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Anatomy of a temporary trade shock: the Kenyan coffee boom of 1976-9



Anatomy of a temporary trade shock: the Kenyan coffee boom of 1976-9



Journal of African Economies 1(2): 271-305



The coffee boom of 1976-79 in Kenya was an archetypal temporary external shock. Using counterfactuals, it is found 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.

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