Implications of Higher Global Food Prices for Poverty in Low-Income Countries

57 Pages Posted: 20 Apr 2016  

Maros Ivanic

World Bank; World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Will J. Martin

International Food Policy Research Institute (IFPRI)

Date Written: April 1, 2008

Abstract

In many poor countries, the recent increases in prices of staple foods raise the real incomes of those selling food, many of whom are relatively poor, while hurting net food consumers, many of whom are also relatively poor. The impacts on poverty will certainly be very diverse, but the average impact on poverty depends upon the balance between these two effects, and can only be determined by looking at real-world data. Results using household data for ten observations on nine low-income countries show that the short-run impacts of higher staple food prices on poverty differ considerably by commodity and by country, but, that poverty increases are much more frequent, and larger, than poverty reductions. The recent large increases in food prices appear likely to raise overall poverty in low income countries substantially.

Keywords: Rural Poverty Reduction, Markets and Market Access, Population Policies, Achieving Shared Growth

Suggested Citation

Ivanic, Maros and Martin, Will J., Implications of Higher Global Food Prices for Poverty in Low-Income Countries (April 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1149097

Maros Ivanic (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Economics Group (DEC) ( email )

1818 H Street N.W.
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street NW
Washington, DC 20006
United States

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