and 0.11%, respectively.

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The significance of terms of trade shocks for retail food prices in Turkey

Chadwick

2023

Agribusiness

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Emerging market economies often struggle with macroeconomic instabilities as they experience more persistent terms of trade shocks, volatile exchange rates, and commodity prices compared to the rest of the world. This paper evaluates the impact of terms of trade shocks on retail food prices for an emerging country. To do so, we employ the underlying small open economy macro‐model framework with a panel vector autoregression analysis. Our results show that a positive terms of trade shock decreases retail food prices and their price volatility. Positive terms of trade shock also increases the output gap. We find that these results are more persistent for the fresh fruits and vegetable group, which has the highest price volatility under the retail food prices group. [EconLit Citations: C33, E31, F41].

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Poverty effects of food price escalation: The importance of substitution effects in Mexican households

Cited by 35 publications

References 16 publications

Oil and food prices in Malaysia: a nonlinear ARDL analysis

Oil and food prices in Malaysia: a nonlinear ARDL analysis

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

The significance of terms of trade shocks for retail food prices in Turkey

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