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Rice Reforms and Poverty in the Philippines: A CGE Analysis

dc.contributor.authorCaesar B. Cororaton
dc.description.abstractThe 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.
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.titleRice Reforms and Poverty in the Philippines: A CGE Analysis
dc.typeWorking Papers
dc.subject.expertCommercial agriculture
dc.subject.expertSustainable agriculture
dc.subject.expertTrade Volume
dc.subject.expertAgricultural Trade
dc.subject.expertFood Security And Trade
dc.subject.expertRegional Trade Agreements
dc.subject.adbAgricultural trade
dc.subject.adbCommercial farming
dc.subject.adbSustainable development
dc.subject.adbExport volume
dc.subject.adbExport Development
dc.subject.adbAccess to markets
dc.subject.adbAgricultural market
dc.subject.adbAgricultural economy
dc.subject.naturalAgricultural diversification
dc.subject.naturalAgricultural resource
dc.subject.naturalFarm produce
dc.subject.naturalLand capability for agriculture
dc.subject.naturalFood Supply
dc.subject.naturalRural land use
dc.subject.naturalTechnological innovations
dc.subject.naturalAgricultural innovations
dc.subject.naturalFarm supply industry
dc.subject.naturalNatural resource
dc.subject.naturalAdaptive natural resource management
dc.subject.naturalProduce trade
dc.subject.naturalPrice Indexes
dc.subject.naturalIntergrated rural development
dc.subject.naturalCost and standard of living
dc.subject.naturalCrop improvement
dc.subject.naturalRice farming
dc.subject.naturalFood industry
dc.subject.naturalPerishable goods
dc.title.seriesADBI Working Paper Series
dc.contributor.imprintAsian Development Bank
oar.adminregionSoutheast Asia Region
oar.authorCororaton, Caesar B.

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  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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