Coffee prices and Smuggling in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Dercon Stefan


Official and black market coffee price series are brought together to discuss the incentives to produce coffee since 1963. On the basis of empirical analysis of prices and supply response, it is argued that some increased export earrings can be expected from a switch from smuggling into official channels. However, these increases will be relatively small. Coffee production is found to be responsive to prices, but this effect is most likely to be relative to other crop prices, in particular chat. During the period of the Dergue, supply response was found to be smaller than in the 1960s reflecting the adverse climate for expansion of crop production existing during the 197s and 1980s Following the devaluation, coffee production may well increase again, but the increases are unlikely to be very large

Corporate Author:Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Coffee – Prices

Secondary Descriptor:Commerce

Geographic Descriptors:Ethiopia
Cataloge Date:03/02/2013
Broad Subject heading:Coffee Industry
Call Number:330.05 ETH JOU
Serial Key Title:Ethiopian Journal of Economics
Publication catagory:Ethiopian Journal of Economics
Content type:EEA Publication
Year:October, 1994
Publication date:1994-03-02 00:00:00
Forum or Discussion date:2013-03-02 00:00:00
PDF file: Dercon and Ayalew_Coffee prices and Smuggling in Ethiopia.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Serial (Journal)
Current frequency:Semiannual
Author: Dercon Stefan and Ayalew Lulseged

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