International Price Changes of Agricultural Commodities and Their Impacts on Income Distribution and Poverty in Brazil

2006 Intermediate Input-Outout Meetings on Sustainability, Trade & Productivity, 2006

30 Pages Posted: 13 Mar 2014

See all articles by Joaquim Guilhoto

Joaquim Guilhoto

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI); University of Sao Paulo

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics

Fernando Gaiger Silveira

Institute of Applied Economic Research (IPEA)

Tatiane A. de Menezes

University of São Paulo (USP) - Department of Economics

Marcos M. Hasegawa

Universidade Federal do Paraná - UFPR

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics; University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL

Date Written: 2006

Abstract

The objective of the paper is to provide an estimative of the impacts that changes in international prices of agricultural commodities will have on income distribution and poverty in Brazil. To do so, a Social Accounting Matrix is constructed and applied, using a Leontief-Miyazawa type model framework. The SAM is defined for 40 products, being 17 raw agricultural products, 15 agricultural processed products, 3 industrial agricultural inputs, 2 other industrial products, trade, transport, and services. Households are allocated to 10 groups, being 6 agricultural (4 types of family farmers, commercial farmers, and agricultural labor), and 4 urban (income quartiles). Demand elasticities (price and income) for the products defined in the SAM are considered, as well as limitations on the supply of agricultural inputs. The knowledge of the possible impacts of changes in international commodity prices on income distribution and poverty is very important for policy design within developing countries. Given the estimated impacts on different groups of producers, different sorts of cushioning policies can be designed.

Keywords: International, Agriculture, Commodities, Poverty, Brazil

JEL Classification: O13, I32

Suggested Citation

Guilhoto, Joaquim José Martins and Azzoni, Carlos Roberto and Silveira, Fernando Gaiger and Menezes, Tatiane A. de and Hasegawa, Marcos Minoru and Haddad, Eduardo A., International Price Changes of Agricultural Commodities and Their Impacts on Income Distribution and Poverty in Brazil (2006). 2006 Intermediate Input-Outout Meetings on Sustainability, Trade & Productivity, 2006 . Available at SSRN: https://ssrn.com/abstract=2408132 or http://dx.doi.org/10.2139/ssrn.2408132

Joaquim José Martins Guilhoto (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI) ( email )

Paris
France

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 818-5870 (Phone)
+55 11 813-4743 (Fax)

Fernando Gaiger Silveira

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Tatiane A. de Menezes

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil

Marcos Minoru Hasegawa

Universidade Federal do Paraná - UFPR ( email )

Av. Pref. Lothario Meissner, 632
Centro
Curitiba - PR, 80060-000
Brazil
+55(41)3360-4350 (Phone)

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo, SP 05508-900
Brazil

HOME PAGE: http://www.usp.br/nereus

University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL ( email )

United States

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