GTAP Resources: Resource Display
| GTAP Resource #2967 |
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"Do Subsidies Matter in Response to Soaring Food Prices? Evidences from Ethiopia" by Woldie, Getachew Abebe and Khalid Siddig Abstract In the poorest countries like Ethiopia the spillover effects of a soaring food price is unbearable. To mitigate the recent rise in food prices and the burden on urban poor consumers, different measures have been considered by policy makers. A recent shift from subsidizing oil to grain to ease the spiraling cost of food is one attempt the Ethiopian government has made so far. To this end the government has removed an $800m annual subsidy on petroleum products and uses the money to combat rising grain prices. Using the standard GTAP model and the recent GTAP Africa database this paper simulates the overall implication of 5 and 10 percent increase of subsidy on wheat. Regarding the impact on prices, the simulation result tells us that prices have indeed fall. At macro level, the result reveals subsidy on wheat leads to a decline in the overall trade balance. In terms of welfare, the intervention has been found to have positive impact. |
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- Domestic policy analysis - Economic analysis of poverty - The GTAP Data Base and extensions - Africa (East) |
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Public Access  GTAP Resource 4218 (231.1 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
