Assessing the poverty and distributional impact of alternative rice policies in the Philippines
College
Ramon V. Del Rosario College of Business
Department/Unit
Economics
Document Type
Article
Source Title
DLSU Business and Economics Review
Volume
28
Issue
2
First Page
169
Last Page
182
Publication Date
1-1-2019
Abstract
Philippine domestic prices of rice are significantly higher than world prices for similar rice quality. The WTO-approved Philippine rice waiver, which allows the government to continue its quantitative restrictions on rice imports, sustains the price gap in rice and prolongs the heavy burden on poor consumers who spend a significant amount of their income on rice. The results of rice policy simulations using a CGE model with poverty microsimulation indicate that a tariffication of the quantitative restrictions on rice imports, which maintains the level of protection to the local paddy farmers and the utilization of the generated revenue as cash transfers to targeted vulnerable groups, generates favorable income distribution and poverty reduction effects. Tighter quantitative restriction on rice imports under the rice self-sufficiency program increases the burden on poor households and generates perverse income redistribution from poor to rich. © 2019 by De La Salle University.
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Recommended Citation
Cororaton, C. B., & Yu, K. S. (2019). Assessing the poverty and distributional impact of alternative rice policies in the Philippines. DLSU Business and Economics Review, 28 (2), 169-182. Retrieved from https://animorepository.dlsu.edu.ph/faculty_research/2887
Disciplines
Economics
Keywords
Rice trade—Prices--Philippines; Philippines--Commercial policy
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