Advanced Search
MyIDEAS: Login

Agriculture and the macroeconomy

Contents:

Author Info

  • Schiff, Maurice
  • Valdes, Alberto

Abstract

Based on an economy-wide perspective, this paper begins with a discussion of the bias against exports and agriculture that characterized the economic literature and the development strategies in many developing countries after World War II. This is followed by an analysis of how the macroeconomic environment affects agricultural structural price incentives. Specifically, the paper discusses how early policies concerning industrial protection, exchange rates, and interest rates and other fiscal policies can strongly influence the economic incentives for agriculture compared with other sectors, identifying the most relevant literature and alternative approaches used on this issue. It then proceeds to examine how the real exchange rate can be affected by exogenous shocks, such as the foreign terms of trade, with emphases on the Dutch Disease phenomenon and agriculture. The paper next examines the influence of interest rates on incentives in agriculture, arguing that, surprisingly, this has been a neglected area in the literature. The paper explores the effects on agriculture of structural adjustment programs implemented since the early 1980s in developing countries. The final section surveys the literature on agriculture and the macro-economy in industrial countries, focusing on the impact of the exchange rate on export competitiveness in the United States, the cost of agricultural protection for the overall economy in Europe and Japan, and the increased importance of fluctuations in money markets for the farm sector and the additional instability they generate

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1998/11/17/000178830_98111703530743/Rendered/PDF/multi_page.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1967.

as in new window
Length:
Date of creation: 31 Aug 1998
Date of revision:
Handle: RePEc:wbk:wbrwps:1967

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Environmental Economics&Policies; Markets and Market Access; Labor Policies; Agricultural Knowledge&Information Systems; Economic Theory&Research; Economic Theory&Research; Environmental Economics&Policies; Economic Stabilization; Access to Markets; Markets and Market Access;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. T. W.Swan, 1960. "Economic Control In A Dependent Economy," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 51-66, 03.
  2. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573.
  3. Ralph G. Lattimore & G. Edward Schuh, 1979. "Endogenous Policy Determination: the Case of the Brazilian Beef Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 27(2), pages 1-16, 07.
  4. W. E. G. Salter, 1959. "Internal And External Balance: The Role Op Price And Expenditure Effects," The Economic Record, The Economic Society of Australia, vol. 35(71), pages 226-238, 08.
  5. A. Valdés, 1994. "Agricultural Reforms In Chile And New Zealand: A Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 189-201.
  6. Dorosh, Paul & Valdés, Alberto, 1990. "Effects of exchange rate and trade policies on agriculture in Pakistan:," Research reports 84, International Food Policy Research Institute (IFPRI).
  7. Rausser, Gordon C. & Chalfant, James A. & Stamoulis, Kostas G, 1985. "Instability in agricultural markets : the U.S. experience," CUDARE Working Paper Series 359, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  8. Panagariya, Arvind & Schiff, Maurice, 1991. "Taxes versus quotas : the case of cocoa exports," Policy Research Working Paper Series 756, The World Bank.
  9. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  10. Kyle, Steven, 1992. "Pitfalls in the measurement of real exchange rate effects on agriculture," World Development, Elsevier, vol. 20(7), pages 1009-1019, July.
  11. Ghura, Dhaneshwar & Grennes, Thomas J., 1993. "The real exchange rate and macroeconomic performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 42(1), pages 155-174, October.
  12. Jagdish N. Bhagwati, 1978. "Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
  13. Amin, A.A., 1996. "The Effects of Exchange Rate Policy on Cameroon's Agricultural Competitiveness," Papers 42, African Economic Research Consortium.
  14. Martin, Will & Warr, Peter G, 1993. "Explaining the Relative Decline of Agriculture: A Supply-Side Analysis for Indonesia," World Bank Economic Review, World Bank Group, vol. 7(3), pages 381-401, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. David, Cristina C., 1999. "Constraints to Food Security: The Philippine Case," Discussion Papers DP 1999-31, Philippine Institute for Development Studies.
  2. World Bank, 2005. "Agriculture and Achieving the Millennium Development Goals," World Bank Other Operational Studies 8455, The World Bank.
  3. Bathla, Seema, 2011. "Resilience of Indian agriculture to external shocks: Analyzing through a structural econometric model," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 14, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  4. Shifa, Abdulaziz, 2011. "The Dual Policy in the Dual Economy - The Political Economy of Urban Bias in Dictatorial Regimes," Research Papers in Economics 2011:22, Stockholm University, Department of Economics.
  5. Bathla, Seema, 2012. "Volatility in Agriculture Commodity Prices in India: Impact and Macroeconomic and Sector-Specific Policy Responses," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122543, European Association of Agricultural Economists.
  6. Fynn, John & Haggblade, Steven, 2006. "Potential Impact of the Kwacha Appreciation and Proposed Tax Provisions of the 2006 Budget Act on Zambian Agriculture," Food Security Collaborative Working Papers 54475, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. David, Cristina C., 1997. "Agricultural policy and the WTO Agreement: The Philippine Case," Discussion Papers DP 1997-13, Philippine Institute for Development Studies.
  8. David, Cristina C., 1998. "Towards an Efficient Path to Food Security: The Philippine Case," Discussion Papers DP 1998-39, Philippine Institute for Development Studies.
  9. Gerpacio, Roberta V. & Pingali, Prabhu L., 2007. "Tropical and Subtropical Maize in Asia: Production Systems, Constraints, and Research Priorities," Maize Production Systems Papers 56107, CIMMYT: International Maize and Wheat Improvement Center.
  10. Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, 07.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1967. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.