IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v29y2012i5p1986-1995.html
   My bibliography  Save this article

Distributional effects of rising food prices in Pakistan: Evidence from HIES 2001–02 and 2005–06 survey

Author

Listed:
  • Mohsin, Asma
  • Zaman, Khalid

Abstract

The distributional characteristic measures how evenly or unevenly commodity group is distributed over the household total expenditure. The present study investigates the distributional effects of rising food prices in Pakistan. For this purpose, this study focuses on two different household integrated economic surveys (HIES) i.e., 2001–02 and 2005–06 and analyze the distributional effects for rural and urban segments of Pakistan. As there are considerable differences in the composition of the consumption basket between rural and urban, so the survey data of both years is disaggregated into four sub-samples which may divide according to the expenditure levels of rural–urban segments based on head count index. The result reveals that the distributional characteristic of meat, fruits, soft drinks and all ready‐made food products are low which implies that expenditures on these commodities are unevenly distributed over the total expenditures which favor rich families. It is evident that cereals, pulses and dairy products are the major source of welfare in rural–urban poors in Pakistan.

Suggested Citation

  • Mohsin, Asma & Zaman, Khalid, 2012. "Distributional effects of rising food prices in Pakistan: Evidence from HIES 2001–02 and 2005–06 survey," Economic Modelling, Elsevier, vol. 29(5), pages 1986-1995.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1986-1995
    DOI: 10.1016/j.econmod.2012.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999312001757
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2012.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Creedy & Justin Van De Ven, 1997. "The Distributional Effects of Inflation in Australia 1980–1995," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(2), pages 125-143, June.
    2. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    3. Mellor, John W, 1978. "Food Price Policy and Income Distribution in Low-Income Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 27(1), pages 1-26, October.
    4. Newbery, David M, 1995. "The Distributional Impact of Price Changes in Hungary and the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(431), pages 847-863, July.
    5. Hubbard, Carmen & Thomson, Kenneth J., 2007. "Romania's accession to the EU: Short-term welfare effects on food consumers," Food Policy, Elsevier, vol. 32(1), pages 128-140, February.
    6. Arndt, Channing & Benfica, Rui & Maximiano, Nelson & Nucifora, Antonio M.D. & Thurlow, James, 2008. "Higher fuel and food prices: Economic impacts and responses for Mozambique," IFPRI discussion papers 836, International Food Policy Research Institute (IFPRI).
    7. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
    8. Jorge N. Valero‐Gil & Magali Valero, 2008. "The effects of rising food prices on poverty in Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 485-496, November.
    9. Zezza, Alberto & Davis, Benjamin & Azzarri, Carlo & Covarrubias, Katia & Tasciotti, Luca & Anríquez, Gustavo, 2008. "The impact of rising food prices on the poor," ESA Working Papers 289027, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    10. Saadia Refaqat, 2005. "Redistributive Impact of GST Tax Reform: Pakistan, 1990-2001," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 841-862.
    11. Channing Arndt & Rui Benfica & Nelson Maximiano & Antonio M. D. Nucifora & James T. Thurlow, 2008. "Higher fuel and food prices: impacts and responses for Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 497-511, November.
    12. Rafael E. de Hoyos & Denis Medvedev, 2011. "Poverty Effects of Higher Food Prices: A Global Perspective," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 387-402, August.
    13. Henna Ahsan & Zainab Iftikhar & M. Ali Kemal, 2011. "The Determinants of Food Prices: A Case Study of Pakistan," PIDE-Working Papers 2011:76, Pakistan Institute of Development Economics.
    14. John Creedy, 1998. "Measuring the Welfare Effects of Price Changes: A Convenient Parametric Approach," Australian Economic Papers, Wiley Blackwell, vol. 37(2), pages 137-151, June.
    15. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-585, July.
    16. Dale E. Hathaway, 1974. "Food Prices and Inflation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 5(1), pages 63-116.
    17. Quentin Wodon & Hassan Zaman, 2010. "Higher Food Prices in Sub-Saharan Africa: Poverty Impact and Policy Responses," The World Bank Research Observer, World Bank, vol. 25(1), pages 157-176, February.
    18. Muhammad Ali & Syed Arifullah & Manzoor Hussain Memon, 2008. "Edible Oil Deficit and Its Impact on Food Expenditure in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 531-546.
    19. Huseyin Özer, 2003. "Consumption Patterns of Major Food Items in Turkey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(1), pages 29-40.
    20. repec:bla:ausecp:v:37:y:1998:i:2:p:137-51 is not listed on IDEAS
    21. Abid Hussain & Jayant Kumar Routray, 2012. "Status and factors of food security in Pakistan," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(2), pages 164-185, June.
    22. David Madden, 2009. "Distributional Characteristics for Ireland: A Note," Working Papers 200910, School of Economics, University College Dublin.
