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Library Long-term Impacts of Global Food Crisis on Production Decisions

Long-term Impacts of Global Food Crisis on Production Decisions

Long-term Impacts of Global Food Crisis on Production Decisions

Resource information

Date of publication
July 2016
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/24609

This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.

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Authors and Publishers

Author(s), editor(s), contributor(s)

Nose, Manabu
Yamauchi, Futoshi

Publisher(s)
Data Provider
Geographical focus