The Rise and Decline of Rent-Seeking Activity in the Brazilian Coffee Sector: Lessons from the Imposition and Removal of Coffee Export Quotas

UC Davis Agricultural and Resource Economics Working Paper No. 04-004

54 Pages Posted: 24 Jun 2004

See all articles by Lovell S. Jarvis

Lovell S. Jarvis

University of California, Davis - Department of Agricultural and Resource Economics

Date Written: June 2005

Abstract

Brazil, the world's largest coffee exporter, encouraged efforts in the 1960s to form the International Coffee Agreement (ICA), which restricted total coffee exports via country export quotas. The quotas led to significant domestic quota rents in producing countries. This paper analyzes the effects of rent seeking in Brazil. The Brazilian Institute of Coffee (IBC), which was responsible for coffee policy, was the focus of rent seeking. The paper models the policy instruments used by the IBC, shows how rent seeking affected policy, industry efficiency and the distribution of rents, explains the causes and effects of IBC reforms in the late 1980s, and draws lessons from the experience.

Keywords: South America, Brazil, International Coffee Agreement, rent seeking, export tax rebates

Suggested Citation

Jarvis, Lovell S., The Rise and Decline of Rent-Seeking Activity in the Brazilian Coffee Sector: Lessons from the Imposition and Removal of Coffee Export Quotas (June 2005). UC Davis Agricultural and Resource Economics Working Paper No. 04-004, Available at SSRN: https://ssrn.com/abstract=558348 or http://dx.doi.org/10.2139/ssrn.558348

Lovell S. Jarvis (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

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