Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire

Kone Siaka; Noufou Coulibaly; Djina Djolo Jean Marc Junior

doi:doi:10.11648/j.ijae.20190405.15

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Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire

Kone Siaka, Noufou Coulibaly, Djina Djolo Jean Marc Junior

Published in International Journal of Agricultural Economics (Volume 4, Issue 5)

Received: 28 July 2019 Accepted: 30 August 2019 Published: 17 September 2019

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Abstract

This paper measures, at the farm level, the short and long-term impacts of the fall in world cotton prices on agricultural incomes and the rural poverty level of cotton producers in Côte d'Ivoire. World cotton prices fell by 40% over the period from 2010 to 2018, this was felt by cotton producers. The objective of the paper is to show the relative importance of cotton for cotton producers and to draw the attention of public decision-makers to put in place public policies in the agricultural sector to support the development of the cotton sector. This paper combines farm survey data from Côte d’Ivoire with assumptions about the decline in farm-level prices to estimate the direct and indirect effects of cotton price reductions on rural income and poverty of Lialibé and Kossou Producers in Cote d’Ivoire. We used the monetary approach and the Foster-Greer-Thorbecke method to measure poverty. The results indicate that there is a strong link between cotton prices and rural welfare of Lialibé and Kossou Producers in Cote d’Ivoire. A 36.11% reduction in farm-level prices of cotton results in an increase in rural poverty of 30.43% points in the short run and 26-30% points in the long run according to elasticities. A 36.11% reduction in farm-level prices of cotton results in an increase in producer’s income of 69% points in the short run and 50-69% points in the long run according to elasticities. Overall, the study demonstrates the impact of changes in world cotton prices on rural poverty in Côte d’Ivoire, thus highlighting the likely negative effects of cotton subsidies on Côte d’Ivoire farmers.

Published in	International Journal of Agricultural Economics (Volume 4, Issue 5)
DOI	10.11648/j.ijae.20190405.15
Page(s)	225-232
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Cotton, Price Impact, Poverty Index

References

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[9]	Gillson, I., et al., Understanding the impact of Cotton Subsidies on developing countries. 2004 World Bank: Washington DC. p. 74.
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[15]	Grimm, M., C. Guenard, and S. Mesple-Somps, Evolution de la pauvreté urbaine en Côte d'Ivoire; Une analyse sur 15 ans d'enquêtes ménages. 2001, DIAL – UR CIPRE de l’IRD. p. 41.
[16]	PNUD, Mesure de la pauvreté selon la méthode de degré de satisfaction des besoins essentiels; expérience du Niger. 2007, PNUD: Niger. p. 214.
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[18]	Orden, D., et al., The Impact of Global Cotton Markets on Rural Poverty in Pakistan, in American Agricultural Economics Association Annual Meeting. 2006: California. p. 25.
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Kone Siaka, Noufou Coulibaly, Djina Djolo Jean Marc Junior. (2019). Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. International Journal of Agricultural Economics, 4(5), 225-232. https://doi.org/10.11648/j.ijae.20190405.15

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ACS Style

Kone Siaka; Noufou Coulibaly; Djina Djolo Jean Marc Junior. Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. Int. J. Agric. Econ. 2019, 4(5), 225-232. doi: 10.11648/j.ijae.20190405.15

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AMA Style

Kone Siaka, Noufou Coulibaly, Djina Djolo Jean Marc Junior. Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. Int J Agric Econ. 2019;4(5):225-232. doi: 10.11648/j.ijae.20190405.15

