Volume 4, Issue 5, September 2019, Page: 225-232
Evaluation of Short and Long Run Impacts of Cotton Price on Rural Poverty of Lialibé and Kossou Producers in Cote d’Ivoire
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
Received: Jul. 28, 2019;       Accepted: Aug. 30, 2019;       Published: Sep. 17, 2019
DOI: 10.11648/j.ijae.20190405.15      View  103      Downloads  30
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.
Keywords
Cotton, Price Impact, Poverty Index
To cite this article
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, International Journal of Agricultural Economics. Vol. 4, No. 5, 2019, pp. 225-232. doi: 10.11648/j.ijae.20190405.15
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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