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\hypersetup{pdftitle={Impact of Rising Food Price on Poverty and Welfare in Vietnam},pdfauthor={Phung Duc Tung, Waibel Hermann},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Food crisis, poverty, Vietnam, welfare},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Impact of Rising Food Price on Poverty and Welfare in Vietnam\footnote{\textbf{Contact Address:} Phung Duc Tung, Institute of Policy and Strategy for Agriculture and Rural Development, Center for Agricultural Policy, Hanoi, Viet Nam, \mbox{e-mail}: \email{}}\\[0.8ex]}}
\normalsize{\textsc{Phung Duc Tung$^{1}$, Waibel Hermann$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Institute of Policy and Strategy for Agriculture and Rural Development, Center for Agricultural Policy, Viet Nam}}}
\item[]{\small{\textit{$^{2}$Leibniz Universität Hannover, Institute of Development and Agricultural Economics, School of Economics and Management, }}}
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\index[author]{Tung, Phung Duc}
\index[author]{Hermann, Waibel}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
In 2008, the international prices of food commodities increased to an unprecedented level since the end of the 1970s. From April 2006 to June 2008 the real food price index had more than doubled.  Several factors are assumed to be responsible for this price increase, including increased production of biofuels from food grains and oilseeds due to the soaring petroleum prices, a weak US dollar compared to other major currencies, the increase in food production costs due to higher energy prices, the shortfall of agricultural production due to weather shocks, export bans and speculative activities in food markets.







Most of the current papers have looked at the impact of the food crisis on poverty in net importing countries. This paper analyses the effects of the food price increase in Vietnam a net exporter of rice and other agricultural commodities. 



The study uses two sources of data. First, panel data of the Vietnam Household Living Standard Survey between 2006 and 2008 and the second is panel data from a large"=scale household survey conducted within the framework of the DFG-funded research project ``Impact of shocks on the vulnerability to poverty: consequences for development of emerging Southeast Asian economies'' conducted in 2007 and 2008 in three Vietnamese provinces. 







Results show that the effect of the increase in food prices on the real incomes of households who are net sellers of food products is relatively stronger (more than \mbox{10\,\%}) than the reduction in real income of net buyers (less than \mbox{5\,\%}). On average higher food prices increased the welfare of Vietnamese households; however there is a large variation among different household types and regions. Similar results could be shown for welfare effects of the food price hike. The rising of food price increased the poverty in Vietnam as the share of net buyers exceeds those of net sellers.



}

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\noindent \textbf{Keywords:} Food crisis, poverty, Vietnam, welfare
\index[key]{Food!crisis}
\index[key]{Poverty}
\index[key]{Vietnam}
\index[key]{Welfare}
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