Publication: The Pass-Through of International Commodity Price Shocks to Producers’ Welfare: Evidence from Ethiopian Coffee Farmers
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2021-11
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2021-11-12
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International commodity price shocks may have large impacts on producers in developing countries. In this paper, a unique household panel data from Ethiopia is utilize 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-to-age and weight-to-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. Policy Research Working Paper;No. 9839. © World Bank. http://hdl.handle.net/10986/36551 License: CC BY 3.0 IGO.”
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