Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis
Policy simulations utilizing an economy-wide model based on PNG national accounts and survey data highlight the importance of linkages between the agricultural and non-agricultural sectors of the PNG economy. There are potentially major benefits of increased agricultural productivity for national in...
| Autores principales: | , |
|---|---|
| Formato: | Brief |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2022
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/140996 |
| _version_ | 1855525666839068672 |
|---|---|
| author | Dorosh, Paul A. Pradesha, Angga |
| author_browse | Dorosh, Paul A. Pradesha, Angga |
| author_facet | Dorosh, Paul A. Pradesha, Angga |
| author_sort | Dorosh, Paul A. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Policy simulations utilizing an economy-wide model based on PNG national accounts and survey data highlight the importance of linkages between the agricultural and non-agricultural sectors of the PNG economy. There are potentially major benefits of increased agricultural productivity for national income and urban households. To reduce rural poverty, however, transport and processing costs must be lowered, as well. Even if only half of the increase in foreign exchange earnings from the 2022 world energy price shock is absorbed into the PNG economy, the real exchange rate appreciates by 13 percent, reducing incomes from export crops. However, increased domestic demand for non-tradable crops contributes to a 10 percent income gain for the rural poor. Using a portion of increased oil and natural gas revenues to finance new investments in crop agriculture, processing and transport, provides even greater benefits by spurring real GDP growth and raising real household incomes by an additional 2 to 4 percentage points. A hypothetical carbon credit arrangement in which PNG reduces deforestation in exchange for funds used to finance cash transfers to the poorest 20 percent of both urban and rural households could raise the incomes of these groups by about 13 percent. |
| format | Brief |
| id | CGSpace140996 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1409962025-12-08T10:11:39Z Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis Dorosh, Paul A. Pradesha, Angga public investment economic growth shock policies investment capacity development agriculture economic sectors poverty Policy simulations utilizing an economy-wide model based on PNG national accounts and survey data highlight the importance of linkages between the agricultural and non-agricultural sectors of the PNG economy. There are potentially major benefits of increased agricultural productivity for national income and urban households. To reduce rural poverty, however, transport and processing costs must be lowered, as well. Even if only half of the increase in foreign exchange earnings from the 2022 world energy price shock is absorbed into the PNG economy, the real exchange rate appreciates by 13 percent, reducing incomes from export crops. However, increased domestic demand for non-tradable crops contributes to a 10 percent income gain for the rural poor. Using a portion of increased oil and natural gas revenues to finance new investments in crop agriculture, processing and transport, provides even greater benefits by spurring real GDP growth and raising real household incomes by an additional 2 to 4 percentage points. A hypothetical carbon credit arrangement in which PNG reduces deforestation in exchange for funds used to finance cash transfers to the poorest 20 percent of both urban and rural households could raise the incomes of these groups by about 13 percent. 2022-08-17 2024-04-12T13:37:02Z 2024-04-12T13:37:02Z Brief https://hdl.handle.net/10568/140996 en https://doi.org/10.2499/p15738coll2.135967 https://doi.org/10.2499/p15738coll2.136311 https://doi.org/10.2499/p15738coll2.134987 https://doi.org/10.1111/agec.12625 https://doi.org/10.2499/p15738coll2.134293 Open Access application/pdf International Food Policy Research Institute Dorosh, Paul A.; and Pradesha, Angga. 2022. Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis. Papua New Guinea Project Note 10. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136347. |
| spellingShingle | public investment economic growth shock policies investment capacity development agriculture economic sectors poverty Dorosh, Paul A. Pradesha, Angga Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title | Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title_full | Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title_fullStr | Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title_full_unstemmed | Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title_short | Synopsis: Implications of public investments and external shocks on agriculture, economic growth and poverty in Papua New Guinea: An economywide analysis |
| title_sort | synopsis implications of public investments and external shocks on agriculture economic growth and poverty in papua new guinea an economywide analysis |
| topic | public investment economic growth shock policies investment capacity development agriculture economic sectors poverty |
| url | https://hdl.handle.net/10568/140996 |
| work_keys_str_mv | AT doroshpaula synopsisimplicationsofpublicinvestmentsandexternalshocksonagricultureeconomicgrowthandpovertyinpapuanewguineaaneconomywideanalysis AT pradeshaangga synopsisimplicationsofpublicinvestmentsandexternalshocksonagricultureeconomicgrowthandpovertyinpapuanewguineaaneconomywideanalysis |