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Acquisition, Management, and Efficiency in Rwanda’s Coffee Industry

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Markets in low-income countries often display long tails of inefficient firms and signicant misallocation.
This paper studies Rwandan coffee mills, an industry initially characterized by widespread inefficiencies that has recently seen a process of consolidation in which exporters have acquired control of a significant number of mills giving rise to multi-mill groups. We combine administrative data with original surveys of mills and acquirers to understand the consequences of this consolidation.

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