Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers
AbstractLiberalization 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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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9668.
Date of creation: May 2003
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Publication status: published as Christopher Gilbert, Panos Varangis. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers ," in Robert E. Baldwin and L. Alan Winters, editors, "Challenges to Globalization: Analyzing the Economics" University of Chicago Press (2004)
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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 - - - Empirical Studies of Trade
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