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The Competitiveness of Global Coffee Trade

Author

Listed:
  • Aron Torok

    (Corvinus University of Budapest, Department of Agricultural Economics and Rural Development, Hungary,)

  • Tamas Mizik

    (Corvinus University of Budapest, Department of Agricultural Economics and Rural Development, Hungary,)

  • Attila Jambor

    (Corvinus University of Budapest, Department of Agricultural Economics and Rural Development, Hungary.)

Abstract

Coffee is an important agricultural raw material and part of international trade. Although global production is extremely concentrated, it is mainly sold to developed markets. The aim of the paper is to analyse the comparative advantages of the biggest producers. Results suggest that coffee trade has increased recently with important changes in the key players. Brazil, Vietnam and Colombia are currently the biggest exporters, giving the majority of global trade. However, Balassa indices were the highest for Uganda, Ethiopia and Honduras, suggesting unreasonable specialisation patterns. Furthermore, stability and duration tests show significantly changing trends, implying fierce competition in these markets.

Suggested Citation

  • Aron Torok & Tamas Mizik & Attila Jambor, 2018. "The Competitiveness of Global Coffee Trade," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 1-6.
    • Handle: RePEc:eco:journ1:2018-05-1
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    References listed on IDEAS

    as
    1. Štefan Bojnec & Imre Fertő, 2008. "European Enlargement and Agro‐Food Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 563-579, December.
    2. David Boansi & Christian Crentsil, 2013. "Competitiveness and Determinants of Coffee Exports Producer Price and Production for Ethiopia," Journal of Advanced Research in Economics and International Business, ASERS Publishing, vol. 1(1), pages 31-45.
    3. David BOANSI & Christian CRENTSIL, 2013. "Competitiveness and Determinants of Coffee Exports, Producer Price and Production for Ethiopia," Journal of Advanced Research in Economics and International Business, ASERS Publishing, vol. 1(1), pages 31-56, August.
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    More about this item

    Keywords

    coffee trade; revealed comparative advantages; competitiveness;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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