scholarly journals Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faharuddin Faharuddin ◽  
M. Yamin ◽  
Andy Mulyana ◽  
Y. Yunita

PurposeUsing cross-sectional household survey data, this paper aims to determine the impact of food price increases on poverty in Indonesia.Design/methodology/approachThis paper uses the quadratic almost ideal demand system applied to the 2013 Indonesian household survey data. The impact of food price increase on household welfare is calculated using a welfare measure, compensating variation.FindingsThree food groups with the most outstanding price impact on poverty are rice, vegetables and fish were studied. The 20% increase in the price of each food group causes an increase in the headcount ratio by 1.360 points (rice), 0.737 points (vegetables) and 0.636 points (fish). Maintaining food price stability for these food groups is very important because the more price increases, the more impact on poverty. Food price policies in rural areas are also more critical than in urban areas because the impact of food price increases in rural areas is higher.Research limitations/implicationsThis paper does not consider the positive impact of rising food prices on food-producing households.Practical implicationsImplementing appropriate poverty alleviation policies through food policies for main food groups and social protection.Social implicationsPromoting rural development policies and agricultural growth.Originality/valueThis paper contributes to the existing literature by providing empirical results regarding the impact of domestic food prices increase on poverty in Indonesia.

2020 ◽  
Vol 11 (3) ◽  
pp. 381-402 ◽  
Author(s):  
Ikechukwu Darlington Nwaka ◽  
Seyi Saint Akadiri ◽  
Kalu Ebi Uma

PurposeAre the urban and rural male-headed households (MHHs) or female-headed households (FHHs) poorer and food (in)secured? Such question is of very important policy concern in the drive towards achieving the first two of the Sustainable Development Goals.Design/methodology/approachThis paper uses 2010–2012 waves of General Household Survey cross-sectional panel data to investigate food (in)security and poverty dynamics amongst MHHs and FHHs in Nigeria, with particular attention to rural and urban dimensions.FindingsApplying the tobit and probit regressions while controlling for poverty and other household characteristics, we observed that female-headed families are more vulnerable to higher incidences of food insecurity than male-headed ones and with an overall significant urban food security advantage compared to rural areas. Comparing urban and rural results in terms of land access rights, urban food insecurity manifests more amongst urban FHHs non–Agri-land owners which however falls as food expenditure rises. However, the rise in per capita food consumption, agricultural characteristics and years of schooling reduces the likelihood of food insecurity for all households.Originality/valueThis study, therefore, offers relevant policy inputs towards addressing poverty and food insecurity in a typical developing country such as Nigeria.


2017 ◽  
Vol 7 (3) ◽  
pp. 198-217 ◽  
Author(s):  
Faharuddin Faharuddin ◽  
Andy Mulyana ◽  
M. Yamin ◽  
Yunita Yunita

Purpose The purpose of this paper is to assess nutrients elasticities of calories, proteins, fats, and carbohydrates in Indonesia. Design/methodology/approach Quadratic Almost Ideal Demand System is used on Indonesian socioeconomic household survey data. Findings Expenditure elasticities of nutrients in overall model range from 0.707 (for carbohydrates) to 1.085 (for fats), but expenditure elasticities in rural areas are higher than those in urban area. Most of price elasticities of nutrients have very small absolute value (not elastic) and all values are lower than the expenditure elasticities. However, the price of five groups of food commodities, namely, rice, oil and grease, fishes, meat, and other foods give significant influence on nutrients consumption. Research limitations/implications This research only includes four micronutrients, namely, calorie, protein, fat, and carbohydrate. Originality/value This research is one of very limited literatures about nutrient elasticity of food consumption in Indonesia.


2008 ◽  
Vol 13 (Special Edition) ◽  
pp. 117-138 ◽  
Author(s):  
Theresa Thompson Chaudhry ◽  
Azam Amjad Chaudhry

The dramatic increase in international food and fuel prices in recent times is a crucial issue for developing countries and the most vulnerable to these price shocks are the poorest segments of society. In countries like Pakistan, the discussion has focused on the impact of substantially higher food and fuel prices on poverty. This paper used PSLM and MICS household level data to analyze the impact of higher food and energy prices on the poverty head count and the poverty gap ratio in Pakistan. Simulated food and energy price shocks present some important results: First, the impact of food price increases on Pakistani poverty levels is substantially greater than the impact of energy price increases. Second, the impact of food price inflation on Pakistani poverty levels is significantly higher for rural populations as compared to urban populations. Finally, food price inflation can lead to significant increases in Pakistani poverty levels: For Pakistan as a whole, a 20% increase in food prices would lead to an 8% increase in the poverty head count.


