Growing Inequality in the Coffee Global Value Chain: A Complex Network Assessment

Rebeca Utrilla-Catalan, Rocío Rodríguez-Rivero, Viviana Narvaez, Virginia Díaz-Barcos, Maria Blanco and Javier Galeano
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Rebeca Utrilla-Catalan: ETSIAAB, Universidad Politécnica de Madrid, 28040 Madrid, Spain
Rocío Rodríguez-Rivero: Department of Organization, Business Administration and Statistics, ETSI Industriales, Universidad Politécnica de Madrid, C/José Gutiérrez Abascal 2, 28006 Madrid, Spain
Viviana Narvaez: ETSIAAB, Universidad Politécnica de Madrid, 28040 Madrid, Spain
Virginia Díaz-Barcos: Department of Química y Tecnología de Alimentos, ETSIAAB, Universidad Politécnica de Madrid, Avda. Puerta de Hierro 4, 28040 Madrid, Spain
Javier Galeano: Complex System Group, Universidad Politécnica de Madrid, 28040 Madrid, Spain

Sustainability, 2022, vol. 14, issue 2, 1-27

Abstract: Following the liberalization of the coffee sector, governance and power balance in the international coffee trade has changed, with associated impacts on livelihoods in producing countries, most of which are middle- and low-income countries. Drawing on trade data for the period 1995–2018, we examine the dynamics and evolution of the international green coffee market to shed light on the re-distribution of value in the coffee supply chain. Data analysis shows that, over the studied period, the green coffee trade has increased considerably while the number of countries with a relevant role in trade has decreased, so that large exporting countries cover a higher share of trade, to the detriment of small exporting countries. We analyzed various properties of the global coffee trade network to provide insight on the relative contribution of countries not only in terms of their export value but also in terms of other selected features. The green coffee trade has gone from being distributed in many traditionally coffee-producing countries to concentrating mainly on the major coffee producers, as well as in some non-producing countries. These changes in the structure of the international green coffee market have led to greater inequality between producing and importing countries.

Keywords: global trade network; green coffee; network inequality; complex networks analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:2:p:672-:d:720167

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