Research Report

Consequences of a food security strategy for economic welfare, income distribution and land degradation: the Philippine case

Abstract:

At the level of the aggregate economy, the price support reduces real GDP (-0.4%) and average real household consumption expenditures (-1.5%) (Figure 5). It has a progressive impact on distribution (Figure 6). However, all real household incomes decline: the policy enables poor households to gain a larger slice of a smaller overall pie. Finally, by raising returns to grains, the price support draws more land into production of these relatively erosive crops, promoting a more rapid rate of agricultural land degradation (Figure 7). The environmental impact of the price support is most strongly seen in Mindanao, the Philippines' major corn-growing region.

Info
Source InstitutionWorld Bank
Source URLhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/05/07/000265513_20040507163129/additional/820140748_200404131105145.pdf
Page Count35
Place of PublicationUniversity of Wisconsin-Madison
Original Publication Date
Tags Degradation, Distribution, Economic, Food, Land, Research, Strategy