Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia

Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia's coffee—its most important export crop. Relying on unique pr...

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Detalles Bibliográficos
Autores principales: Tamru, Seneshaw, Minten, Bart, Swinnen, Johan
Formato: Journal Article
Lenguaje:Inglés
Publicado: Agricultural and Applied Economics Association 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142285
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author Tamru, Seneshaw
Minten, Bart
Swinnen, Johan
author_browse Minten, Bart
Swinnen, Johan
Tamru, Seneshaw
author_facet Tamru, Seneshaw
Minten, Bart
Swinnen, Johan
author_sort Tamru, Seneshaw
collection Repository of Agricultural Research Outputs (CGSpace)
description Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia's coffee—its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. We further find that the consequent high wholesale prices for coffee are transmitted to producers, so that coffee farmers are unintended beneficiaries of this rent.
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spelling CGSpace1422852025-12-08T10:11:39Z Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia Tamru, Seneshaw Minten, Bart Swinnen, Johan imports supply chains exports rent distribution trade coffee food prices exchange rate prices Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia's coffee—its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. We further find that the consequent high wholesale prices for coffee are transmitted to producers, so that coffee farmers are unintended beneficiaries of this rent. 2021-01-01 2024-05-22T12:10:16Z 2024-05-22T12:10:16Z Journal Article https://hdl.handle.net/10568/142285 en https://doi.org/10.2499/p15738coll2.133414 Open Access Agricultural and Applied Economics Association Tamru, Seneshaw; Minten, Bart; and Swinnen, Johan. 2021. Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia. Agricultural Economics 52(1): 81-95. https://doi.org/10.1111/agec.12608
spellingShingle imports
supply chains
exports
rent distribution
trade
coffee
food prices
exchange rate
prices
Tamru, Seneshaw
Minten, Bart
Swinnen, Johan
Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title_full Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title_fullStr Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title_full_unstemmed Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title_short Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia
title_sort trade value chains and rent distribution with foreign exchange controls coffee exports in ethiopia
topic imports
supply chains
exports
rent distribution
trade
coffee
food prices
exchange rate
prices
url https://hdl.handle.net/10568/142285
work_keys_str_mv AT tamruseneshaw tradevaluechainsandrentdistributionwithforeignexchangecontrolscoffeeexportsinethiopia
AT mintenbart tradevaluechainsandrentdistributionwithforeignexchangecontrolscoffeeexportsinethiopia
AT swinnenjohan tradevaluechainsandrentdistributionwithforeignexchangecontrolscoffeeexportsinethiopia