Higher fuel and food prices: Economic impacts and responses for Mozambique

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dc.creatorArndt, Channing
dc.creatorBenfica, Rui
dc.creatorMaximiano, Nelson
dc.creatorNucifora, Antonio M.D.
dc.creatorThurlow, James
dc.date2008
dc.date2024-11-21T09:56:56Z
dc.date2024-11-21T09:56:56Z
dc.date.accessioned2026-06-27T15:10:53Z
dc.descriptionRising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price increases are analyzed using various approaches. Detailed price data show that the world price increases are being transmitted to domestic prices. Short-run net benefit ratio analysis indicates that urban households and households in the southern region of the country are more vulnerable to food price increases. Rural households, particularly in the northern and central parts of Mozambique, often benefit because they sell more food goods than they consume (i.e., net seller). Long-term analysis using a computable general equilibrium model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Here again, negative impacts are greater in urban areas than in rural areas. The importance of agricultural production response in general, and export response in particular, are highlighted in this discussion. Policy analysis reveals difficult trade-offs between short-run mitigation and long-run growth. Improved agricultural productivity has powerful positive impacts, but remains difficult to achieve and may not address the immediate impacts of higher prices.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/161638
dc.identifier.urihttp://hdl.handle.net/123456789/96924
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceArndt, Channing; Benfica, Rui; Maximiano, Nelson; Nucifora, Antonio M.D.; Thurlow, James. 2008. Higher fuel and food prices. IFPRI Discussion Paper 836. https://hdl.handle.net/10568/161638
dc.subjectprices
dc.subjectshock
dc.subjectfood security
dc.subjectfood prices
dc.subjectdevelopment policies
dc.subjectbioenergy
dc.subjectcomputable general equilibrium models
dc.titleHigher fuel and food prices: Economic impacts and responses for Mozambique
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)