IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331873.html
   My bibliography  Save this paper

Impacts and Policy Responses to a commodity price boom. The case of Malawi

Author

Listed:
  • Conforti, Piero
  • Ferrari, Emanuele
  • Sarris, Alexander

Abstract

This work analyzes the medium term effects of the recent commodity price spike in a typical Low-Income-Food-Deficit country, Malawi, as well as a set of possible policy responses. Simulations were performed with a single-country static Computable General Equilibrium model, based on the 2004 Malawi Social Accounting Matrix provided by IFPRI, modified with data from the 2004 household budget survey. Results indicate that the increase in agricultural domestic prices was mainly driven by the raise in the cost of imported oil and chemical products. Reductions in tariff and domestic taxes, as well as subsidies on chemicals inputs, appear capable of counteracting the terms of trade shocks to some extent. However, tackling structural constraints, such as those affecting the size of agricultural marketing margins, would produce wider benefits, and improve the resilience of the economy to external shocks.

Suggested Citation

  • Conforti, Piero & Ferrari, Emanuele & Sarris, Alexander, 2009. "Impacts and Policy Responses to a commodity price boom. The case of Malawi," Conference papers 331873, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331873
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331873/files/4504.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    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. Yan, Bingqian & Xia, Yan & Jiang, Xuemei, 2023. "Carbon productivity and value-added generations: Regional heterogeneity along global value chain," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 111-125.
    2. Stefan Ederer & Stefan Weingärtner, 2014. "Structural Disparities in Carbon Dioxide Consumption and Trade in the World Economy. WWWforEurope Policy Paper No. 16," WIFO Studies, WIFO, number 47498.
    3. Airebule, Palizha & Cheng, Haitao & Ishikawa, Jota, 2023. "Assessing carbon emissions embodied in international trade based on shared responsibility," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    4. ZhongXiang Zhang, 2012. "Who should bear the cost of China’s carbon emissions embodied in goods for exports?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 103-117, June.
    5. Gabriela Michalek & Reimund Schwarze, 2015. "Carbon leakage: pollution, trade or politics?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(6), pages 1471-1492, December.
    6. Wang, Qiang & Han, Xinyu, 2021. "Is decoupling embodied carbon emissions from economic output in Sino-US trade possible?," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    7. Kirsten S. Wiebe & Martin Bruckner & Stefan Giljum & Christian Lutz, 2012. "Calculating Energy-Related Co 2 Emissions Embodied In International Trade Using A Global Input--Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 113-139, November.
    8. Marques, Alexandra & Rodrigues, João & Domingos, Tiago, 2013. "International trade and the geographical separation between income and enabled carbon emissions," Ecological Economics, Elsevier, vol. 89(C), pages 162-169.
    9. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    10. repec:grz:wpaper:2013-03 is not listed on IDEAS
    11. Chen, G.Q. & Chen, Z.M., 2011. "Greenhouse gas emissions and natural resources use by the world economy: Ecological input–output modeling," Ecological Modelling, Elsevier, vol. 222(14), pages 2362-2376.
    12. Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
    13. Liu, Ying & Jayanthakumaran, Kankesu & Neri, Frank, 2013. "Who is responsible for the CO2 emissions that China produces?," Energy Policy, Elsevier, vol. 62(C), pages 1412-1419.
    14. Nelly Exbrayat & Stéphane Riou & Skerdilajda Zanaj, 2015. "Carbon tax, pollution and the spatial location of heterogeneous firms," Post-Print halshs-01211431, HAL.
    15. Zafrilla, Jorge Enrique & López, Luis Antonio & Cadarso, María Ángeles & Dejuán, Óscar, 2012. "Fulfilling the Kyoto protocol in Spain: A matter of economic crisis or environmental policies?," Energy Policy, Elsevier, vol. 51(C), pages 708-719.
    16. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    17. Zhong, Zhangqi & Jiang, Lei & Zhou, Peng, 2018. "Transnational transfer of carbon emissions embodied in trade: Characteristics and determinants from a spatial perspective," Energy, Elsevier, vol. 147(C), pages 858-875.
    18. Yunfeng, Yan & Laike, Yang, 2010. "China's foreign trade and climate change: A case study of CO2 emissions," Energy Policy, Elsevier, vol. 38(1), pages 350-356, January.
    19. Zhou, Dequn & Zhou, Xiaoyong & Xu, Qing & Wu, Fei & Wang, Qunwei & Zha, Donglan, 2018. "Regional embodied carbon emissions and their transfer characteristics in China," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 180-193.
    20. Rahel Aichele & Gabriel Felbermayr, 2011. "Carbon Footprints," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(21), pages 11-16, November.
    21. Cristiano Cantore & Miguel León-Ledesma & Peter McAdam & Alpo Willman, 2014. "Shocking Stuff: Technology, Hours, And Factor Substitution," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 108-128, February.

    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:ags:pugtwp:331873. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.