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@article{10.11648/j.ijae.20190405.15,
  author = {Kone Siaka and Noufou Coulibaly and Djina Djolo Jean Marc Junior},
  title = {Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire},
  journal = {International Journal of Agricultural Economics},
  volume = {4},
  number = {5},
  pages = {225-232},
  doi = {10.11648/j.ijae.20190405.15},
  url = {https://doi.org/10.11648/j.ijae.20190405.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20190405.15},
  abstract = {This paper measures, at the farm level, the short and long-term impacts of the fall in world cotton prices on agricultural incomes and the rural poverty level of cotton producers in Côte d'Ivoire. World cotton prices fell by 40% over the period from 2010 to 2018, this was felt by cotton producers. The objective of the paper is to show the relative importance of cotton for cotton producers and to draw the attention of public decision-makers to put in place public policies in the agricultural sector to support the development of the cotton sector. This paper combines farm survey data from Côte d’Ivoire with assumptions about the decline in farm-level prices to estimate the direct and indirect effects of cotton price reductions on rural income and poverty of Lialibé and Kossou Producers in Cote d’Ivoire. We used the monetary approach and the Foster-Greer-Thorbecke method to measure poverty. The results indicate that there is a strong link between cotton prices and rural welfare of Lialibé and Kossou Producers in Cote d’Ivoire. A 36.11% reduction in farm-level prices of cotton results in an increase in rural poverty of 30.43% points in the short run and 26-30% points in the long run according to elasticities. A 36.11% reduction in farm-level prices of cotton results in an increase in producer’s income of 69% points in the short run and 50-69% points in the long run according to elasticities. Overall, the study demonstrates the impact of changes in world cotton prices on rural poverty in Côte d’Ivoire, thus highlighting the likely negative effects of cotton subsidies on Côte d’Ivoire farmers.},
 year = {2019}
}

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TY  - JOUR
T1  - Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire
AU  - Kone Siaka
AU  - Noufou Coulibaly
AU  - Djina Djolo Jean Marc Junior
Y1  - 2019/09/17
PY  - 2019
N1  - https://doi.org/10.11648/j.ijae.20190405.15
DO  - 10.11648/j.ijae.20190405.15
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 225
EP  - 232
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20190405.15
AB  - This paper measures, at the farm level, the short and long-term impacts of the fall in world cotton prices on agricultural incomes and the rural poverty level of cotton producers in Côte d'Ivoire. World cotton prices fell by 40% over the period from 2010 to 2018, this was felt by cotton producers. The objective of the paper is to show the relative importance of cotton for cotton producers and to draw the attention of public decision-makers to put in place public policies in the agricultural sector to support the development of the cotton sector. This paper combines farm survey data from Côte d’Ivoire with assumptions about the decline in farm-level prices to estimate the direct and indirect effects of cotton price reductions on rural income and poverty of Lialibé and Kossou Producers in Cote d’Ivoire. We used the monetary approach and the Foster-Greer-Thorbecke method to measure poverty. The results indicate that there is a strong link between cotton prices and rural welfare of Lialibé and Kossou Producers in Cote d’Ivoire. A 36.11% reduction in farm-level prices of cotton results in an increase in rural poverty of 30.43% points in the short run and 26-30% points in the long run according to elasticities. A 36.11% reduction in farm-level prices of cotton results in an increase in producer’s income of 69% points in the short run and 50-69% points in the long run according to elasticities. Overall, the study demonstrates the impact of changes in world cotton prices on rural poverty in Côte d’Ivoire, thus highlighting the likely negative effects of cotton subsidies on Côte d’Ivoire farmers.
VL  - 4
IS  - 5
ER  -

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Author Information

Kone Siaka

Management and Applied Economics Department, National Polytechnic Institute Houphouet Boigny, Yamoussoukro, Cote d'Ivoire
Noufou Coulibaly

Management and Applied Economics Department, National Polytechnic Institute Houphouet Boigny, Yamoussoukro, Cote d'Ivoire
Djina Djolo Jean Marc Junior

Management and Applied Economics Department, National Polytechnic Institute Houphouet Boigny, Yamoussoukro, Cote d'Ivoire

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Kone Siaka, Noufou Coulibaly, Djina Djolo Jean Marc Junior. (2019). Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. International Journal of Agricultural Economics, 4(5), 225-232. https://doi.org/10.11648/j.ijae.20190405.15

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ACS Style

Kone Siaka; Noufou Coulibaly; Djina Djolo Jean Marc Junior. Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. Int. J. Agric. Econ. 2019, 4(5), 225-232. doi: 10.11648/j.ijae.20190405.15

