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Food Policy And Poverty In Indonesia: A General Equilibrium Analysis

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  • Peter Warr

Abstract

Indonesia is the world’s largest importer of its staple food, rice. Since the economic crisis of 1998, rice import policy has become increasingly protectionist and since early 2004, imports have been banned. This paper uses a general equilibrium model of the Indonesian economy to analyze the effects of an import ban on rice, including its effects on poverty. The analysis recognizes 1,000 individual households. The results indicate that the rice import ban raises poverty incidence by a little less than one per cent of the population. Poverty rises in both rural and urban areas. Among farmers, only the richest gain.

Suggested Citation

  • Peter Warr, 2005. "Food Policy And Poverty In Indonesia: A General Equilibrium Analysis," Departmental Working Papers 2005-03, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2005-03
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    References listed on IDEAS

    as
    1. Peter Warr, 2008. "The transmission of import prices to domestic prices: an application to Indonesia," Applied Economics Letters, Taylor & Francis Journals, vol. 15(7), pages 499-503.
    2. George Fane & Peter Warr, 2002. "How Economic Growth Reduces Poverty: A General Equilibrium Analysis for Indonesia," WIDER Working Paper Series DP2002-19, World Institute for Development Economic Research (UNU-WIDER).
    3. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127.
    4. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-23.
    5. Peter G. Warr, 2001. "Welfare Effects of an Export Tax: Thailand's Rice Premium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 903-920.
    6. Warr, Peter G., 2005. "Food Policy And Poverty: A General Equilibrium Analysis For Indonesia," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139296, Australian Agricultural and Resource Economics Society.
    7. Codsi, George & Pearson, K R & Wilcoxen, Peter J, 1992. "General-Purpose Software for Intertemporal Economic Models," Computer Science in Economics & Management, Kluwer;Society for Computational Economics, vol. 5(1), pages 57-79, February.
    8. Andi Irawan, 1997. "Kebijakan Harga dan Keberlanjutan Produksi Padi," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 45, pages 579-586, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    poverty; general equilibrium; rice imports; trade policy.;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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