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World food prices and poverty in Indonesia

Warr, Peter; Yusuf, Arief A

Description

Spikes in international food prices in 2007-2008 worsened poverty incidence in Indonesia, both rural and urban, but only by small amounts. The paper reaches this conclusion using a multisectoral and multihousehold general equilibrium model of the Indonesian economy. The negative effect on poor consumers, operating through their living costs, outweighed the positive effect on poor farmers, operating through their incomes. Indonesia's post-2004 rice import restrictions shielded its internal rice...[Show more]

dc.contributor.authorWarr, Peter
dc.contributor.authorYusuf, Arief A
dc.date.accessioned2015-12-10T22:53:23Z
dc.date.available2015-12-10T22:53:23Z
dc.identifier.issn1467-8489
dc.identifier.urihttp://hdl.handle.net/1885/59328
dc.description.abstractSpikes in international food prices in 2007-2008 worsened poverty incidence in Indonesia, both rural and urban, but only by small amounts. The paper reaches this conclusion using a multisectoral and multihousehold general equilibrium model of the Indonesian economy. The negative effect on poor consumers, operating through their living costs, outweighed the positive effect on poor farmers, operating through their incomes. Indonesia's post-2004 rice import restrictions shielded its internal rice market from the temporary world price increases, muting the increase in poverty. But it did this only by imposing large and permanent increases in both domestic rice prices and poverty incidence. Poverty incidence increased more among rural than urban people, even though higher agricultural prices mean higher incomes for many of the rural poor. Gains to poor farmers were outweighed by the losses incurred by the large number of rural poor who are net buyers of food, and the fact that food represents a large share of their total budgets, even larger on average than for the urban poor. The main beneficiaries of higher food prices are not the rural poor, but the owners of agricultural land and capital, many of whom are urban based.
dc.publisherWiley-Blackwell Publishing Asia
dc.sourceThe Australian Journal of Agricultural and Resource Economics
dc.titleWorld food prices and poverty in Indonesia
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume57
dc.date.issued2013
local.identifier.absfor140201 - Agricultural Economics
local.identifier.ariespublicationu4002919xPUB485
local.type.statusPublished Version
local.contributor.affiliationWarr, Peter, College of Asia and the Pacific, ANU
local.contributor.affiliationYusuf, Arief A, Padjadjaran University
local.bibliographicCitation.startpage1
local.bibliographicCitation.lastpage21
local.identifier.doi10.1111/1467-8489.12015
local.identifier.absseo910210 - Production
dc.date.updated2015-12-10T07:33:27Z
local.identifier.scopusID2-s2.0-84892479904
local.identifier.thomsonID000330726700001
CollectionsANU Research Publications

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