Higher fuel and food prices: Economic impacts and responses for Mozambique

Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price increases 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 an...

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Main Authors: Arndt, Channing, Benfica, Rui, Maximiano, Nelson, Nucifora, Antonio M.D., Thurlow, James
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2008
Subjects:
Online Access:https://hdl.handle.net/10568/161638
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author Arndt, Channing
Benfica, Rui
Maximiano, Nelson
Nucifora, Antonio M.D.
Thurlow, James
author_browse Arndt, Channing
Benfica, Rui
Maximiano, Nelson
Nucifora, Antonio M.D.
Thurlow, James
author_facet Arndt, Channing
Benfica, Rui
Maximiano, Nelson
Nucifora, Antonio M.D.
Thurlow, James
author_sort Arndt, Channing
collection Repository of Agricultural Research Outputs (CGSpace)
description Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price increases 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 of the country are more vulnerable to food price increases. Rural households, particularly in the northern and central parts of Mozambique, often benefit because they sell more food goods than they consume (i.e., net seller). Long-term analysis using a computable general equilibrium model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Here again, negative impacts are greater in urban areas than in rural areas. The importance of agricultural production response in general, and export response in particular, are highlighted in this discussion. 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.
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spelling CGSpace1616382025-11-06T05:55:18Z Higher fuel and food prices: Economic impacts and responses for Mozambique Arndt, Channing Benfica, Rui Maximiano, Nelson Nucifora, Antonio M.D. Thurlow, James prices shock food security food prices development policies bioenergy computable general equilibrium models Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price increases 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 of the country are more vulnerable to food price increases. Rural households, particularly in the northern and central parts of Mozambique, often benefit because they sell more food goods than they consume (i.e., net seller). Long-term analysis using a computable general equilibrium model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Here again, negative impacts are greater in urban areas than in rural areas. The importance of agricultural production response in general, and export response in particular, are highlighted in this discussion. 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 2024-11-21T09:56:56Z 2024-11-21T09:56:56Z Working Paper https://hdl.handle.net/10568/161638 en Open Access application/pdf International Food Policy Research Institute Arndt, Channing; Benfica, Rui; Maximiano, Nelson; Nucifora, Antonio M.D.; Thurlow, James. 2008. Higher fuel and food prices. IFPRI Discussion Paper 836. https://hdl.handle.net/10568/161638
spellingShingle prices
shock
food security
food prices
development policies
bioenergy
computable general equilibrium models
Arndt, Channing
Benfica, Rui
Maximiano, Nelson
Nucifora, Antonio M.D.
Thurlow, James
Higher fuel and food prices: Economic impacts and responses for Mozambique
title Higher fuel and food prices: Economic impacts and responses for Mozambique
title_full Higher fuel and food prices: Economic impacts and responses for Mozambique
title_fullStr Higher fuel and food prices: Economic impacts and responses for Mozambique
title_full_unstemmed Higher fuel and food prices: Economic impacts and responses for Mozambique
title_short Higher fuel and food prices: Economic impacts and responses for Mozambique
title_sort higher fuel and food prices economic impacts and responses for mozambique
topic prices
shock
food security
food prices
development policies
bioenergy
computable general equilibrium models
url https://hdl.handle.net/10568/161638
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