Coffee, cocoa and economic growth in Brazil

Abstract

This paper analyzes the impacts of increases in prices of two primary products
– coffee and cocoa – on the growth of the national and regional economies. It tries to
understand the factors that have determined salutary effects in the coffee region and
negligible effects on the cocoa region. The results suggest that only a partial answer can be
found in the nature of these products, as proposed by the “staples” approach. The largest
effects seem to be connected with some social and macroeconomic characteristics prevalent
in these economies during the “boom” period.

JEL Classification: O47; Q11.