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Poverty impact of rising maize prices in Kenya
Örebro University, Swedish Business School at Örebro University.ORCID iD: 0000-0003-4078-7349
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The recent hike in food prices has been of great concern to policymakers, international organisations and donor agencies. In this paper we discuss, both from a partial and general equilibrium perspective, the impact of the recent price increase on maize on Kenyan households. Simulating a 100% increase in maize prices, we find that the headcount ratio in urban areas increased by 3-4 percentage unit points, depending on the size of windfall gain to producers. Based on the assumption that the price shock is passed through in total to the farmers, poverty in the rural areas could be reduced by almost 14%. If incomes are not passed through, rural food poverty would increase quite significantly in some provinces. It is the poorest of the poor in both urban and rural areas who are most adversely affected. Policy reforms, which would reduce marketing margins and fertiliser prices, would be important factors in promoting a positive impact on performance in the maize sector.

National Category
Economics
Research subject
Economics
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URN: urn:nbn:se:oru:diva-26458OAI: oai:DiVA.org:oru-26458DiVA: diva2:570453
Available from: 2012-11-20 Created: 2012-11-19 Last updated: 2017-10-17Bibliographically approved

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Poverty Impact of Rising Maize Prices in Kenya(449 kB)514 downloads
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Levin, Jörgen
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Swedish Business School at Örebro University
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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf