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Household Exposure to Food Price Shocks in Rural Bangladesh

Author

Listed:
  • G. Jacoby , Hanan

    (World Bank)

  • Dasgupta, Basab

    (World Bank)

Abstract

Recent food price volatility has led to concerns about the exposure of the rural poor in Bangladesh to food price shocks. Yet, higher prices could also lead to improved terms of trade for sellers and higher rural wages for agricultural workers, both of which are likely to benefit the poor from rural areas. Our analysis shows that rural wages in Bangladesh responded positively to higher crop prices over the last decade. Moreover, using a general-equilibrium-consistent welfare index that accounts for such wage gains, we show that far from falling hardest on the poor the burden of higher food prices has been closer to being distributionally neutral.

Suggested Citation

  • G. Jacoby , Hanan & Dasgupta, Basab, 2014. "Household Exposure to Food Price Shocks in Rural Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(1-2), pages 83-100, March-Jun.
    • Handle: RePEc:ris:badest:0570
    as

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    References listed on IDEAS

    as
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    4. 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.
    5. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
    6. Wodon, Quentin & Tsimpo, Clarence & Backiny-Yetna, Prospere & Joseph, George & Adoho, Franck & Coulombe, Harold, 2008. "Potential impact of higher food prices on poverty : summary estimates for a dozen west and central African countries," Policy Research Working Paper Series 4745, The World Bank.
    7. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
    8. 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.
    9. Boyce, James K & Ravallion, Martin, 1991. "A Dynamic Econometric Model of Agricultural Wage Determination in Bangladesh," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 361-376, November.
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    Cited by:

    1. Martin Rama & Tara Béteille & Yue Li & Pradeep K. Mitra & John Lincoln Newman, 2015. "Addressing Inequality in South Asia," World Bank Publications - Books, The World Bank Group, number 20395.
    2. World Bank, 2013. "Bangladesh - Poverty Assessment : Assessing a Decade of Progress in Reducing Poverty, 2000-2010," World Bank Publications - Reports 16622, The World Bank Group.

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    More about this item

    Keywords

    Poverty; Food Security; Food Prices; Bangladesh;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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