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Agricultural Price and Inequality: Analysis on Southeast Asia

Idrus, Ahmad Nazmi LU (2012) EKHR92 20121
Department of Economic History
Abstract
How does agricultural price fluctuations affect the welfare of commodity producing countries? This paper discusses the impact of the movements in commodity prices, focusing only on agricultural goods, to analyse its impact to income inequality. It is well known in the literature that mineral wealth especially oil has an impact on income distribution through the redistribution of wealth, but the channel of impact from agricultural price fluctuations remains largely unexplored. On this paper, we construct a theoretical model linking the relationship between agricultural prices to inequality through its impact on wages of commodity producers relative to other sectors in the economy. To prove our hypothesis, we run an empirical study using... (More)
How does agricultural price fluctuations affect the welfare of commodity producing countries? This paper discusses the impact of the movements in commodity prices, focusing only on agricultural goods, to analyse its impact to income inequality. It is well known in the literature that mineral wealth especially oil has an impact on income distribution through the redistribution of wealth, but the channel of impact from agricultural price fluctuations remains largely unexplored. On this paper, we construct a theoretical model linking the relationship between agricultural prices to inequality through its impact on wages of commodity producers relative to other sectors in the economy. To prove our hypothesis, we run an empirical study using annual data on income inequality against an index of commodity prices. Using the resource-abundant countries of Southeast Asia as our case study, we found that there is a negative relationship between commodity price fluctuations and the distribution of wealth among the population. (Less)
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author
Idrus, Ahmad Nazmi LU
supervisor
organization
course
EKHR92 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Inequality, commodity price, resources, agriculture, Southeast Asia
language
English
id
2798290
date added to LUP
2012-09-27 08:49:00
date last changed
2012-09-27 08:49:00
@misc{2798290,
  abstract     = {How does agricultural price fluctuations affect the welfare of commodity producing countries? This paper discusses the impact of the movements in commodity prices, focusing only on agricultural goods, to analyse its impact to income inequality. It is well known in the literature that mineral wealth especially oil has an impact on income distribution through the redistribution of wealth, but the channel of impact from agricultural price fluctuations remains largely unexplored. On this paper, we construct a theoretical model linking the relationship between agricultural prices to inequality through its impact on wages of commodity producers relative to other sectors in the economy. To prove our hypothesis, we run an empirical study using annual data on income inequality against an index of commodity prices. Using the resource-abundant countries of Southeast Asia as our case study, we found that there is a negative relationship between commodity price fluctuations and the distribution of wealth among the population.},
  author       = {Idrus, Ahmad Nazmi},
  keyword      = {Inequality,commodity price,resources,agriculture,Southeast Asia},
  language     = {eng},
  note         = {Student Paper},
  title        = {Agricultural Price and Inequality: Analysis on Southeast Asia},
  year         = {2012},
}