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International food prices and poverty in Indonesia

Peter Warr () and Arief Yusuf ()

No 59259, 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia from Australian Agricultural and Resource Economics Society

Abstract: This paper argues that recent increases in international food prices worsened poverty incidence in Indonesia, even though many poor farmers benefited. This conclusion is based on the application of a multi-sectoral, multi-household general equilibrium model of the Indonesian economy. The positive effect on the welfare of poor farmers was exceeded by the negative effect on poor consumers. Indonesia’s ban on rice imports since 2004 complicates this account. The import ban shielded Indonesia’s internal rice market from the temporary world price increases from 2007 to 2008, but did so at the expense of permanently increasing both rice prices and poverty incidence.

Keywords: International; Development (search for similar items in EconPapers)
Pages: 33
Date: 2010
New Economics Papers: this item is included in nep-agr, nep-dev and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare10:59259

DOI: 10.22004/ag.econ.59259

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