Global market shocks and poverty in Vietnam: the case of rice

Ian Coxhead, Linh Vu () and Le Dong Tam
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Le Dong Tam: Department of Agricultural and Applied Economics, University of Wisconsin-Madison

No 32, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: World food prices have experienced dramatic increases in recent years. These "shocks" affect food importers and exporters alike. Vietnam is a major exporter of rice, and rice is also a key item in domestic production, employment and consumption. Accordingly, rice price shocks from the world market have general equilibrium impacts and as such, their implications for household welfare are not known ex ante. In this paper we present a framework for understanding the direct and indirect welfare effects of a global market shock of this kind. We quantify transmission of the shock from global indicator prices to domestic markets. Then we use an applied general equilibrium model to simulate the economic effects of the price changes. A recursive mapping to a nationally representative household living standards survey permits us to identify in detail the ceteris paribus effects of the shock on household incomes and welfare. In this analysis, interregional and intersectoral labor market adjustments emerge as key channels transmitting the effects of global price shocks across sectors and among households.

Keywords: Vietnam; rice; poverty; labor mobility; general equilibrium; microsimulation. (search for similar items in EconPapers)
JEL-codes: D58 I32 Q17 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2012
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Global market shocks and poverty in Vietnam: the case of rice (2012)
Working Paper: Global Market Shocks and Poverty in Vietnam: The Case of Rice (2011)
Working Paper: Global Market Shocks and Poverty in Vietnam: The Case of Rice (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:3212

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