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Stabilization Policies And Agricultural Impacts In Developing Countries: The Case Of Bolivia

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Author Info

  • De la Barra, Victor H.
  • Marchant, Mary A.
  • Isinika, Aida C.

Abstract

This research examines the success of stabilization policies to control hyperinflation in Bolivia. Money demand functions for the hyperinflation and stabilization periods were econometrically estimated and statistically tested. We conclude that the demand for money in Bolivia changed after stabilization policies were implemented, indicating that the new government's objectives were met. Stabilization policies resulted in real economic growth for Bolivia's economy, including its agricultural sector, where agricultural export shares increased tenfold as stabilization policies corrected overvalued exchange rates.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 27 (1995)
Issue (Month): 01 (July)
Pages:

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Handle: RePEc:ags:joaaec:15336

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: Bolivia; Developing countries; Hyperinflation; Money demand; Stabilization policies; Political Economy;

References

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  1. Valdes, Alberto, 1993. "The macroeconomic environment necessary for agricultural trade and price policy reforms," Food Policy, Elsevier, vol. 18(4), pages 272-282, August.
  2. Melvin, Michael, 1988. "The Dollarization of Latin America as a Market-Enforced Monetary Reform: Evidence and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 543-58, April.
  3. Caramazza, Francesco & Hostland, Doug & Poloz, Stephen, 1990. "The demand for money and the monetary policy process in Canada," Journal of Policy Modeling, Elsevier, vol. 12(2), pages 387-426.
  4. Chambers, Robert G. & Just, Richard E., 1982. "An investigation of the effect of monetary factors on agriculture," Journal of Monetary Economics, Elsevier, vol. 9(2), pages 235-247.
  5. Serletis, Apostolos, 1987. "On the Demand for Money in the United States," Empirical Economics, Springer, vol. 12(4), pages 249-55.
  6. Bagliano, Fabio-Cesare & Favero, Carlo A., 1992. "Money demand instability, expectations and policy regimes: A note on the case of Italy: 1964-1986," Journal of Banking & Finance, Elsevier, vol. 16(2), pages 331-349, April.
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Cited by:
  1. Miljkovic, Dragan & Garcia, Roberto J., 1996. "Employment In Agribusiness And Purchases Of Agricultural Products: The Effects Of Monetization In Yugoslavia," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(02), December.

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