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Coffee boom, government expenditure, and agricultural prices: the Colombian experience

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  • García García, Jorge
  • Montes Llamas, Gabriel
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    Abstract

    In this report, the authors examine the effects on agricultural incentives in Colombia of two influential economic forces: the coffee boom in the 1970s and rapidly expanding public sectors. In Colombia, the turbulence in trade and exchange rate regimes brought about by the coffee boom presents a classic example of the Dutch-disease phenomenon. In their analysis of government's expanding role as a demander of goods and services, the authors also examine the effects on farm output and on rural employment as they pertain to rural incomes and wage rates under the argument that government expenditure biased toward the nontraded sector discourages growth in agriculture and industry.

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    File URL: http://www.ifpri.org/publication/coffee-boom-government-expenditure-and-agricultural-prices
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    Bibliographic Info

    Paper provided by International Food Policy Research Institute (IFPRI) in its series Research reports with number 68.

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    Date of creation: 1988
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    Handle: RePEc:fpr:resrep:68

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    Keywords: Agricultural policy Colombia.; Agricultural price supports Colombia.; Coffee industry Colombia.;

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    Cited by:
    1. Jaramillo, Carlos Felipe & Nupia, Oskar Andres, 1998. "The Link Between Farmgate And World Prices In The Wake Of Trade Liberalization: The Case Of Colombia," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20819, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Janssen, Willem & Londono, Norha Ruiz de, 1994. "Modernization of a peasant crop in Colombia: evidence and implications," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(1), January.
    3. Guterman, Lia, 2007. "Distortions to Agricultural Incentives in Colombia," Agricultural Distortions Working Paper 48392, World Bank.

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