Coffee Market Liberalisation and the Implications for Producers in Brazil, Guatemala and India

Bill Russell, Sushil Mohan, Anindya Banerjee

    Research output: Contribution to journalArticlepeer-review

    Abstract

    The standard approach to modelling the relationship between world and producer prices of coffee does not incorporate the effects of changing government policies and market structures. These changes have led to large structural breaks in the relationship between the prices implying the standard estimates are biased. We model coffee prices in Brazil, Guatemala and India allowing for the structural breaks and show that the liberalisation of coffee markets has benefited producers substantially both in terms of a higher share of the world price of coffee and higher real prices. This suggests that calls to re-regulate coffee markets may be misplaced.
    Original languageEnglish
    Pages (from-to)514-538
    JournalThe World Bank Economic Review
    Volume26
    Issue number3
    DOIs
    Publication statusPublished - 10 Jan 2012

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