Working Paper

Who Wins and Who Loses from Staple Food Price Spikes? : Welfare Implications for Mozambique

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Baez, Javier E.
dc.contributor.author
Caruso, German
dc.contributor.author
Pullabhotla, Hemant
dc.date.accessioned
2018-10-16T20:33:39Z
dc.date.available
2018-10-16T20:33:39Z
dc.date.issued
2018-10
dc.date.lastModified
2018-10-17T05:10:43Z
dc.description.abstract
With a large share of the population dependent on agriculture and high exposure to natural disasters and other food price shocks, the welfare impacts of food price inflation in Mozambique cannot be ignored. This paper performs incidence analysis exploiting the spatial location of households to match data on consumption with production from agricultural activities to simulate the welfare effects of food price changes. The analysis focuses on maize, rice, and cassava, which form a substantial part of the Mozambican diet, as a source of calories and budgetary allocation. The results show large net negative welfare effects of food price rises in rural areas and small, negative effects in urban areas. A 10 percent increase in maize prices is associated with a reduction of 1.2 percent in consumption per capita in rural areas and 0.2 percent in urban areas. The effects from changes in the prices of rice and cassava are lower but qualitatively equal. Overall, the negative effects are larger for the bottom half of the distribution and imply that the price spike in 2016–17 may have translated into a poverty increase of 4-6 percentage points, with some of the poorest provinces bearing much of the brunt. The results hold to changes in some of the underlying assumptions of the simulations.
en
dc.identifier
http://documents.worldbank.org/curated/en/323001539354782668/Who-Wins-and-Who-Loses-from-Staple-Food-Price-Spikes-Welfare-Implications-for-Mozambique
dc.identifier.uri
http://hdl.handle.net/10986/30580
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 8612
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
FOOD PRICES
dc.subject
POVERTY
dc.subject
INCIDENCE ANALYSIS
dc.subject
WELFARE IMPACT
dc.title
Who Wins and Who Loses from Staple Food Price Spikes?
en
dc.title.subtitle
Welfare Implications for Mozambique
en
dc.type
Working Paper
en
okr.date.disclosure
2018-10-12
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/323001539354782668/Who-Wins-and-Who-Loses-from-Staple-Food-Price-Spikes-Welfare-Implications-for-Mozambique
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-8612
okr.identifier.externaldocumentum
090224b0864384ad_1_0
okr.identifier.internaldocumentum
30493743
okr.identifier.report
WPS8612
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/323001539354782668/pdf/WPS8612.pdf
en
okr.region.administrative
Africa
okr.region.country
Mozambique
okr.topic
Agriculture :: Agricultural Sector Economics
okr.topic
Agriculture :: Food Markets
okr.topic
Agriculture :: Food Security
okr.topic
Macroeconomics and Economic Growth :: Commodities
okr.topic
Poverty Reduction :: Inequality
okr.topic
Poverty Reduction :: Poverty Impact Evaluation
okr.unit
Poverty and Equity Global Practice

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