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    Rice Reforms and Poverty in the Philippines: A CGE Analysis

    Cororaton, Caesar B. | July 2004
    Abstract
    The quantitative restriction (QR) on rice will last until the end of 2004. The paper employs a computable general equilibrium (CGE) model to analyze the possible poverty and distributional effects of the removal of QR and the reduction in tariff on rice imports. Policy experiments indicate that while market reforms in rice lead to a reduction in the overall headcount poverty index, both the poverty gap and the squared poverty gap indices increase. The Gini coefficient increases as well. In general, these results imply that the poorest of the poor are adversely affected. In particular, while market reforms in rice bring about a reduction in consumer prices that is favorable to all, imports of rice surge and generate displacement effects on poor households that rely heavily on agriculture for factor incomes, particularly on palay rice production and other related activities. Palay production and its output price decline. This translates to lower demand for factor inputs in the sector, lower factor prices in agriculture, and lower factor incomes for these households. Thus, poverty in these groups, as well as the general income inequality, deteriorates. However, the results of the experiments involving various poverty-offsetting measures indicate that an increase in direct government transfers to these household groups can provide a better safety net.
    Citation
    Cororaton, Caesar B.. 2004. Rice Reforms and Poverty in the Philippines: A CGE Analysis. © Asian Development Bank. http://hdl.handle.net/11540/3596. License: CC BY 3.0 IGO.
    Keywords
    Commercial agriculture
    Agriculture
    Sustainable agriculture
    Trade Volume
    Agricultural Trade
    Food Security And Trade
    Regional Trade Agreements
    Agroindustry
    Agricultural trade
    Commercial farming
    Agroindustry
    Sustainable development
    Export volume
    Export Development
    Access to markets
    Agricultural market
    Agricultural economy
    Distribution
    Agricultural diversification
    Agricultural resource
    Farm produce
    Land capability for agriculture
    Food Supply
    Rural land use
    Technological innovations
    Agricultural innovations
    Farm supply industry
    Natural resource
    Adaptive natural resource management
    Produce trade
    Poor
    Price Indexes
    Intergrated rural development
    Cost and standard of living
    Population
    Crop improvement
    Rice farming
    Crop
    Food industry
    Perishable goods
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    Citable URI
    http://hdl.handle.net/11540/3596
    Metadata
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    Author
    Cororaton, Caesar B.
    Theme
    Agriculture
    Trade
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise