The Impact of World Food Price Fluctuation towards Indonesian Macroeconomics

<p class="Normal1"><span class="normalchar"><em>Stability of price is a crucial factor for export and import activities, especially food commodities.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>Indonesia with the characteristics of a small open economy are vulnerable to external price shock as the implication of economic globalization.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>Understanding the food price shock useful for designing risk mitigation to minimize the effects of shocks to macroeconomic variables.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>The purpose of this research is to analyze the impact of macroeconomics from </em></span><span class="normalchar"><em><span lang="EN-US">V</span>ector </em></span><span class="normalchar"><em><span lang="EN-US">A</span>uto</em></span><span class="normalchar"><em><span lang="EN-US">-R</span>egression (VAR) methods.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>The sensitivity of impulse response estimation and variance decomposition which outlines how large and how the effect of the food price shock.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>Impulse response analysis shows shocks on global food price got the response by fastest and the most powerful by inflation.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>While the description of variance decomposition, variation described by economic growth.</em></span><span class="apple-converted-space"><span> </span></span><span class="normalchar"><em>The results show that the global food price affects economic growth that is transmitted through inflation.</em></span></p>

Food price shock will hit Zimbabwe economy

Headline ZIMBABWE: Food price shock to hit economy

Simulating the Impact of Exogenous Food Price Shock on Agriculture and the Poor in Nigeria: Results from a Computable General Equilibrium Model

<p>Motivated by the recent global economic crisis, this paper simulated the impact of a rise in the price of imported food on agriculture and household poverty in Nigeria using a computable general equilibrium (CGE) model and the Foster, Greer and Thorbecke (FGT) class of decomposable poverty measures on the 2006 social accounting matrix (SAM) of Nigeria and the updated 2004 Nigeria Living Standards Survey (NLSS) data. Results show that a rise in import price of food increased domestic output of food, but reduced the domestic supply of other agricultural commodities as well as food and other agricultural composites. Furthermore, a rise in the import price of food increased poverty nationally and among all household groups, with rural-north households being the least affected by the shock, while their rural-south counterparts were the most affected. A major policy implication drawn from this paper is that high import prices in import competing sectors like agriculture tend to favour the sector but exacerbate poverty in households. Thus, efforts geared at addressing the impact of this shock should strive to balance welfare and efficiency issues.</p>