The Pass-Through of International Commodity Price Shocks to Producers’ Welfare
International commodity price shocks may have large impacts on producers in developing countries. In this paper, a unique household panel data from Ethiopia is utilized to show that a decrease in international coffee price has strong pass-through to the consumption of households that rely on coffee production as a main source of livelihood. It also results in decreases in on-farm labor supply (particularly male labor supply) and induces reallocation of labor towards non-coffee fields but has negligible effect on off-farm labor supply. The decline in consumption has significant consequences on child malnutrition: children born in coffee-producing households during low coffee price periods have lower weight-for-age and weight-for-height z-scores than their peers born in non-coffee households.
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| Format: | Journal Article biblioteca |
| Language: | English en_US |
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Published by Oxford University Press on behalf of the World Bank
2021-09-16
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| Subjects: | CHILD HEALTH, COMMODITY PRICE SHOCKS, CONSUMPTION SMOOTHING, ETHIOPIA, INCOME SHOCKS, |
| Online Access: | http://documents.worldbank.org/curated/en/099950212082317761/IDU0e8e495ee0bfaf0470e082720cda369ad8a02 https://openknowledge.worldbank.org/handle/10986/40901 |
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