Food Security ◽  
2020 ◽  
Author(s):  
Abdoul G. Sam ◽  
Babatunde O. Abidoye ◽  
Sihle Mashaba

Abstract The fifth assessment report of the Intergovernmental Panel on Climate Change and several studies suggest that climate change is expected to increase food insecurity and poverty in many parts of the world. In this paper, we adopt a microeconometric approach to empirically estimate the impact of climate change-induced hikes in cereal prices on household welfare in Swaziland (also Kingdom of Eswatini). We do so first by econometrically estimating expenditure and price elasticities of five food groups consumed by households in Swaziland using the Almost Ideal Demand System (AIDS), based on data from the 2009/2010 Swaziland Household Income and Expenditure Survey. Second, we use the estimated expenditure and compensated elasticities from the AIDS model, food shares from the household survey, and food price projections developed by the International Food Policy Research Institute (IFPRI) to estimate the proportionate increase in income required to maintain the level of household utility that would have prevailed absent an increase in food prices. Our results show increases in cereal prices due to climate change are expected to double extreme poverty in urban areas and increase poverty in rural areas of the country to staggering levels - between 71 and 75%, compared to 63% before the price changes. Income transfers of between 17.5 and 25.4% of pre-change expenditures are needed to avoid the welfare losses.


2018 ◽  
Vol 10 (4) ◽  
pp. 572-588 ◽  
Author(s):  
Song Qu ◽  
Nico Heerink ◽  
Ying Xia ◽  
Junping Guo

Purpose The purpose of this paper is to examine the impact of the compensation amount as well as the mode through which compensations are paid on farmers’ satisfaction with the compensation received for farmland expropriation in China. Design/methodology/approach Using rural household survey data collected among 450 households in three provinces, located in eastern, central and western China, this paper estimates the impacts of compensation payments, compensation modes, household characteristics and other control variables on farmers’ satisfaction applying an ordinal probit model. Findings The major findings are: farmers’ satisfaction with the compensation depends not only on the size of the compensation but also on the gap between the compensation and the market value of the expropriated land; and the compensation amount positively affects farmers’ satisfaction when the social security compensation mode is used, but does not significantly affect farmers’ satisfaction when other modes are used. Originality/value First, it contributes to the literature on farmland expropriation by providing empirical evidence of the direct impact of the compensation amount and other factors on the degree of farmers’ satisfaction with farmland compensations. Second, potential interactions between compensation amount and compensation mode are taken into account in estimating factors affecting farmers’ satisfaction.


Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6545 ◽  
Author(s):  
Monika Roman ◽  
Aleksandra Górecka ◽  
Joanna Domagała

This paper aims to indicate the linkages between crude oil prices and selected food price indexes (dairy, meat, oils, cereals, and sugar) and provide an empirical specification of the direction of the impact. This paper reviews the fuel–food price linkage models with consideration to the time series literature. This study adopts several methods, namely the Augmented Dickey–Fuller test, Granger causality test, the cointegration test, the vector autoregression model, and the vector error correction model, for studying the price transmission among the crude oil and five selected food groups. The data series covers the period between January 1990 and September 2020. The empirical results from the paper indicate that there are long-term relationships between crude oil and meat prices. The linkage of crude oil prices occurred with food, cereal, and oil prices in the short term. Furthermore, the linkages between the analyzed variables increased in 2006–2020.


2020 ◽  
Vol 47 (2) ◽  
pp. 223-243
Author(s):  
Nigar Zehra

Purpose The purpose of this paper is to find the impact of food price volatility on child health and education attainment in urban areas of Pakistan. This research also compares the two variables among the two time periods: the period of low volatile food prices (2014‒2015) and the period of high volatile food prices (2013‒2014). The rate of child immunization and the rate of child school attendance are used as proxies for child health and child education, respectively. Design/methodology/approach This study employs propensity score matching (PSM) technique introduced by Rosenbaum and Rubin (1983), to overcome the selection bias problem in the observational studies. Findings The closing part of the paper concludes that both the rate of child immunization and the rate of child school attendance are significantly poorer for the households of Pakistan in the control period (of high food price volatility) as compared to the treated period (of low food price volatility). After controlling the problem of selection bias through PSM technique, it is found that there is a further increase in the rate of child immunization and the rate of child school attendance. It proves that the data were biased before applying the matching technique. Originality/value This study lengthens the literature by identifying the impact of food price volatility on child health and education of urban households of Pakistan, using high frequency data of PSLM/HIES, with the help of semi-parametric technique of matching. This type of micro-level research has not been conducted (nationally or internationally) so far; therefore, it would possibly open a sphere for policy makers to implement the suitable policies. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2019-0275.


