The Consequences of the 1976-77 Coffee Boom on the Tanzanian Economy: A Test of the Dutch Disease Model

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Periodical article

Title:	The Consequences of the 1976-77 Coffee Boom on the Tanzanian Economy: A Test of the Dutch Disease Model
Authors:	Musonda, F. Mndeme Luvanda, Eliab
Year:	1991
Periodical:	Eastern Africa Economic Review
Volume:	7
Issue:	2
Pages:	1-16
Language:	English
Geographic term:	Tanzania
Subjects:	economic conditions market coffee 1970-1979 Economics and Trade
Abstract:	This study tests the Dutch disease hypothesis that a boom in a single export commodity may adversely affect other export commodities in the case of Tanzania. The results in this study suggest that, with respect to the coffee boom of 1976-1977, the prediction of the Dutch disease model is not supported by the data. However, the study reveals that the distribution pattern of the gains from the boom plays a significant role in the overall outcome of the boom. In the case of Tanzania the government was the major beneficiary and the boom was translated into ambitious development expenditure programmes. Since the benefits of the boom did not accrue to farmers, there were no observed changes in production pattern as a result of the boom. App., bibliogr., sum.