IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/211.html
   My bibliography  Save this paper

Coffee pricing policies in the Dominican Republic

Author

Listed:
  • Varangis, Panos

Abstract

Coffee is an important crop for the Dominican Republic, accounting for an average of 11 percent of total exports by value during 1982-84. But for the last 10 years, coffee yields have been low, and production and exports stagnant. If current policies for coffee continue, production and exports are likely to decline even further and the Dominican Republic could have trouble filling its export quota under the International Coffee Agreement (ICA). This paper sees the high tax on coffee exports as the main disincentive to growth in coffee production. With a small econometric model of the Dominican coffee sector, the paper simulates the impact of export tax reductions under different assumptions about the operation of the ICA export quota system. The model suggests that if the ICA is continued, an export tax cut of 52 percent would produce the desired production level (to meet projected quota and nonquota export demand) by 2000. If the ICA is discontinued, the export tax must be eliminated to achieve the same production level.

Suggested Citation

  • Varangis, Panos, 1989. "Coffee pricing policies in the Dominican Republic," Policy Research Working Paper Series 211, The World Bank.
    • Handle: RePEc:wbk:wbrwps:211
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/08/18/000009265_3960927230546/Rendered/PDF/multi_page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Akiyama, Takamasa & Varangis, Panayotis, 1989. "Impact of the International Coffee Agreement's export quota system on the World's coffee market," Policy Research Working Paper Series 148, The World Bank.
    2. Akiyama, T. & Trivedi, P. K., 1987. "Vintage production approach to perennial crop supply : An application to tea in major producing countries," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 133-161.
    3. Imran, Mudassar & Duncan, Ron, 1988. "Optimal export taxes for exporters of perennial crops," Policy Research Working Paper Series 10, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deepananda Herath & Alfons Weersink, 2007. "Peasants and plantations in the Sri Lankan tea sector: causes of the change in their relative viability ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(1), pages 73-89, March.
    2. Roosen, Jutta & Hennessy, David A., 2001. "An Equilibrium Analysis Of Antibiotics Use And Replanting Decisions In Apple Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-15, December.
    3. Arvind Panagariya & Maurice Schiff, 1991. "Política Comercial, Exportaciones de Productos Básicos y Bienestar: Teoría y Aplicación al Cacao," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 28(84), pages 249-270.
    4. Gotsch, N. & Herrmann, R., 2000. "Assessing the expected welfare effects of biotechnological change on perennial crops under varying economic environments: a dynamic model for cocoa in Malaysia," Agricultural Systems, Elsevier, vol. 63(3), pages 211-228, March.
    5. Devadoss, Stephen & Luckstead, Jeff, 2010. "An analysis of apple supply response," International Journal of Production Economics, Elsevier, vol. 124(1), pages 265-271, March.
    6. Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2010. "Measures of fixed capital in agriculture," Policy Research Working Paper Series 5472, The World Bank.
    7. Jaeger, William & Humphreys, Charles, 1988. "The Effect of Policy Reforms on Agricultural Incentives In Sub-Saharan Africa," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270395, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Takamasa Akiyama & Akihiko Nishio, 1996. "Indonesia's cocoa boom : hands-off policy encourages smallholder dynamism," Policy Research Working Paper Series 1580, The World Bank.
    9. Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
    10. Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
    11. Takamasa Akiyama & Coleman, Jonathan R., 1993. "A production function-based policy simulation model of perennial commodity markets," Policy Research Working Paper Series 1097, The World Bank.
    12. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2013. "Economic Consequences of Pierce’s Disease and Related Policy in the California Winegrape Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-29, August.
    13. Gaminda Ganewatta & Robert Waschik & Sisira Jayasuriya & Goeff Edwards, 2006. "Impact of Protection on Domestic Processing of Primary Commodities for Export Markets," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 7(1), pages 1-18, March.
    14. Foster, Kenneth A. & Mwanaumo, Anthony, 1995. "Estimation of dynamic maize supply response in Zambia," Agricultural Economics, Blackwell, vol. 12(1), pages 99-107, April.
    15. Zhao, Xin & Brady, Michael P. & Tozer, Peter R., 2015. "Do Farmers Really Plant Apples for Their Income and Cherries for Their Retirement? The Effects of Risk, Scope and Scale on Orchard Land Allocation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205663, Agricultural and Applied Economics Association.
    16. Kumar, Parmod & Sharma, Anil, 2006. "Perennial Crop Supply Response Functions: The Case of Indian Rubber, Tea and Coffee," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(4), pages 1-17.
    17. Fleskens, Luuk & Graaff, Jan de, 2010. "Conserving natural resources in olive orchards on sloping land: Alternative goal programming approaches towards effective design of cross-compliance and agri-environmental measures," Agricultural Systems, Elsevier, vol. 103(8), pages 521-534, October.
    18. Akiyama, Takamasa & Varangis, Panayotis, 1989. "Impact of the International Coffee Agreement's export quota system on the World's coffee market," Policy Research Working Paper Series 148, The World Bank.
    19. Larson, Donald F., 1990. "The Indonesian vegetable oils sector : modeling the impact of policy changes," Policy Research Working Paper Series 382, The World Bank.
    20. Kazianga, Harounan & Masters, William A., 2002. "Property Rights, Production Technology And Deforestation: Cocoa In West Africa," 2002 Annual meeting, July 28-31, Long Beach, CA 19871, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:211. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.