2020 ◽  
Vol 35 (1) ◽  
Author(s):  
Rodhiah Umaroh ◽  
Evita Hanie Pangaribowo

Introduction/Main Objectives: Significant price increases of food commodities and uncertainty in the market probably have a severe impact on society and especially on the low-income households in it. Background Problems: The increases in food price could have a large impact on the economy and specifically on that of households. Thus, the study was conducted to investigate what the demand for food specifically high-nutrient food and the impact on welfare are like in Indonesian households when food prices rise. Novelty: There were bulk of empirical researches on the impact of food price changes on household welfare, however the study focused on high-nutrient commodities in particular on the self-produced food was still limited. many of the previous studies used cross-section data for one period but this study used two-wave longitudinal data Research Methods: Using large sample data from Indonesian Family Life Survey (IFLS), the study employed the Quadratic Almost Ideal Demand System (QUAIDS) to identify the demand pattern and applied Compensating Variation (CV) to understand the impact of soaring food price on welfare change Finding/Results: Overall, The analysis of welfare impact notes that when the price increases, all household groups would experience welfare loss. The poorest household would be lower in level of experiencing welfare loss than the richest household while more welfare loss is suffered by households that live in Java and rural areas. Conclusion: For the low-income households, having their own productive farm could overcome an economic shock threatening them. Thus, the government should support small-scale farming through such strategic policies as giving them input assistance and training in how to manage a small farm.m.


BMJ Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. e039211
Author(s):  
Triasih Djutaharta ◽  
Nachrowi Djalal Nachrowi ◽  
Aris Ananta ◽  
Drajat Martianto

ObjectiveTo examine the impact of cigarette price and smoking environment on allocation of household expenditure and its implication on nutrition consumption.DesignA cross-sectional study was conducted using the 2014 National Socioeconomic Survey (SUSENAS), the 2014 Village Potential Survey (PODES) and the 2013 Basic National Health Survey (RISKESDAS). SUSENAS and PODES data were collected by the Central Bureau of Statistics. RISKESDAS was conducted by National Institute of Health Research and Development (Balitbangkes), Indonesian Ministry of Health (MOH).Setting and participantsThe sample covered all districts in Indonesia; with sample size of 285 400 households. These households are grouped into low, medium and high smoking prevalence districts.Primary and secondary outcome measuresThe impact of cigarette price and smoking environment on household consumption of cigarette, share of eight food groups, as well as calorie and protein intake.Result1% increase in cigarette price will increase the cigarette budget share by 0.0737 points and reduce the budget share for eggs/milk, prepared food, staple food, nuts, fish/meat and fruit, from 0.0200 points (eggs/milk) up to 0.0033 points (fruit). Reallocation of household expenditure brings changes in food composition, resulting in declining calorie and protein intake. A 1% cigarette price increase reduces calorie and protein intake as much as 0.0885% and 0.1052%, respectively. On the other hand, existence of smoke-free areas and low smoking prevalence areas reduces the household budget for cigarettes.ConclusionA pricing policy must be accompanied by non-pricing policies to reduce cigarette budget share.


2021 ◽  
pp. jech-2020-216030
Author(s):  
Benjamin J Gray ◽  
Richard G Kyle ◽  
Jiao Song ◽  
Alisha R Davies

BackgroundThe public health response to the SARS-CoV-2 (COVID-19) pandemic has had a detrimental impact on employment and there are concerns the impact may be greatest among the most vulnerable. We examined the characteristics of those who experienced changes in employment status during the early months of the pandemic.MethodsData were collected from a cross-sectional, nationally representative household survey of the working age population (18–64 years) in Wales in May/June 2020 (n=1379). We looked at changes in employment and being placed on furlough since February 2020 across demographics, contract type, job skill level, health status and household factors. χ2 or Fisher’s exact test and multinomial logistic regression models examined associations between demographics, subgroups and employment outcomes.ResultsOf our respondents, 91.0% remained in the same job in May/June 2020 as they were in February 2020, 5.7% were now in a new job and 3.3% experienced unemployment. In addition, 24% of our respondents reported being placed on furlough. Non-permanent contract types, individuals who reported low mental well-being and household financial difficulties were all significant factors in experiencing unemployment. Being placed on ‘furlough’ was more likely in younger (18–29 years) and older (60–64 years) workers, those in lower skilled jobs and from households with less financial security.ConclusionA number of vulnerable population groups were observed to experience detrimental employment outcomes during the initial stage of the COVID-19 pandemic. Targeted support is needed to mitigate against both the direct impacts on employment, and indirect impacts on financial insecurity and health.


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