Anatomy of a Temporary Trade Shock: The Kenyan Coffee Boom of 1976-9

David Bevan, Paul Collier and Jan Willem Gunning

Journal of African Economies, 1992, vol. 1, issue 2, 271-305

Abstract: The coffee boom of 1976-9 was an archetypal temporary external shock. Using counterfactuals, we find that much of the windfall was saved, due to the private sector. However, the control regime constrained private responses, leading to an inefficient use of the windfall. Rather than Dutch Disease there was a construction boom. Copyright 1992 by Oxford University Press.

Date: 1992
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