The Impact of Food Inflation on Poverty in Nepal

Shrestha, Min B.; Chaudhary, Shashi Kant

doi:10.3126/nrber.v25i1.52715

Cited by 12 publications

(2 citation statements)

References 6 publications

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“…, 2023b; Vinayagathasan and Ramesh, 2022; Inegbedion and Obadiaru, 2022; Rizki and Solihati, 2022; Gyeke-Dako et al ., 2022; Sari and Rofiuddin, 2022; Sani and Yahaya, 2021; Sehrawat and Giri, 2018; Yolanda, 2017; Hassan et al. , 2016; Shrestha and Chaudhary, 2012). These studies are restricted to the effect of inflation on poverty.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Due to the macroeconomic implications of inflation on poverty, a plethora of studies have focused on the impact of inflation on poverty, with scanty or no attention paid to the likelihood of a reactionary effect from poverty to inflation (Danlami et al, 2020). Meanwhile, the research outcomes of the existing research are mixed and inconclusive Vinayagathasan and Ramesh, 2022;Inegbedion and Obadiaru, 2022;Rizki and Solihati, 2022;Gyeke-Dako et al, 2022;Sari and Rofiuddin, 2022;Sani and Yahaya, 2021;Sehrawat and Giri, 2018;Yolanda, 2017;Hassan et al, 2016;Shrestha and Chaudhary, 2012). These studies are restricted to the effect of inflation on poverty.…”

Section: Empirical Evidencementioning

confidence: 99%

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Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Olaniyi,

Odhiambo

2024

ITPD

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PurposeThis study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.Design/methodology/approachTo account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.FindingsUnlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.Practical implicationsAll stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.Originality/valueStudies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Empirical Evidencementioning

confidence: 99%

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Olaniyi,

Odhiambo

2024

ITPD

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An application of the Household Food Insecurity Access Scale to assess food security in rural communities of Nepal

Pandey

Bardsley

2019

Asia & Pacific Policy Stud

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The state of food (in)security in rural communities of different ecological zones of the Kaligandaki Basin, Nepal, is assessed using a Household Food Insecurity Access Scale (HFIAS). The data were collected from 360 households using face-to-face interviews. The results show poor availability of food from subsistence production in the Middle-Mountains and Trans-Himalaya, whereas most households with sufficient purchasing power are able to access additional food from the market. Net food security is poor, with the highest level of insecurity in the Middle-Mountains, followed by the Trans-Himalaya and the Tarai. Although weaknesses were found in application of the HFIAS method due to respondent bias in subjective assessments of food insecurity in producer-consumer rural households, the method was found to be effective for rapidly incorporating utilization and stability elements into appraisals. Although not comprehensive, this approach has the potential to complement other forms of knowledge for designing targeted food policy in Nepal. ---This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.

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Food Inflation in Nepal and Its Implications

Sharma

2019

Agricultural Transformation in Nepal

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The Impact of Food Inflation on Poverty in Nepal

Cited by 12 publications

References 6 publications

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

An application of the Household Food Insecurity Access Scale to assess food security in rural communities of Nepal

Food Inflation in Nepal and Its Implications

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