The Pass-Through of International Commodity Price Shocks to Producers’ Welfare
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Published by Oxford University Press on behalf of the World Bank
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International commodity price shocks
may have large impacts on producers in developing countries.
In this paper, a unique household panel data from Ethiopia
is utilized to show that a decrease in international coffee
price has strong pass-through to the consumption of
households that rely on coffee production as a main source
of livelihood. It also results in decreases in on-farm labor
supply (particularly male labor supply) and induces
reallocation of labor towards non-coffee fields but has
negligible effect on off-farm labor supply. The decline in
consumption has significant consequences on child
malnutrition: children born in coffee-producing households
during low coffee price periods have lower weight-for-age
and weight-for-height z-scores than their peers born in
non-coffee households.
Palabras clave
CHILD HEALTH, COMMODITY PRICE SHOCKS, CONSUMPTION SMOOTHING, ETHIOPIA, INCOME SHOCKS