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Traditional Agricultural Exports, External Dependency And Domestic Price Policies. African Coffee Exports In A Comparative Perspective

Author

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  • M. BRANCHI
  • G. GABRIELE
  • V. SPIEZIA

Abstract

The paper analyses the impact of price variables on coffee production and exports in a selected group of developing countries, with particular focus on a subgroup of Sub-Saharan countries. Due to the dependency of coffee producers on the vagaries of the international market, direct crop taxation and exchange rate policies in these countries are found to be only partially endogenous. The long-run impact of policies on producers’ behaviour is then tested by means of a cross-country linear regression model. About one third of cross-country variability in planted areas is found to be attributable to exchange rate and, to a lesser extent, taxation policies. However, price policies do not appear to exert any significant impact on yields. No parametrically significant difference between sub-Saharan Africa and the rest of the world emerges from the analysis. The results show that, in the case of coffee, the weight of domestic price policies in determining production and exports is relevant, but should not be exaggerated, as most of the cross-country variability in performance in the coffee sector is in fact related to non-price factors, some of which can be modified by strategic non-price policy interventions.

Suggested Citation

  • M. Branchi & G. Gabriele & V. Spiezia, 1999. "Traditional Agricultural Exports, External Dependency And Domestic Price Policies. African Coffee Exports In A Comparative Perspective," UNCTAD Discussion Papers 140, United Nations Conference on Trade and Development.
  • Handle: RePEc:unc:dispap:140
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    References listed on IDEAS

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    1. Jan Willem Gunning & Paul Collier, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March.
    2. Schiff, Maurice & Montenegro, Claudio E, 1997. "Aggregate Agricultural Supply Response in Developing Countries: A Survey of Selected Issues," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 393-410, January.
    3. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
    4. repec:fth:oxesaf:97-2.1 is not listed on IDEAS
    5. Jaeger, W.K., 1992. "The Effects of Economic Policies on African Agriculture," World Bank - Discussion Papers 147, World Bank.
    6. Gabriele, Alberto, 1994. "Price elasticity of Central American agricultural exports," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Hayami, Y & Platteau, J-P, 1997. "Resource Endowments and Agricultural Development : Africa vs. Asia," Papers 192, Notre-Dame de la Paix, Sciences Economiques et Sociales.
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    Cited by:

    1. Jörg Mayer, 2009. "Policy Space: What, for What, and Where?," Development Policy Review, Overseas Development Institute, vol. 27(4), pages 373-395, July.
    2. Enrique Cosio-Pascal, 2008. "The Emerging Of A Multilateral Forum For Debt Restructuring: The Paris Club," UNCTAD Discussion Papers 192, United Nations Conference on Trade and Development.
    3. Gabriele, Alberto & Vanzetti, David, 2005. "Long Black: Surviving the coffee crisis," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137867, Australian Agricultural and Resource Economics Society.
    4. Sebastian Dullien, 2009. "Central Banking, Financial Institutions And Credit Creation In Developing Countries," UNCTAD Discussion Papers 193, United Nations Conference on Trade and Development.

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