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AMA Style

Kone Siaka, Noufou Coulibaly, Djina Djolo Jean Marc Junior. Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire. Int J Agric Econ. 2019;4(5):225-232. doi: 10.11648/j.ijae.20190405.15

Copy | Download

@article{10.11648/j.ijae.20190405.15,
  author = {Kone Siaka and Noufou Coulibaly and Djina Djolo Jean Marc Junior},
  title = {Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire},
  journal = {International Journal of Agricultural Economics},
  volume = {4},
  number = {5},
  pages = {225-232},
  doi = {10.11648/j.ijae.20190405.15},
  url = {https://doi.org/10.11648/j.ijae.20190405.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20190405.15},
  abstract = {This paper measures, at the farm level, the short and long-term impacts of the fall in world cotton prices on agricultural incomes and the rural poverty level of cotton producers in Côte d'Ivoire. World cotton prices fell by 40% over the period from 2010 to 2018, this was felt by cotton producers. The objective of the paper is to show the relative importance of cotton for cotton producers and to draw the attention of public decision-makers to put in place public policies in the agricultural sector to support the development of the cotton sector. This paper combines farm survey data from Côte d’Ivoire with assumptions about the decline in farm-level prices to estimate the direct and indirect effects of cotton price reductions on rural income and poverty of Lialibé and Kossou Producers in Cote d’Ivoire. We used the monetary approach and the Foster-Greer-Thorbecke method to measure poverty. The results indicate that there is a strong link between cotton prices and rural welfare of Lialibé and Kossou Producers in Cote d’Ivoire. A 36.11% reduction in farm-level prices of cotton results in an increase in rural poverty of 30.43% points in the short run and 26-30% points in the long run according to elasticities. A 36.11% reduction in farm-level prices of cotton results in an increase in producer’s income of 69% points in the short run and 50-69% points in the long run according to elasticities. Overall, the study demonstrates the impact of changes in world cotton prices on rural poverty in Côte d’Ivoire, thus highlighting the likely negative effects of cotton subsidies on Côte d’Ivoire farmers.},
 year = {2019}
}

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TY  - JOUR
T1  - Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire
AU  - Kone Siaka
AU  - Noufou Coulibaly
AU  - Djina Djolo Jean Marc Junior
Y1  - 2019/09/17
PY  - 2019
N1  - https://doi.org/10.11648/j.ijae.20190405.15
DO  - 10.11648/j.ijae.20190405.15
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 225
EP  - 232
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20190405.15
AB  - This paper measures, at the farm level, the short and long-term impacts of the fall in world cotton prices on agricultural incomes and the rural poverty level of cotton producers in Côte d'Ivoire. World cotton prices fell by 40% over the period from 2010 to 2018, this was felt by cotton producers. The objective of the paper is to show the relative importance of cotton for cotton producers and to draw the attention of public decision-makers to put in place public policies in the agricultural sector to support the development of the cotton sector. This paper combines farm survey data from Côte d’Ivoire with assumptions about the decline in farm-level prices to estimate the direct and indirect effects of cotton price reductions on rural income and poverty of Lialibé and Kossou Producers in Cote d’Ivoire. We used the monetary approach and the Foster-Greer-Thorbecke method to measure poverty. The results indicate that there is a strong link between cotton prices and rural welfare of Lialibé and Kossou Producers in Cote d’Ivoire. A 36.11% reduction in farm-level prices of cotton results in an increase in rural poverty of 30.43% points in the short run and 26-30% points in the long run according to elasticities. A 36.11% reduction in farm-level prices of cotton results in an increase in producer’s income of 69% points in the short run and 50-69% points in the long run according to elasticities. Overall, the study demonstrates the impact of changes in world cotton prices on rural poverty in Côte d’Ivoire, thus highlighting the likely negative effects of cotton subsidies on Côte d’Ivoire farmers.
VL  - 4
IS  - 5
ER  -

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