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Coffee Market Liberalisation and the Implications for Producers in Brazil, Guatemala and India

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  • Bill Russell
  • Sushil Mohan
  • Anindya Banerjee

Abstract

The standard approach to modelling the relationship between world and producer prices of coffee does not incorporate the effects of changing government policies and market structures. These changes have led to large structural breaks in the relationship between the prices implying the standard estimates are biased. We model coffee prices in Brazil, Guatemala and India allowing for the structural breaks and show that the liberalisation of coffee markets has benefited producers substantially both in terms of a higher share of the world price of coffee and higher real prices. This suggests that calls to re-regulate coffee markets may be misplaced. Copyright 2012, Oxford University Press.

Suggested Citation

  • Bill Russell & Sushil Mohan & Anindya Banerjee, 2012. "Coffee Market Liberalisation and the Implications for Producers in Brazil, Guatemala and India," World Bank Economic Review, World Bank Group, vol. 26(3), pages 514-538.
  • Handle: RePEc:oup:wbecrv:v:26:y:2012:i:3:p:514-538
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    File URL: http://hdl.handle.net/10.1093/wber/lhr055
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    Cited by:

    1. Stavrakoudis, Athanassios & Panagiotou, Dimitrios, 2016. "Price dependence between coffee qualities: a copula model to evaluate asymmetric responses," MPRA Paper 75994, University Library of Munich, Germany.
    2. Minten, Bart & Dereje, Mekdim & Engeda, Ermias & Kuma, Tadesse, 2015. "Coffee value chains on the move: Evidence from smallholder coffee farmers in Ethiopia:," ESSP working papers 76, International Food Policy Research Institute (IFPRI).
    3. repec:ags:aergaa:262437 is not listed on IDEAS
    4. repec:eee:ecmode:v:72:y:2018:i:c:p:190-201 is not listed on IDEAS
    5. repec:ags:jlaare:264067 is not listed on IDEAS

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