Does Market Liberalization Jeopardize Export Quality? Cameroonian Cocoa, 1995-2000
A frequently encountered argument against the liberalization of markets for tropical crop commodities is that this may jeopardize export quality. We look at this argument in the specific case of Cameroonian cocoa exports. The Cameroonian experience is important because an alleged decline in cocoa quality has often been cited as illustrating the dangers of market liberalization. That claim is not supported by examination of the unit value of cocoa imports into the European Union which demonstrates constant relativities over time in the unit value of cocoa imports from major west African producers. We argue that, in a liberalized environment, export quality is determined by the preferences of market participants and the technology of quality production. In Cameroon, changes in transport technology resulted in a diminished demand for premium grade cocoa while increased competition from cocoa buyers resulted in a transfer of some processing functions from farmers to intermediaries. There is no evidence of any significant quality problems arising from market liberalization. We conclude that government does not need to regulate in order to ensure a normal commercial outcome. Concerns about export quality should not be an issue in the continuing African market liberalization debate.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Feb 2002|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
References listed on IDEAS
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.:
- Knudsen, Odin & Nash, John, 1990. "Domestic Price Stabilization Schemes in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 539-558, April.
- Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
- Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
- Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications, The World Bank, number 13852.
- Banerjee, Anindya & Hendry, David F, 1992. "Testing Integration and Cointegration: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 225-255, August.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:3224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.