Do higher food prices help or hinder poverty reduction?

The answer may surprise you, here is part of an abstract from Derek D. Headey:

In this article World Bank poverty estimates are used to systematically test the relationship between changes in poverty and exogenous changes in real domestic food prices. We uncover indicative evidence that increases in food prices are associated with reductions in poverty, not increases. We empirically explain this result in terms of relatively strong agricultural supply and wage responses to food price increases, and the fact that the majority of the world’s poor still heavily rely on agriculture or agriculture-related activities to earn a living.

Here is the full (gated) article, via the excellent Kevin Lewis.