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The Poverty and Welfare Effects of the 2008 Food Price Crisis in Vietnam: A Decomposition Analysis
Author(s) -
Phung Tung Duc,
Waibel Hermann
Publication year - 2014
Publication title -
world food policy
Language(s) - English
Resource type - Journals
ISSN - 2372-8639
DOI - 10.18278/wfp.1.2.4
Subject(s) - poverty , welfare , economics , food prices , standard of living , panel data , percentage point , demographic economics , development economics , agricultural economics , food security , economic growth , geography , econometrics , agriculture , market economy , archaeology , finance
Using panel data from the Vietnam Household Living Standard Surveys (VHLSS), this paper examines the impacts of food price increases on welfare and poverty in Vietnam. It is found that on average the rise in food prices increased household welfare by 7.5 percentage points. However, the percentage of households who gained from the increase in food prices is much smaller than of those who lost. The absolute number of people living in poverty increased by about 2.5 percentage points and the poverty gap deepened, but these effects varied greatly across regions. Producers' supply reactions were moderate and on the demand side only poor consumers showed strong reactions.