Colombia and the Coffee Export Upsurge During the 1920?S Decade. Colombia. IV. 'Facing the Crisis Coffee Economy'

17 Pages Posted: 7 Dec 1999

Abstract

Colombian structural change occurred after the export economy benefited from the prolonged upsurge of world trade cycle and so did during the twenties the coffee industry. As causes of the abrupt decline of the external sector in Colombia export activity are attributed first the generalized decline of the economic activity in industrialized countries contracting the demand for commodities including coffee. Brazil largest world coffee producer attempted a stock piling policy with questionable results on sustaining world price levels. Second the vulnerability of the United State?s balance of payments crisis after manifested lack of confidence in the well being of its own economy, signifying fewer commodity imports. This situation conducted to the abrupt contraction of foreign direct investment that contributed to further down the current account and the level of public investment of the country with deleterious consequences on the level of the economic activity.

Colombia experimento cambios estructurales durante el prolongado ciclo de ascenso del comercio mundial, y de la economia cafetera internacional en la dedada de 1920. Se estudian y comparan las consecuencias externas de la Gran Depresion del a?o de 1930 en el manejo institucional del pais. El origen externo de la crisis se resume en dos aspectos principales. Primero la situacion de paro en las economias industrializadas con lo cual se redujo la demanda de bienes basicos incluyendo el cafe, a pesar de que Brasil primer productor mundial de cafe intento a gran costo estabilizar los mercados. Segundo la caida de la inversion extranjera que causo serios efectos en la balanza de pagos del pais y en la actividad economica. Se analizan otros factores que profundizaron la crisis internacional, como fue la vulnerabilidad que enfrento los Estados Unidos al convertirse en el principal acreedor en cuenta corriente.

Note: Abstract is in English and Spanish. Paper is in Spanish only.

JEL Classification: Q12, Q13

Suggested Citation

Pérez-Toro, José, Colombia and the Coffee Export Upsurge During the 1920?S Decade. Colombia. IV. 'Facing the Crisis Coffee Economy'. Available at SSRN: https://ssrn.com/abstract=187448 or http://dx.doi.org/10.2139/ssrn.187448

José Pérez-Toro (Contact Author)

Universidad Jorge Tadeo Lozano ( email )

Carrera 4 No 22-61
Bogota, DC Cund 1
Colombia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
112
Abstract Views
1,919
rank
289,426
PlumX Metrics