Abstract
This chapter explores the linkages structure of the coffee industry in Colombia. It bases its empirical strategy on the “hypothetical extraction” method to isolate the systemic economic effects of the coffee industry’s value chain in a typical year of operations, looking at the impact on regional output and employment profiles by formalization and skills. The analysis shows the effects of a total extraction of coffee-related sectors from the Colombian economy on the national and regional total output, value-added, and employment by type of contract and educational level, revealing the direct and indirect importance of coffee goods to local value chains. The results suggest that policies to increase the value-added of coffee products and the content of services in coffee exports can increase income and employment, especially in regions more dependent on coffee production.
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Notes
- 1.
A worker who has a maximum of 5 years of study is classified as low skilled. The work considered as medium qualification is the one that has between 6 and 9 years of study and the one that has completed university as high.
- 2.
Further details on Colombian role in coffee foreign trade, particularly exports, are provided in Chap. 13.
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Istake, M., Sass, K.S., Otero-Cortés, A., Sayon, P.L. (2023). Chaining Juan Valdez: Linkages in the Colombian Coffee Production. In: Haddad, E.A., Bonet, J., Hewings, G.J.D. (eds) The Colombian Economy and Its Regional Structural Challenges. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-031-22653-3_10
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