How trade and economic policies affect agriculture : a framework for analysis applied to Tanzania and Malawi

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How trade and economic policies affect agriculture : a framework for analysis applied to Tanzania and Malawi

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Lopez, Ramon
Ali, Ridwan
Larsen, Bjorn

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Ramon Lopez

Abstract

The authors provide a general equilibrium model for analyzing the mechanisms by which macroeconomic, trade, price, and exchange rate policies affect agricultural export sectors. They estimate the model empirically for Tanzania and Malawi to measure the supply responses of agricultural exportables. They find that: agricultural exports are highly responsive to price incentives; the most effective policy instruments for promoting the expansion of agricultural exports are direct export incentives and devaluation of the exchange rate; and fiscal policies are not neutral with respect to the structure of agricultural production.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 719.

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Date of creation: 31 Jul 1991
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Handle: RePEc:wbk:wbrwps:719

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References listed on IDEAS
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Antle, John M, 1983. "Infrastructure and Aggregate Agricultural Productivity: International Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 609-19, April.
Mundlak, Yair & Cavallo, Domingo & Domenech, Roberto, 1990. "Effects of Macroeconomic Policies on Sectoral Prices," World Bank Economic Review, Oxford University Press, vol. 4(1), pages 55-79, January.
Balassa, Bela, 1988. "Incentive policies and agricultural performance in sub-Saharan Africa," Policy Research Working Paper Series 77, The World Bank. [Downloadable!]
Lele, Uma, 1989. "Sources of Growth in East African Agriculture," World Bank Economic Review, Oxford University Press, vol. 3(1), pages 119-44, January.
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, Oxford University Press, vol. 2(3), pages 255-71, September.

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