Coffee Boom, Government Expenditure, and Agricultural Prices: The Colombian Experience

摘要

In the report Colombia's economic decline in the 1980s is traced to two developments in the 1970s, the coffee boom, which drew resources to the coffee sector and discouraged other sectors, and the growth of government spending, which resulted in a fiscal deficit and a reduction in international reserves. To determine the consequent impact on agriculture, the effects of terms-of-trade changes on the distribution of income, the movement of real wages in agriculture, and the supply response are examined to determine if changes in relative prices have affected output.