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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.

Suggested Citation

  • Balassa, Bela, 1988. "Incentive policies and agricultural performance in sub-Saharan Africa," Policy Research Working Paper Series 77, The World Bank.
    • Handle: RePEc:wbk:wbrwps:77
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    References listed on IDEAS

    as
    1. Lele, Uma, 1989. "Sources of Growth in East African Agriculture," The World Bank Economic Review, World Bank, vol. 3(1), pages 119-144, January.
    2. Jabara, Cathy L., 1985. "Agricultural pricing policy in Kenya," World Development, Elsevier, vol. 13(5), pages 611-626, May.
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    Cited by:

    1. Siddig A. Salih, 1994. "Sustainable Ecosystem in Africa: Managing Natural Forest in Sudan," WIDER Working Paper Series wp-1994-117, World Institute for Development Economic Research (UNU-WIDER).
    2. Weeks J., 1991. "Structural adjustment and rural labour markets in Sierra Leone," ILO Working Papers 992810213402676, International Labour Organization.
    3. 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.
    4. Markussen, Kristin A. & Lee, David R., 1994. "Structural Adjustment And Agricultural Export Response In Latin America," Working Papers 7268, Cornell University, Department of Applied Economics and Management.
    5. Lee, David R. & Markussen, Kristin A., 1997. "Structural Adjustment and Agricultural Export Response in Latin America," 1997 Occasional Paper Series No. 7 198200, International Association of Agricultural Economists.
    6. Alberto Valdés & Maurice Schiff, 1990. "Sobre la Relación entre Pobreza y Desnutrición: un Enfoque Conceptual al Nivel del Hogar," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 27(81), pages 139-150.
    7. repec:ilo:ilowps:281021 is not listed on IDEAS
    8. Schiff, Maurice & Valdes, Alberto, 1990. "The link between poverty and malnutrition : a household theoretic approach," Policy Research Working Paper Series 536, The World Bank.
    9. Jane Kiringai, 2006. "Trade Policy and Transport Costs in Kenya," Discussion Papers 06/11, University of Nottingham, CREDIT.

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