Lessons from Long-Run (1975–2017) Structural Change in Colombia’S Coffee Production

Saenz M, Alvarez D, Brock G (2021). Lessons from long-run (1975–2017) structural change in Colombia’s coffee production. Agricultural and Resource Economics Review , 50(2), pp. 201-225

Posted: 14 Apr 2021 Last revised: 30 Jul 2021

See all articles by Mariana Saenz

Mariana Saenz

Georgia Southern University

Diego Alvarez

affiliation not provided to SSRN

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: March 31, 2021

Abstract

Although coffee is still an important agricultural commodity in Colombia, the coffee share of GDP has significantly declined over the past 40 years. Controlling for changes in relative prices, factor endowments, and technological change, we analyze the coffee share decline in conjunction with other agricultural output by applying a Vector Error Correction model. The results indicate that while market liberalization policies contributed to the declining coffee share of GDP, the decline was partly offset by the end of coffee export quotas. Our results support policies in favor of assistance for farmers to compete in international markets.

Keywords: coffee share, Colombia, GDP function, structural change, VECM

Suggested Citation

Saenz, Mariana and Alvarez, Diego and Brock, Gregory, Lessons from Long-Run (1975–2017) Structural Change in Colombia’S Coffee Production (March 31, 2021). Saenz M, Alvarez D, Brock G (2021). Lessons from long-run (1975–2017) structural change in Colombia’s coffee production. Agricultural and Resource Economics Review , 50(2), pp. 201-225, Available at SSRN: https://ssrn.com/abstract=3816771

Mariana Saenz (Contact Author)

Georgia Southern University ( email )

P.O. Box 8151
Statesboro, GA 30460-8151
United States

Diego Alvarez

affiliation not provided to SSRN

Gregory Brock

Georgia Southern University - Department of Economics ( email )

P.O. Box 8153
Statesboro, GA 30460-8153
United States
912-478-5579 (Phone)

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