Publication: The Pass-Through of International Commodity Price Shocks to Producers’ Welfare: Evidence from Ethiopian Coffee Farmers
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Date
2021-09-16
ISSN
0258-6770 (print)
1564-698X (online)
1564-698X (online)
Published
2021-09-16
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Abstract
International commodity price shocks may have large impacts on producers in developing countries. In this paper, a unique household panel data from Ethiopia is utilized to show that a decrease in international coffee price has strong pass-through to the consumption of households that rely on coffee production as a main source of livelihood. It also results in decreases in on-farm labor supply (particularly male labor supply) and induces reallocation of labor towards non-coffee fields but has negligible effect on off-farm labor supply. The decline in consumption has significant consequences on child malnutrition: children born in coffee-producing households during low coffee price periods have lower weight-for-age and weight-for-height z-scores than their peers born in non-coffee households.
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“Kebede, Hundanol A.. 2021. The Pass-Through of International Commodity Price Shocks to Producers’ Welfare: Evidence from Ethiopian Coffee Farmers. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/40901 License: CC BY-NC-ND 3.0 IGO.”
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