Munich Personal RePEc Archive

International prices changes of agricultural commodities and their impacts on income distribution and poverty in Brazil

Guilhoto, Joaquim José Martins and Azzoni, Carlos Roberto and Silveira, Fernando and Menezes, Tatiane and Hasegawa, Marcos and Haddad, Eduardo A. (2006): International prices changes of agricultural commodities and their impacts on income distribution and poverty in Brazil. Published in: Intermediate Input-Outout Meetings on Sustainability, Trade & Productivity (2006)

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Abstract

The objective of the paper is to provide an estimative of the impacts that changes in international prices of agricultural commodities will have on income distribution and poverty in Brazil. To do so, a Social Accounting Matrix is constructed and applied, using a Leontief- Miyazawa type model framework. The SAM is defined for 40 products, being 17 raw agricultural products, 15 agricultural processed products, 3 industrial agricultural inputs, 2 other industrial products, trade, transport, and services. Households are allocated to 10 groups, being 6 agricultural (4 types of family farmers, commercial farmers, and agricultural labor), and 4 urban (income quartiles). Demand elasticities (price and income) for the products defined in the SAM are considered, as well as limitations on the supply of agricultural inputs. The knowledge of the possible impacts of changes in international commodity prices on income distribution and poverty is very important for policy design within developing countries. Given the estimated impacts on different groups of producers, different sorts of cushioning policies can be designed.

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