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Global Nutrition Impacts of Rapid Economic Growth in China and India

Author

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  • Hertel, Thomas W.
  • Verma, Monika
  • Bouet, Antoine
  • Cranfield, John A.
  • Preckel, Paul V.
Abstract
Despite record global economic growth in past decade malnutrition remains a serious problem in many parts of the world. According to the United Nations' Food and Agriculture Organization (FAO), about 800 million people (17% of the world's population) remain malnourished. For these households at a subsistence level of income, changes in commodity market conditions, as may arise from changes in global economic growth and/or trade policy can have serious consequences for nutritional intake. Even a small decline in diet quality can have substantial adverse impacts on health status. On the other hand, a modest income boost, or lower food prices, could have extremely positive impacts. Previously, the links between changes in the global economy and nutritional outcomes have been explored by a relatively wide range of authors (e.g., Fang et al., 2006; Rosegrant et al., 2005). The goal of this paper is to offer modest extensions of this previous work in three directions. First of all, unlike many of the papers in the nutrition area, we seek to account for the behavioral response of low income households in the face of changing prices and incomes. Clearly when households are faced with a rise in the price of food products, they cannot afford to consume as much, ceteris paribus so consumption much adjust. The extent of this adjustment will depend on the change in real income and the Engel elasticities for each good. In addition, consumers are likely to substitute away from higher cost food items. All of these factors could have an adverse impact on nutritional attainment. By estimating and incorporating a demand system into our analysis, we are able to take these factors into account. In so doing, we draw on the work of Rimmer and Powell (1996) and Cranfield et al. (2003a; 2003b) in order to characterize consumer demands across the income spectrum. A second important extension embodied in this work relates to the impact of changes in factor earnings on household nutritional a
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Suggested Citation

  • Hertel, Thomas W. & Verma, Monika & Bouet, Antoine & Cranfield, John A. & Preckel, Paul V., 2007. "Global Nutrition Impacts of Rapid Economic Growth in China and India," Conference papers 331583, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331583
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    File URL: https://ageconsearch.umn.edu/record/331583/files/3331.pdf
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    References listed on IDEAS

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    1. repec:fpr:2020br:14(10 is not listed on IDEAS
    2. Kammen, Daniel M., 2006. "Bioenergy in developing countries experiences and prospects: bioenergy and agriculture promises and challenges," 2020 vision briefs 14(10), International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Lionel Fontagné & David Laborde & Cristina Mitaritonna, 2008. "An Impact Study of the EU-ACP Economic Partnership Agreements (EPAs) in the Six ACP Regions," Working Papers 2008-04, CEPII research center.
    2. Martine Rutten & Andrzej Tabeau & Frans Godeschalk, 2013. "A new methodology for incorporating nutrition indicators in economy-wide scenario analyses," FOODSECURE Technical papers 1, LEI Wageningen UR.

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