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Agricultural price distortions, poverty, and inequality in the Philippines (English)

This paper analyzes the poverty and inequality implications of removing agricultural and non-agricultural price distortions in the domestic market of the Philippines and abroad. Liberalization in the rest of the world is poverty and inequality reducing, whereas full domestic liberalization increases national poverty and inequality. Poverty declines while inequality increases marginally in the combined scenario of both global and domestic agriculture reform. Although the reduction in the national poverty headcount is small in the latter scenario, the poorest of the poor, particularly those living in the rural areas, emerge as 'winners', given their strong reliance on agricultural production and unskilled labor wages.

Details

  • Author

    Cororaton, Caesar B Corong, Erwin Cockburn, John

  • Document Date

    2009/06/01

  • Document Type

    Working Paper (Numbered Series)

  • Report Number

    55940

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Philippines,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2010/08/04

  • Disclosure Status

    Disclosed

  • Doc Name

    Agricultural price distortions, poverty, and inequality in the Philippines

  • Keywords

    Agriculture;Family Income and Expenditure Survey;Poverty & Inequality;consumer price;agricultural sector;import price;world trade liberalization;real exchange rate depreciation;real exchange rate appreciation;constant elasticity of substitution;increase consumer price;labor share;consumer price index;unilateral trade liberalization;processed food;export demand;unilateral liberalization;agricultural trade liberalization;domestic price;national poverty headcount;gross domestic product;domestic demand;export price;fruit and vegetable;impact on poverty;domestic sale;household income;agricultural capital;nominal income;agricultural distortions;agricultural output;national household survey;expenditure on food;applied tariff rates;export processing zone;nominal income growth;consumption of good;nominal exchange rate;social accounting matrix;demand for good;amount of export;trade liberalization scenarios;higher value added;agriculture and service;multilateral trading system;trade reform programs;ratio of prices;investments in agriculture;trade liberalization efforts;efficient resource allocation;change in poverty;global trade liberalization;domestic interest groups;tariff adjustment process;information technology products;income of household;import substitution policy;Computable General Equilibrium;labor market condition;initial tariff rate;rural headcount index;animal feed ingredient;direct income tax;poverty headcount index;elasticity of export;linear expenditure system;factor of production;trade liberalization process;unskilled worker;nominal rate;coconut oil;fish processing;domestic liberalization;trade distortion;real income;Exchange Rates;agricultural protection;international market;sensitivity analysis;poor household;agricultural import;sugar mill;tariff binding;sectoral employment;export market;domestic trade;industrial sector;agricultural production;domestic agriculture;transport equipment;factor return;government balance;

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Citation

Cororaton, Caesar B Corong, Erwin Cockburn, John

Agricultural price distortions, poverty, and inequality in the Philippines (English). Agricultural Distortions working paper ; no. 101 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/278231468094771397/Agricultural-price-distortions-poverty-and-inequality-in-the-Philippines