GTAP Resources: Resource Display
| GTAP Resource #4251 |
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"Food Price Shocks and their Impacts on Ethiopia: Policy Options to Lessen the Impacts on the Poor" by Abdella Ababulgu, Amin and Scott McDonald Abstract Despite the growth in GDP of Ethiopia over the last decade, the increases in the relative prices of food since 2007/8 have had substantial negative effects on welfare, especially among poorer households. Many of the factors driving these increases in real prices are external to Ethiopia, in particular the rising world prices of food, driven in part by increases in global demand associated with rising real incomes, population growth and biofuel programmes and in part by fluctuations in global supply consequent, inter alia, upon weather induced reductions in yields. By way of contrast Ethiopia has experienced relatively normal agricultural productivity in recent years although growing incomes and population have produced increases in domestic demand. In an economy like Ethiopia’s, where a large proportion of the population are dependent on agriculture for their livelihoods increasing food prices can produce effects that differ widely by household: increase in output prices can have large positive impacts on the incomes of agricultural producer households while having negative impacts on food consumers. However in Ethiopia the positive implications are likely to be muted because the very high trade and transport margins associated with domestic agricultural production inhibit the extent to which producer/farmgate prices increase. |
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- Economic analysis of poverty - Food prices and food security - Africa (East) |
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Public Access  GTAP Resource 4251 (36.6 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
