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The Role of the 1994-95 Coffee Boom in Uganda's Recovery

Author

Listed:
  • Scott McDonald

    (Department of Economics, The University of Sheffield)

  • Arja
  • Lindsay Chant

Abstract

This paper reports a CGE analysis that explores the consequences of the 1994-95 rise in the international price of coffee for Uganda´s economy. Evidence is found for a small effect on medium-term growth and poverty reduction. Aid dependence is among the reasons why this effect is not found to be larger. Major beneficiary groups are not only the farmers to which the windfall initially accrued but also urban wage earners and the urban self-employed.

Suggested Citation

  • Scott McDonald & Arja & Lindsay Chant, 2004. "The Role of the 1994-95 Coffee Boom in Uganda's Recovery," Working Papers 2004011, The University of Sheffield, Department of Economics, revised Aug 2004.
    • Handle: RePEc:shf:wpaper:2004011
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2004_11.html
    File Function: First version, 2004
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    References listed on IDEAS

    as
    1. Jan Dehn, 2000. "Commodity price uncertainty and shocks: implications for economic growth," CSAE Working Paper Series 2000-10, Centre for the Study of African Economies, University of Oxford.
    2. Grilli, Enzo R & Yang, Maw Cheng, 1988. "Primary Commodity Prices, Manufactured Goods Prices, and the Terms of Trade of Developing Countries: What the Long Run Shows," The World Bank Economic Review, World Bank, vol. 2(1), pages 1-47, January.
    3. Bevan, D L & Collier, P & Gunning, J W, 1987. "Consequences of a Commodity Boom in a Controlled Economy: Accumulation and Redistribution in Kenya 1975-83," The World Bank Economic Review, World Bank, vol. 1(3), pages 489-513, May.
    4. Ritva Reinikka & Paul Collier, 2001. "Uganda's Recovery : The Role of Farms, Firms, and Government," World Bank Publications - Books, The World Bank Group, number 13850, December.
    5. Paul Cashin & Hong Liang & C. John McDermott, 2000. "How Persistent Are Shocks to World Commodity Prices?," IMF Staff Papers, Palgrave Macmillan, vol. 47(2), pages 1-2.
    6. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," The World Bank Economic Review, World Bank, vol. 5(1), pages 57-82, January.
    7. Jan Dehn, 2000. "Commodity Price Uncertainty and Shocks: Implications for Economic Growth," Economics Series Working Papers WPS/2000-10, University of Oxford, Department of Economics.
    8. Cashin, Paul & McDermott, C. John & Scott, Alasdair, 2002. "Booms and slumps in world commodity prices," Journal of Development Economics, Elsevier, vol. 69(1), pages 277-296, October.
    9. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    10. A. Wood & K. Jordan, 2000. "Why Does Zimbabwe Export Manufactures and Uganda Not? Econometrics Meets History," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 91-116.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The impact of commodity price changes on rural households : the case of coffee in Uganda," Policy Research Working Paper Series 4088, The World Bank.
    2. Arjan Verschoor, 2007. "The Trojan‐Horse Principle in Development Assistance: A Reading of Uganda’s Experience with Aid," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 78-91, February.

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