Smuggling and supply response: coffee in Ethiopia
During the 1980s substantial smuggling of coffee has been taking place in Ethiopia. The recent devaluation has raised hopes that substantial quantities of coffee will flow back to the official channels. Data on the incentives to supply to the different channels is collated. A model of official supplies is formulated which nests an empirical test between the smuggling models by Bhagwati and Hansen (1973) and by Pitt (1981). The econometric results favour the latter, and show a small but significant effect of the premium in the black market and a positive total supply response, relative to the main competing crop, chat. The results imply that the increases in export eantings from the devaluation will be quite limited.
|Date of creation:||1995|
|Date of revision:|
|Publication status:||Published in Ethiopian Journal of Economics, 3(2), October 1994, pp49-82; World Development, 23(10), October 1995, pp.1795-1813|
|Contact details of provider:|| Postal: Manor Road, Oxford, OX1 3UQ|
Phone: +44-(0)1865 271084
Fax: +44-(0)1865 281447
Web page: http://www.csae.ox.ac.uk/
More information through EDIRC
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.:
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- Azam, Jean-Paul & Besley, Timothy, 1989.
"General equilibrium with parallel markets for goods and foreign exchange: Theory and application to Ghana,"
Elsevier, vol. 17(12), pages 1921-1930, December.
- Azam, J.P. & Besley, T., 1988. "General Equilibrium With Parallel Markets For Goods And Foreign Exchange: Theory And Application For Ghana," Papers 143, Princeton, Woodrow Wilson School - Development Studies.
- Azam, Jean-Paul & Besley, Timothy, 1991. "Peasant supply response under rationing: The role of the food market," European Journal of Political Economy, Elsevier, vol. 7(3), pages 331-343, October.
- Bevan, D. L. & Bigsten, A. & Collier, P. & Gunning, J. W., 1987. "Peasant supply response in rationed economies," World Development, Elsevier, vol. 15(4), pages 431-439, April.
- Marian E. Bond, 1983. "Agricultural Responses to Prices in Sub-Saharan African Countries (RÃ©actions du secteur agricole aux prix en Afrique au sud du Sahara) (Reacciones de la agricultura ante los precios en los paÃses de," IMF Staff Papers, Palgrave Macmillan, vol. 30(4), pages 703-726, December.
- Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-92, June.
- Dercon, Stefan, 1993. "Peasant Supply Response and Macroeconomic Policies: Cotton in Tanzania," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 2(2), pages 157-94, October.
- Jagdish Bhagwati, 1981. "Alternative theories of illegal trade : Economic consequences and statistical detection," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(3), pages 409-427, September.
- Jagdish Bhagwati & Bent Hansen, 1973. "A Theoretical Analysis of Smuggling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(2), pages 172-187.
- Devarajan, Shantayanan & Jones, Christine & Roemer, Michael, 1989. "Markets under price controls in partial and general equilibrium," World Development, Elsevier, vol. 17(12), pages 1881-1893, December.
- Pitt, Mark M., 1981. "Smuggling and price disparity," Journal of International Economics, Elsevier, vol. 11(4), pages 447-458, November.
When requesting a correction, please mention this item's handle: RePEc:csa:wpaper:1995-05. 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: (Richard Payne)
If references are entirely missing, you can add them using this form.