Measuring the Impact of a Change in the Price of Cashew Received by Exporters on Farmgate Prices and Poverty in Guinea-Bissau

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dc.creatorCont, Walter
dc.creatorPorto, Guido
dc.date2014-10-06T20:20:32Z
dc.date2014-10-06T20:20:32Z
dc.date2014-09
dc.date.accessioned2026-07-01T00:47:43Z
dc.descriptionThis paper assesses the impact of a change in the price of cashew received by exporters in general -- and by FUNPI, a fund to promote the industrialization of agricultural products, in particular -- on farmgate prices and poverty in Guinea-Bissau. The analysis builds a theoretical model of supply chains in export agriculture that includes exporters, traders, and farmers competing in a bilateral oligopoly fashion. The model is adapted to data from the country's cashew sector and a household survey. Given the market structure, a shock on export prices or the introduction of an export tax, such as the FUNPI contribution, has a strong effect on farmgate prices, as farmers absorb about 80 percent of the tax (while exporters take up 13 percent and traders absorb the remaining 7 percent). The effect is uneven across households, as poor rural households are more exposed to price volatility and most cashew farmers are poor. It is estimated that their income falls by 12 percent as a result of the FUNPI contribution. Complementary policies can overcome the effect of the FUNPI surcharge on farmgate prices by aiming for reductions in transport, infrastructure, and transaction costs for traders and exporters. Fostering cashew processing would create added value through a displacement of volume from exporters to processors. The analysis finds it implausible that, under reasonable assumtions, a subsidy would overturn the welfare costs of the FUNPI contribution.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2014/09/20211379/measuring-impact-change-price-cashew-received-exporters-farmgate-prices-poverty-guinea-bissau-measuring-impact-change-price-cashew-received-exporters-farmgate-prices-poverty-guinea-bissau
dc.identifierhttps://hdl.handle.net/10986/20369
dc.identifierhttps://doi.org/10.1596/1813-9450-7036
dc.identifier.urihttp://hdl.handle.net/123456789/411109
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relationPolicy Research Working Paper;No. 7036
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURE
dc.subjectAUCTION
dc.subjectAVERAGE COSTS
dc.subjectAVERAGE PRICE
dc.subjectBENEFICIARIES
dc.subjectBID
dc.subjectBIDS
dc.subjectBROKERS
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPACITY CONSTRAINT
dc.subjectCAPACITY CONSTRAINTS
dc.subjectCASH TRANSFERS
dc.subjectCOLLUSION
dc.subjectCOMMODITY
dc.subjectCOMPETITION POLICIES
dc.subjectCOMPETITION POLICY
dc.subjectCOMPETITIVE EQUILIBRIUM
dc.subjectCOMPETITIVE MARKET
dc.subjectCOMPETITIVE PRICES
dc.subjectCOST FUNCTIONS
dc.subjectCOST REDUCTION
dc.subjectCOST REDUCTIONS
dc.subjectCOST STRUCTURE
dc.subjectCOST STRUCTURES
dc.subjectDEMAND FUNCTIONS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISTRIBUTION OF INCOME
dc.subjectDOMESTIC PRICES
dc.subjectELASTICITY OF SUPPLY
dc.subjectEQUILIBRIUM PRICE
dc.subjectEQUILIBRIUM PRICES
dc.subjectEQUILIBRIUM VALUES
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXPOSURE
dc.subjectEXTREME POVERTY
dc.subjectFUNCTIONAL FORMS
dc.subjectGDP
dc.subjectGOVERNANCE MECHANISMS
dc.subjectGOVERNMENT ACTION
dc.subjectGOVERNMENT REVENUES
dc.subjectHOMOGENEOUS GOODS
dc.subjectHOUSEHOLD INCOME
dc.subjectIMPERFECT COMPETITION
dc.subjectINCOME
dc.subjectINDIVIDUAL FIRMS
dc.subjectINDUSTRIALIZATION
dc.subjectINPUT PRICES
dc.subjectINSTRUMENT
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL MARKET
dc.subjectMACROECONOMICS
dc.subjectMARGINAL COST
dc.subjectMARGINAL COSTS
dc.subjectMARKET CONCENTRATION
dc.subjectMARKET DATA
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PLAYERS
dc.subjectMARKET SHARE
dc.subjectMARKET SHARES
dc.subjectMARKET SIZE
dc.subjectMARKET STRUCTURE
dc.subjectMONOPOLIES
dc.subjectMONOPOLY
dc.subjectNASH EQUILIBRIUM
dc.subjectOFFER QUANTITIES
dc.subjectOLIGOPOLY
dc.subjectOPTIMIZATION
dc.subjectOUTPUT
dc.subjectPRICE CHANGE
dc.subjectPRICE CHANGES
dc.subjectPRICE DECREASES
dc.subjectPRICE ELASTICITY
dc.subjectPRICE ELASTICITY OF SUPPLY
dc.subjectPRICE FLUCTUATIONS
dc.subjectPRICE INCREASE
dc.subjectPRICE INCREASES
dc.subjectPRICE MARGIN
dc.subjectPRICE POLICY
dc.subjectPRICE STRUCTURE
dc.subjectPRICE VOLATILITY
dc.subjectPRODUCER PRICE
dc.subjectPRODUCER PRICES
dc.subjectPROFIT FUNCTIONS
dc.subjectPROFIT MAXIMIZATION
dc.subjectPUBLIC FUNDS
dc.subjectREAL INCOME
dc.subjectRETURN
dc.subjectSALES
dc.subjectSINGLE MARKET
dc.subjectSTOCKS
dc.subjectSUBSTITUTE
dc.subjectSUBSTITUTION
dc.subjectSUPPLY CHAIN
dc.subjectSUPPLY CHAINS
dc.subjectSUPPLY ELASTICITY
dc.subjectSUPPLY FUNCTION
dc.subjectSURPLUS
dc.subjectTAX
dc.subjectTAX RATES
dc.subjectTAX REVENUES
dc.subjectTOTAL REVENUE
dc.subjectTRADE TAX
dc.subjectTRADE TAXES
dc.subjectTRADES
dc.subjectTRADING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectUTILITY FUNCTION
dc.titleMeasuring the Impact of a Change in the Price of Cashew Received by Exporters on Farmgate Prices and Poverty in Guinea-Bissau

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