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Anatomy of a Temporary Trade Shock: The Kenyan Coffee Boom of 1976-9

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  • Bevan, David
  • Collier, Paul
  • Gunning, Jan Willem

Abstract

The coffee boom of 1976-9 was an archetypal temporary external shock. Using counterfactuals, we find that much of the windfall was saved, due to the private sector. However, the control regime constrained private responses, leading to an inefficient use of the windfall. Rather than Dutch Disease there was a construction boom. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Bevan, David & Collier, Paul & Gunning, Jan Willem, 1992. "Anatomy of a Temporary Trade Shock: The Kenyan Coffee Boom of 1976-9," Journal of African Economies, Centre for the Study of African Economies, vol. 1(2), pages 271-305, August.
    • Handle: RePEc:oup:jafrec:v:1:y:1992:i:2:p:271-305
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    Cited by:

    1. Sandbu, Martin E., 2006. "Natural wealth accounts: A proposal for alleviating the natural resource curse," World Development, Elsevier, vol. 34(7), pages 1153-1170, July.
    2. Zaal, Fred & Oostendorp, Remco H., 2002. "Explaining a Miracle: Intensification and the Transition Towards Sustainable Small-scale Agriculture in Dryland Machakos and Kitui Districts, Kenya," World Development, Elsevier, vol. 30(7), pages 1271-1287, July.
    3. Raju, Sudhakar S. & Melo, Alberto, 2003. "Money, real output, and deficit effects of coffee booms in Colombia," Journal of Policy Modeling, Elsevier, vol. 25(9), pages 963-983, December.
    4. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    5. Fielding, David, 1997. "Adjustment, trade policy and investment slumps: evidence from Africa," Journal of Development Economics, Elsevier, vol. 52(1), pages 121-137, February.

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