Long-Term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
Did the rise in food prices have a long-term impact on agricultural production? Using household-level panel data from seven provinces of Indonesia, this paper finds that the price shock created a forward-looking incentive to invest, which can dynamically enhance productivity in agriculture. It also finds that the impact of the price shock on investment behavior differs by initial wealth. In response to price increases, wealthy farmers invested more in productive assets, while poor farmers increased their financial savings as well as consumption. Price spikes relax liquidity constraints, which increases investments among the richer while do so savings and consumptions among the poor, possibly leading to diverging income inequality in the long run
Year of publication: |
2017
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Authors: | Nose, Manabu |
Other Persons: | Yamauchi, Futoshi (contributor) |
Publisher: |
[2017]: [S.l.] : SSRN |
Subject: | Ernährungssicherung | Food security | Indonesien | Indonesia | Lebensmittelpreis | Food price | Investitionsentscheidung | Investment decision | Agrareinkommen | Farm income | Einkommenseffekt | Income effect | Landwirte | Farmers |
Saved in:
freely available
Extent: | 1 Online-Ressource (42 p) |
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Series: | World Bank Policy Research Working Paper ; No. 6065 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1, 2012 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012975241