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Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers

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Author Info
Christopher L. Gilbert
Panos Varangis
Abstract

Liberalization of tropical agricultural markets has brought globalization, in the sense that all producers now face world rather than domestic prices. Producer prices have tended to rise as a share of fob prices as intermediation costs and tax has declined. However, in conjunction with inelastic demand, the downward shift of the aggregate supply curve results in lower world prices. Farmers therefore get a higher share of a lower price. Cocoa is the market where these changes have been most pronounced. The incidence of the liberalization benefits in cocoa is largely on developed country consumers at the expense of the governments of the exporting countries and farmers in non-liberalizing (non-African) countries. Farmers in liberalized African markets are broadly neither better nor worse off.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9668.

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Date of creation: May 2003
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Handle: RePEc:nbr:nberwo:9668

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Find related papers by JEL classification:
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kala Krishna, 1995. "The Adding Up Problem: A Targeting Approach," NBER Working Papers 4999, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January. [Downloadable!] (restricted)
  3. Schiff, Maurice, 1994. "Commodity exports and the adding up problem in developing countries : trade, investment, and lending policy," Policy Research Working Paper Series 1338, The World Bank. [Downloadable!]
  4. Newbery, David M, 1989. "The Theory of Food Price Stabilisation," Economic Journal, Royal Economic Society, vol. 99(398), pages 1065-82, December. [Downloadable!] (restricted)
  5. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February. [Downloadable!] (restricted)
  6. Akiyama, Takamasa & Larson, Donald F. & DEC, 1994. "The adding-up problem : strategies for primary commodity exports in sub-Saharan Africa," Policy Research Working Paper Series 1245, The World Bank. [Downloadable!]
  7. Paxson, Christina H, 1993. "Consumption and Income Seasonality in Thailand," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 39-72, February. [Downloadable!] (restricted)
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  8. Gilbert, Christopher L., 1987. "International commodity agreements: Design and performance," World Development, Elsevier, vol. 15(5), pages 591-616, May. [Downloadable!] (restricted)
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  1. Yeboah, Osei-Agyeman & Shaik, Saleem & Wozniak, Shawn & Allen, Albert J., 2008. "Increased Cocoa Bean Exports under Trade Liberalization: A Gravity Model Approach," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6819, Southern Agricultural Economics Association. [Downloadable!]
  2. Kym Anderson, 2004. "Agricultural trade reform and poverty reduction in developing countries," The Institute for International Integration Studies Discussion Paper Series iiisdp014, IIIS. [Downloadable!]
    Other versions:
  3. Dani Rodrick, 2003. "Growth Strategies," Economics working papers 2003-17, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  4. Abbott, Philip, 2007. "Distortions to Agricultural Incentives in Cote d’Ivoire," Agricultural Distortions Working Paper 48522, World Bank. [Downloadable!]
  5. Burger, Kees, 2008. "Optimal export taxes – the case of cocoa in Cote d'Ivoire," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6395, European Association of Agricultural Economists. [Downloadable!]
  6. Wilcox, Michael D. & Abbott, Philip C., 2006. "Can Cocoa Farmer Organizations Countervail Buyer Market Power?," 2006 Annual meeting, July 23-26, Long Beach, CA 21261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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