Incentive policies and agricultural performance in sub-Saharan Africa

Bela Balassa

No 77, Policy Research Working Paper Series from The World Bank

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.

Keywords: Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Export Competitiveness; Environmental Economics&Policies; Access to Markets (search for similar items in EconPapers)
Date: 1988-08-31
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Citations: View citations in EconPapers (9)

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