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

Author

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  • Lopez, Ramon
  • Ali, Ridwan
  • Larsen, Bjorn

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.

Suggested Citation

  • 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.
    • Handle: RePEc:wbk:wbrwps:719
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    References listed on IDEAS

    as
    1. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
    2. Balassa, Bela, 1988. "Incentive policies and agricultural performance in sub-Saharan Africa," Policy Research Working Paper Series 77, The World Bank.
    3. Lele, Uma, 1989. "Sources of Growth in East African Agriculture," The World Bank Economic Review, World Bank, vol. 3(1), pages 119-144, January.
    4. Antle, John M, 1983. "Infrastructure and Aggregate Agricultural Productivity: International Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 609-619, April.
    5. Jaeger, William & Humphreys, Charles, 1988. "The Effect of Policy Reforms on Agricultural Incentives In Sub-Saharan Africa," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270395, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Mundlak, Yair & Cavallo, Domingo & Domenech, Roberto, 1990. "Effects of Macroeconomic Policies on Sectoral Prices," The World Bank Economic Review, World Bank, vol. 4(1), pages 55-79, January.
    7. William Jaeger & Charles Humphreys, 1988. "The Effect of Policy Reforms on Agricultural Incentives in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(5), pages 1036-1043.
    8. Mundlak, Yair, 1985. "The Aggregate Agricultural Supply," Working Papers 232646, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
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    Cited by:

    1. Mamingi, Nlandu, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, Blackwell, vol. 16(1), pages 17-34, March.

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