Real overvaluation, terms of trade shocks, and the cost to agriculture in sub-Saharan Africa
Starting from the premise that agriculture should be pivotal in the structural transformation and economic development of sub - Saharan Africa, the author addresses two related issues. First, the extent to which policy induced distortions influence the structure of incentives for agriculture (with direct distortions induced by policies aimed directly at agriculture distinguished from indirect policies aimed at the economy's macroeconomic management). The second issue is how these distortions affect agriculture's growth, given other growth fundamentals. Preliminary analysis of evidence in sub - Saharan Africa links the observed declines in agriculture and the general worsening of economic conditions to economic distortions. A more rigorous analysis, using data from the Sudan, an African country with a sizable agricultural economy, strongly supports the predictions of an endogenous growth model, which states the deleterious effects of economic distortions on growth.
|Date of creation:||31 Jan 1992|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
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.:
- Cochrane, John H, 1988. "How Big Is the Random Walk in GNP?," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 893-920, October.
- Lizondo, Jose Saul, 1989. "Overvalued and undervalued exchange rates in an equilibrium optimizing model," Policy Research Working Paper Series 223, The World Bank.
- Ghura, Dhaneshwar & Grennes, Thomas J., 1991. "The Impact of Real Exchange Rate Misalignment and Instability on Macroeconomic Performance in Sub-Saharan Africa," Working Papers 51146, International Agricultural Trade Research Consortium.
- Tshibaka, Tshikala B., 1986. "The effects of trade and exchange rate policies on agriculture in Zaire:," Research reports 56, International Food Policy Research Institute (IFPRI).
- Cuddington, John T. & Urzua, Carlos M., 1989. "Trends and cycles in Colombia's real GDP and fiscal deficit," Journal of Development Economics, Elsevier, vol. 30(2), pages 325-343, April.
- Valdes, Alberto, 1985. "Exchange Rates and Trade Policy: Help or Hindrance to Agricultural Growth?," 1985 Conference, August 26-September 4, 1985, Málaga, Spain 182623, International Association of Agricultural Economists.
- Elbadawi, I.A., 1989. "Terms Of Trade, Commercial Policy, And The Black Market For Foreign Exchange: An Empirical Model Of Real Exchange Rate Determination," Papers 570, Yale - Economic Growth Center.
- Engle, Robert & Granger, Clive, 2015.
"Co-integration and error correction: Representation, estimation, and testing,"
Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Cuddington, John T. & Winters, L. Alan, 1987. "The Beveridge-Nelson decomposition of economic time series : A quick computational method," Journal of Monetary Economics, Elsevier, vol. 19(1), pages 125-127, January.
- J. Peter Neary, 1987.
"Determinants of the equilibrium real exchange rate,"
198748, School of Economics, University College Dublin.
- Neary, Peter, 1988. "Determinants of the Equilibrium Real Exchange Rate," American Economic Review, American Economic Association, vol. 78(1), pages 210-15, March.
- Neary, J Peter, 1987. "Determinants of the Equilibrium Real Exchange Rate," CEPR Discussion Papers 209, C.E.P.R. Discussion Papers.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:831. 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 references are entirely missing, you can add them using this form.