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Measuring national interests in the international coffee agreement

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  • Herrmann, Roland

Abstract

This article shows how national interests in price-changing international commodity agreements can be measured. Two approaches are distinguished. Firstly, changes in national interests can be measured that are caused by the introduction of an international commodity agreement in an otherwise unregulated world market. This approach is based on a comparison of the situations with and without a commodity agreement. It represents a positive approach to measuring national interests. Secondly, changes in national interests can be measured that result from the individual country's decision to participate in the agreement or to stay outside. This approach compares the situation of participation with that of non-participation in an existing commodity agreement. As the consequences of a national decision are analyzed, it is a normative or decision-oriented approach to measuring national interests. The ICA is a particularly interesting scheme to show the two approaches, as some countries participate in the agreement while others do not. This has led to the co-existence of a controlled and an uncontrolled market with different prices.

Suggested Citation

  • Herrmann, Roland, 1987. "Measuring national interests in the international coffee agreement," Kiel Working Papers 288, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:288
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    1. Lord, Montague J., 1981. "Distributional effects of international commodity price stabilization: Do the aggregate gains apply to individual producing countries?," Journal of Policy Modeling, Elsevier, vol. 3(1), pages 61-75, February.
    2. Herrmann, Roland, 1987. "Uncontrolled prices on a market with supply control," Economics Letters, Elsevier, vol. 23(2), pages 129-133.
    3. Herrmann, Roland, 1986. "Free riders and the redistributive effects of international commodity agreements: The Case of Coffeee," Journal of Policy Modeling, Elsevier, vol. 8(4), pages 597-621.
    4. U. Koester, 1979. "National and international aspects of commodity stabilisation schemes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 6(2), pages 233-255.
    5. Nguyen, Duc Tin, 1980. "Partial Price Stabilization and Export Earning Instability," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 340-352, July.
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    1. Herrmann, Roland, 1988. "National Interests in International Commodity Agreements: A Theoretical Framework and Quantitative Results For the Export Quota Scheme in Coffee," 1988 Conference, August 24-31, 1988, Buenos Aires, Argentina 183163, International Association of Agricultural Economists.

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