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Publication Details
AFRICAN RESEARCH NEXUS
SHINING A SPOTLIGHT ON AFRICAN RESEARCH
Higher fuel and food prices: Impacts and responses for Mozambique
Agricultural Economics, Volume 39, No. SUPPL. 1, Year 2008
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Description
Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price rises are analyzed using various approaches. Detailed price data show that the world price increases are being transmitted to domestic prices. Short-run net benefit ratio analysis indicates that urban households and households in the southern region are more vulnerable to food price increases. Rural households, particularly in the North and Center, often benefit from being in a net seller position. Longer-term analysis using a computable general equilibrium (CGE) model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Again, negative impacts are larger in urban areas. The importance of agricultural production response in general and export response in particular is highlighted. Policy analysis reveals difficult trade-offs between short-run mitigation and long-run growth. Improved agricultural productivity has powerful positive impacts, but remains difficult to achieve and may not address the immediate impacts of higher prices. © 2008 International Association of Agricultural Economists.
Authors & Co-Authors
Arndt, Channing
Denmark, Copenhagen
Development Economics Research Group
Benfica, Rui
United States, Washington, D.c.
The World Bank, Usa
Maximiano, Nelson
Mozambique, Maputo
Ministry of Planning and Development
Nucifora, Antonio M.D.
United States, Washington, D.c.
The World Bank, Usa
Thurlow, James T.
United States, Washington, D.c.
International Food Policy Research Institute
Statistics
Citations: 151
Authors: 5
Affiliations: 4
Identifiers
Doi:
10.1111/j.1574-0862.2008.00355.x
e-ISSN:
15740862
Research Areas
Food Security
Health System And Policy
Study Locations
Mozambique