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Coffee prices and Smuggling in Ethiopia

Author

Listed:
  • Dercon, Stefan
  • Lulseged, Ayalew

Abstract

Official and black market coffee price series are brought together to discuss the incentives to produce coffee since 1963. On the basis of empirical analysis of prices and supply response, it is argued that some increased export earrings can be expected from a switch from smuggling into official channels. However, these increases will be relatively small. Coffee production is found to be responsive to prices, but this effect is most likely to be relative to other crop prices, in particular chat. During the period of the Dergue, supply response was found to be smaller than in the 1960s reflecting the adverse climate for expansion of crop production existing during the 1970s and 1980s Following the devaluation, coffee production may well increase again, but the increases are unlikely to be very large.

Suggested Citation

  • Dercon, Stefan & Lulseged, Ayalew, 1994. "Coffee prices and Smuggling in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 3(2), pages 108-108, October.
    • Handle: RePEc:ags:eeaeje:251831
    DOI: 10.22004/ag.econ.251831
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    Citations

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    Cited by:

    1. Derrese Degefa, 2001. "The parallel foreign exchange market and macroeconomic performance in Ethiopia," Working Papers 107, African Economic Research Consortium, Research Department.
    2. Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Aggregate agricultural supply response in Ethiopia: a farm-level analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 605-620.
    3. Shikur, Zewdie Habte, 2021. "Potato and Tomato Supply and Yield Responses to Policy in Ethiopia," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.

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