Who are the producers and consumers? Value chains and food policy effects in the wheat sector in Pakistan |
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| Institution: | 1. Institute for Advanced Research, Shanghai University of Finance and Economics, Shanghai 200433, China;2. Key Laboratory of Mathematical Economics, Shanghai University of Finance and Economics, Ministry of Education, Shanghai 200433, China;3. Department of Economics, Business School, East China Normal University, 500 Dongchuan Road, Shanghai 200241, China;4. Energy Research School, Xiamen University, Xiamen 361005, China;1. Department of Natural Resources, 111 Fernow Hall, Cornell University, Ithaca, NY 14853, USA;2. Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University, 79 JFK Street, Cambridge, MA 02138, USA;3. Charles H. Dyson School of Applied Economics and Management, 407 Warren Hall, Cornell University, Ithaca, NY 14853, USA |
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| Abstract: | We develop a disaggregated Nominal Rate of Assistance (NRA) methodology to disentangle the welfare impacts of policies for various interest groups along the value chain (to disaggregate effects within the “producer” and “consumer” umbrellas). We apply our value chain NRA methodology to the case of Pakistan’s wheat price and trade policy. We analyze the welfare implications for various agents in the wheat-flour value chain from 2000 to 2013, a period characterized by major global price volatility and by regular adjustments of domestic policies. We find that the wheat policy has generally benefitted flour consumers and wheat traders at the expense of wheat farmers, with limited effects on flour millers. Our findings illustrate that the welfare implications of policies can be quite different within the “producer” and “consumer” umbrellas, which has potentially important implications for economic and political economy analyses and for the design of policies that aim to target the poorest groups along value chains. |
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| Keywords: | Value chains Policy analysis Welfare effects NRA Food prices Pakistan |
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