Dr, Department of Agricultural Economics, Nanjing Agricultural University, Nanjing, China
Research Article
The Impact of Exchange Rate on Ethiopia’s Coffee Export
Author(s): Solomon Tewelde Argaie*
Although coffee constitutes the largest share of exports, producers in Ethiopia have historically received a small percentage of the export revenue from the price of green coffee. Reasons often mentioned are heavy government intervention and high marketing and processing costs. Before 1992, government regulation of the domestic coffee market in the form of fixed producer prices and the Ethiopian Coffee Marketing Corporation's monopoly power put a substantial wedge between the producer price and the world price of coffee by imposing an implicit tax on producers. Having liberalized the market and adopted a floating exchange rate regime to boost exports (coffee) as the country struggles with foreign exchange shortages, not much has improved in exports (coffee) or foreign reserve availability. This paper utilizes monthly data from 2010-2015 to develop a multiple regression model to de.. Read More»
DOI:
10.37421/2162-6359.2021.10.597
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