Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia

Nose, Manabu; Yamauchi, Futoshi

Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia

2012

Nose, Manabu | Yamauchi, Futoshi

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.

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Mots clés AGROVOC

agricultural development agricultural economics agricultural inputs agricultural land agricultural production agricultural productivity agricultural products agricultural sector agriculture beverages cacao cash flow cassava commodities crop production developing countries eggs expenditure farm size farmer farmers food consumption food prices fruits ga human capital income insurance international cooperation irrigation land productivity liquid assets liquidity maize marketing meat milk natural disasters nutrition paddy producer prices purchasing rubber rural areas savings small farmers transaction costs vegetable crops vegetables volatility

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Editeur

World Bank, Washington, DC

D'autres materias

Domestic market; Regional dispersion; Schooling; Income inequality; Asset holdings; Wholesale price; Food expenditures; Substitution effect; Political economy; Village level; Capital stock; Risk premium; Price level; Future prices; Agricultural activity; Price levels; Food crop; Food commodities; Exposure; Effect of liquidity; Developing country; International food policy research institute; Land asset; Poor households; Agricultural technologies; Changes in poverty; Flour; Disposable income; Civil war; Market structures; Farm efficiency; Financial assets; Price uncertainty; Financial support; Commodity prices; Household welfare; Public policy; Price effect; Long-term investment; Landholding size; Volatilities; Price increase; Portfolios; Cocoa; Commodity; Commodity price; Future price; Income shocks; Economic shocks; Binding constraint; Consumer price index; Regional dummies; Poor farmers; Expenditures; Income shock; Regional variation; Infrastructure projects; Agency costs; Outputs; Investment decision; Investment decisions; Household head; Consumer price; Food policy; Remote areas; Factors of production; Market integration; Income gains; Price change; Food price inflation; Food price; Household size; Food policy research; Potato; Financial markets; Collateral; Interest rate; Farming activities; Exposures; Capital investment; Price increases; Low-income countries; Price changes; Substitution; Price inflation; Connectivity; Capital intensity; Credit constraints; Food expenditure; Output; Land size

Langue

anglais

Format

application/pdf, text/plain

Licence

CC BY 3.0 IGO, http://creativecommons.org/licenses/by/3.0/igo/, World Bank

Sur AGRIS depuis: 2024-10-18

Date de modification: 2025-10-25

Format: Dublin Core

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Cette notice bibliographique a été fournie par World Bank

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Liens

DOI http://documents.worldbank.org/curated/en/2012/05/16259979/long-term-impacts-global-food-crisis-production-decisions-evidence-farm-investments-indonesia https://hdl.handle.net/10986/9356

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Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia

2012

Mots clés AGROVOC

Informations bibliographiques