Commodity Supply Management by Producing Countries A Case-Study of the Tropical Beverage Crops

by Maizels, Alfred; Bacon, Robert; Mavrotas, George

• ISBN13: 9780198233381
• ISBN10: 0198233388
• Format: Hardcover
• Copyright: 1997-10-02
• Publisher: Oxford University Press

Summary

The collapse in commodity prices since 1980 has been a major cause of the economic crisis in a large part of the Third World. This book demonstrates, using new econometric models, that the producing countries could have prevented this price collapse by appropriate supply management.

Table of Contents

List of Figures	ix	(2)
List of Tables	xi	(4)
List of Abbreviations	xv
Introduction	1	(6)
PART I. WORLD MARKET TRENDS AND SUPPLY MANAGEMENT OPTIONS	7	(98)
1. The International Economic Background	7	(14)
1.1. Recent Trends in International Commodity Trade	7	(7)
1.2. The Continuing Impasse in International Commodity Policy	14	(2)
1.3. Producer-only Supply Management	16	(5)
2. Problems of the World Markets for Tropical Beverages	21	(22)
2.1. Underlying Economic Problems	21	(4)
2.2. The Cocoa Market	25	(4)
2.3. The Coffee Market	29	(7)
2.4. The Tea Market	36	(7)
3. International Remedial Action	43	(14)
3.1. The International Cocoa Agreements	45	(3)
3.2. The International Coffee Agreements	48	(5)
3.3. International Negotiations on Tea	53	(4)
4. Supply Management Options	57	(10)
4.1. Alternative Approaches to Supply Management	59	(4)
4.2. Other Possible Mechanisms	63	(4)
5. Supply Management Simulations	67	(26)
5.1. Cocoa	68	(9)
5.2. Coffee	77	(8)
5.3. Tea	85	(8)
6. Summary of Findings and Policy Implications	93	(12)
6.1. Main Findings	93	(6)
6.2. Policy Implications	99	(6)
PART II. ECONOMETRIC ANALYSIS	105	(92)
7. The World Cocoa Market	105	(38)
7.1. The Demand for Cocoa	105	(8)
7.2. The Supply of Cocoa	113	(12)
7.3. The Determination of Cocoa Prices	125	(7)
Annexe: The Demand for Chocolate and the Demand for Cocoa	132	(11)
8. The World Coffee Market	143	(28)
8.1. The Demand for Coffee	143	(10)
8.2. The Production of Coffee	153	(7)
8.3. Prices and Market-Clearing	160	(11)
9. The World Tea Market	171	(26)
9.1. The Demand for Tea	171	(4)
9.2. The Supply of Tea	175	(6)
9.3. The Determination of Tea Prices	181	(3)
Annexe: A Model of Import Shares	184	(13)
STATISTICAL APPENDIX	197	(28)
A. Estimated Equations for the Econometric Models	197	(24)
B. Simulation Results	221	(4)
References	225	(4)
Index	229