How Equitable is Direct Trade? Exploring Markets and Innovation in the Global Coffee Value Chain
Date
2019
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Haverford College. Department of Economics
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eng
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Haverford users only
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Abstract
This paper studies the effects of Direct Trade presence within a country on that country’s coffee market, specifically with regard to the impact Direct Trade has on coffee farmers. This paper uses OLS and Fixed Effects regression models to measure the effects that the presence of Direct Trade has on average prices paid to coffee farmers and on average quantities of coffee produced. Using an extensive panel dataset containing annual coffee prices and production quantities from 14 major coffee producing countries in North and South America between the years 2000 and 2017, this paper determines that Direct Trade presence has a statistically significant positive effect on coffee prices paid to farmers within a given country. The paper also finds that Direct Trade presence has no statistically significant effect on the quantity of coffee produced in a given country.