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Food Policy and Poverty in Indonesia: A General Equilibrium Analysis

Warr, Peter

Description

Rice is Indonesia's staple food and accounts for large shares of both consumers' budgets and total employment. Until recently, Indonesia was the world's largest importer, but rice import policy is now highly protectionist. Since early 2004, rice imports have been officially banned. Advocates of this policy say it reduces poverty by assisting poor farmers. Opponents say it increases poverty, stressing negative effects on poor consumers. This paper uses a general equilibrium model of the...[Show more]

dc.contributor.authorWarr, Peter
dc.date.accessioned2015-12-13T22:45:27Z
dc.identifier.issn1364-985X
dc.identifier.urihttp://hdl.handle.net/1885/79793
dc.description.abstractRice is Indonesia's staple food and accounts for large shares of both consumers' budgets and total employment. Until recently, Indonesia was the world's largest importer, but rice import policy is now highly protectionist. Since early 2004, rice imports have been officially banned. Advocates of this policy say it reduces poverty by assisting poor farmers. Opponents say it increases poverty, stressing negative effects on poor consumers. This paper uses a general equilibrium model of the Indonesian economy to analyse the effects of a ban on rice imports. The analysis recognises 1000 individual households, including all major socioeconomic categories, disaggregated by expenditures per person. It takes account of effects on each household's real expenditure and its income, operating through wages and returns to land and capital. The results indicate that the rice import ban raises the domestic price of rice relative to the import price by an amount equivalent to a 125 per cent tariff, six times the pre-2004 tariff. Poverty incidence rises by a little under 1 per cent of the population and increases in both rural and urban areas. Among farmers, only the richest gain. These results are qualitatively robust to variations in key parametric assumptions.
dc.publisherBlackwell Publishing Ltd
dc.sourceAustralian Journal of Agricultural and Resource Economics
dc.subjectKeywords: food policy; general equilibrium analysis; import; poverty; rice; socioeconomic conditions; trade policy; Asia; Eurasia; Indonesia; Southeast Asia General equilibrium; Indonesia; Rice imports; Trade policy
dc.titleFood Policy and Poverty in Indonesia: A General Equilibrium Analysis
dc.typeJournal article
local.description.notesImported from ARIES
local.description.refereedYes
local.identifier.citationvolume49
dc.date.issued2005
local.identifier.absfor140219 - Welfare Economics
local.identifier.ariespublicationMigratedxPub8171
local.type.statusPublished Version
local.contributor.affiliationWarr, Peter, College of Asia and the Pacific, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.issue4
local.bibliographicCitation.startpage429
local.bibliographicCitation.lastpage451
local.identifier.doi10.1111/j.1467-8489.2005.00312.x
dc.date.updated2015-12-11T10:22:33Z
local.identifier.scopusID2-s2.0-33747027729
CollectionsANU Research Publications

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