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

Ramon Lopez, Ridwan Ali and Bjorn Larsen

No 719, Policy Research Working Paper Series from The World Bank

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.

Keywords: Environmental Economics&Policies; Economic Theory&Research; Markets and Market Access; Access to Markets; Agricultural Knowledge&Information Systems (search for similar items in EconPapers)
Date: 1991-07-31
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Citations: View citations in EconPapers (1)

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