Incentive policies and agricultural performance in sub-Saharan Africa

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Incentive policies and agricultural performance in sub-Saharan Africa

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Balassa, Bela

Abstract

Exports in general, and agricultural exports in particular, are more responsive to price incentives in Sub-Saharan Africa than in developing countries.. These are the results of an econometric investigation on the effects of real exchange rates on exports. It further appears that in Sub-Saharan Africa the impact of real exchange rates is greater on agricultural exports than on the exports of goods and services. Within Sub-Saharan Africa, market-oriented countries generally gained export market shares while interventionist countries lost shares. This occurred when market-oriented, not interventionist countries, maintained realistic exchange rates and did not bias incentives against exports. For example, Kenya and the Ivory Coast exemplify market-oriented, and Tanzania and Ghana interventionist, countries. Pairwise comparisons between the Ivory Coast and Ghana have indicated the superiority of the market-oriented approach in promoting exports and agricultural production.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 77.

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Date of creation: 31 Aug 1988
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Handle: RePEc:wbk:wbrwps:77

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References listed on IDEAS
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Jabara, Cathy L., 1985. "Agricultural pricing policy in Kenya," World Development, Elsevier, vol. 13(5), pages 611-626, May. [Downloadable!] (restricted)

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(explanations, 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.)

Lopez, Ramon & Ali, Ridwan & Larsen, Bjorn, 1991. "How trade and economic policies affect agriculture : a framework for analysis applied to Tanzania and Malawi," Policy Research Working Paper Series 719, The World Bank. [Downloadable!]
Jane Kiringai, . "Trade Policy and Transport Costs in Kenya," Discussion Papers 06/11, University of Nottingham, CREDIT. [Downloadable!]
Schiff, Maurice & Valdes, Alberto, 1990. "The link between poverty and malnutrition : a household theoretic approach," Policy Research Working Paper Series 536, The World Bank. [Downloadable!]

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