Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country

A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on welfare are not obvious. Historically, the agricultural sector in Paraguay has played a key role in economic development and has contribu...

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Detalles Bibliográficos
Autores principales: Garriga, Santiago, Lugo, María Ana, Puig, Jorge Pablo
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2018
Materias:
Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/68333
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas231.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-68333
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
spellingShingle Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
topic_facet Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
description A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on welfare are not obvious. Historically, the agricultural sector in Paraguay has played a key role in economic development and has contributed significantly, and increasingly, to economic growth. In recent years, sharp movements in commodity prices have been added to the inherent volatility of the sector linked to climate conditions. In this work, we use the 2011/12 expenditure and income survey, as well as monthly price data for 127 food items for the period 2007/15, to simulate the effect of a potential hike in food prices on welfare. Our main results suggest that the expenditure effect is negative and regressive everywhere, but larger in rural than urban areas. The income effect is positive and progressive in rural areas and negligible in urban ones. Therefore, we find that the potential overall impact of an unexpected increase in food prices in Paraguay is a very flat U-shaped curve. We conclude with a simple exercise where we simulate a policy response in order to help those affected by the initial increase in food prices.
format Articulo
Documento de trabajo
author Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
author_facet Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
author_sort Garriga, Santiago
title Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
title_short Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
title_full Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
title_fullStr Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
title_full_unstemmed Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country
title_sort effects of food prices on poverty: the case of paraguay, a food exporter and a non-fully urbanized country
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/68333
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas231.pdf
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