What is it about?
This study using a general equilibrium model attempts to investigate the impacts of changes in global food prices on the economy and poverty level in Malaysia. While high agricultural price stimulates the investment and export of agricultural sectors and aggregate household consumption, lower agricultural commodity prices declines investment and export in these sectors and causes a decrease in aggregate household consumption. Although both high- and low-price scenarios increase the poverty level of all household groups, with greater magnitude for lower-price scenario, all rural household groups compared to urban groups experience more increase in their poverty.
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Why is it important?
As this study compares higher and lower global agricultural commodity prices, it provides a substantial viewpoint for policymakers to plan the future impacts of such socks on Malaysia's economy and food security. It is also can be used by other readers to find what will be the impact of an external shock on the agriculture sector.
Perspectives
Using a dynamic CGE model and predict future impacts of such sock can be used in perspective studies.
Dr Saeed Solaymani
saeedsolaymani@gmail.com
Read the Original
This page is a summary of: Agriculture and Poverty Responses to High Agricultural Commodity Prices, Agricultural Research, March 2017, Springer Science + Business Media,
DOI: 10.1007/s40003-017-0253-y.
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