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The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from EthiopianCoffee Farmers

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  • Kebede,Hundanol Atnafu

Abstract

International commodity price shocks may have large impacts on producers in developing countries.In this paper, a unique household panel data from Ethiopia is utilize to show that a decrease in international coffeeprice has strong pass-through to the consumption of households that rely on coffee production as a main sourceof livelihood. It also results in decreases in on-farm labor supply (particularly male labor supply) and inducesreallocation of labor towards non-coffee fields, but has negligible effect on off-farm labor supply. The decline inconsumption has significant consequences on child malnutrition: children born in coffee-producing householdsduring low coffee price periods have lower weight-to-age and weight-to-height z-scores than their peers born innon-coffee households.

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  • Kebede,Hundanol Atnafu, 2021. "The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from EthiopianCoffee Farmers," Policy Research Working Paper Series 9839, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9839
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    Cited by:

    1. Negi, Digvijay S., 2022. "Global food price surge, in-kind transfers and household welfare: Evidence from India," World Development, Elsevier, vol. 158(C).
    2. Kebede, Hundanol A., 2022. "Market integration and separability of production and consumption decisions in farm households," Journal of Development Economics, Elsevier, vol. 158(C).
    3. 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.

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    Keywords

    Labor Markets; Health Care Services Industry; Nutrition; International Trade and Trade Rules;
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