The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from Ethiopian Coffee Farmers
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 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-to-age and weight-to-height z-scores than their peers born in non-coffee households.
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021-11
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| Subjects: | COMMODITY PRICES, COFFEE PRICE, PRICE SHOCK, EXCHANGE RATE, HOUSEHOLD CONSUMPTION, CHILD NUTRITION, MALNUTRITION, |
| Online Access: | http://documents.worldbank.org/curated/undefined/181101636119195700/The-Pass-Through-of-International-Commodity-Price-Shocks-to-Producers-Welfare-Evidence-from-Ethiopian-Coffee-Farmers http://hdl.handle.net/10986/36551 |
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| Summary: | 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 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-to-age and
weight-to-height z-scores than their peers born in
non-coffee households. |
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