    23. Haadia Arshad & Muhammad Idrees, 2008. "Trends in Polarisation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(2), pages 153-167.
    24. Umer Khalid & Sajjad Akhtar, 2011. "Poverty Dynamics of Female-headed Households in Pakistan: Evidence from PIHS 2000-01 and PSLM 2004-05," PIDE-Working Papers 2011:80, Pakistan Institute of Development Economics.
    25. Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(1), pages 27-51, January.
    26. Christopher Adam & Olu Ajakaiye, 2011. "Causes, Consequences and Policy Implications of Global Food Price Shocks: Introduction and Overview," Journal of African Economies, Centre for the Study of African Economies, vol. 20(suppl_1), pages -11, May.
    27. Cardwell, Ryan T. & Barichello, Richard R., 2009. "High Food Prices and Developing Countries: Policy Responses at Home and Abroad," Commissioned Papers 54970, Canadian Agricultural Trade Policy Research Network.
    28. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    29. Feldstein, Martin S, 1972. "Distributional Equity and the Optimal Structure of Public Prices," American Economic Review, American Economic Association, vol. 62(1), pages 32-36, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bambang SETIAJI & Henri D. WAHYUDI & Ihwan SUSILA, 2017. "Supply Chain of the Beef Market in Indonesia," Expert Journal of Business and Management, Sprint Investify, vol. 5(2), pages 129-135.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elleby, Christian, 2014. "Poverty and Price Transmission," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182722, European Association of Agricultural Economists.
    2. Verpoorten, Marijke & Arora, Abhimanyu & Stoop, Nik & Swinnen, Johan, 2013. "Self-reported food insecurity in Africa during the food price crisis," Food Policy, Elsevier, vol. 39(C), pages 51-63.
    3. Nora Lustig, 2009. "Coping with Rising Food Prices: Policy Dilemmas in the Developing World," Working Papers 0907, Tulane University, Department of Economics.
    4. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
    5. Derek Headey & Marie Ruel, 2023. "Food inflation and child undernutrition in low and middle income countries," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    6. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    7. Derek Headey & Olivier Ecker & Jean-Francois Trinh Tan, 2014. "Shocks to the system: monitoring food security in a volatile world," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 3, pages 41-71, Edward Elgar Publishing.
    8. Estrades, Carmen & Terra, María Inés, 2012. "Commodity prices, trade, and poverty in Uruguay," Food Policy, Elsevier, vol. 37(1), pages 58-66.
    9. Headey, Derek, 2011. "Was the global food crisis really a crisis?: Simulations versus self-reporting," IFPRI discussion papers 1087, International Food Policy Research Institute (IFPRI).
    10. Salvucci, Vincenzo & Tarp, Finn, 2024. "Crises, prices, and poverty – An analysis based on the Mozambican household budget surveys 1996/97–2019/20," Food Policy, Elsevier, vol. 125(C).
    11. Andy McKay & Finn Tarp, 2014. "Distributional Impacts of the 2008 Global Food Price Spike in Vietnam," WIDER Working Paper Series wp-2014-030, World Institute for Development Economic Research (UNU-WIDER).
    12. Dalheimer, Bernhard & Herwartz, Helmut & Lange, Alexander, 2021. "The threat of oil market turmoils to food price stability in Sub-Saharan Africa," Energy Economics, Elsevier, vol. 93(C).
    13. Rudolf, Robert, 2019. "The impact of maize price shocks on household food security: Panel evidence from Tanzania," Food Policy, Elsevier, vol. 85(C), pages 40-54.
    14. Negi, Digvijay S., 2022. "Global food price surge, in-kind transfers and household welfare: Evidence from India," World Development, Elsevier, vol. 158(C).
    15. Derek Headey & Sangeetha Malaiyandi & Shenggen Fan, 2010. "Navigating the perfect storm: reflections on the food, energy, and financial crises," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 217-228, November.
    16. Levin, Jörgen & Vimefall, Elin, 2015. "Welfare impact of higher maize prices when allowing for heterogeneous price increases," Food Policy, Elsevier, vol. 57(C), pages 1-12.
    17. José Cuesta & Suzanne Duryea & Fidel Jaramillo & Marcos Robles, 2010. "Distributive impacts of the food price crisis in the Andean region," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 846-865.
    18. Digvijay S. Negi, 2022. "Global food price surge, in-kind transfers, and household welfare evidence from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2022-006, Indira Gandhi Institute of Development Research, Mumbai, India.
    19. Balié, Jean & Minot, Nicholas & Valera, Harold Glenn A., 2021. "Distributional impacts of the rice tariffication policy in the Philippines," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 289-306.
    20. Derek D. Headey, 2013. "The Impact of the Global Food Crisis on Self-Assessed Food Security," The World Bank Economic Review, World Bank, vol. 27(1), pages 1-27.

    More about this item

    Keywords

    Food inflation; Distributional characteristics; Consumption basket; Agriculture; Pakistan;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Recognized plagiarism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1986-1995. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.