Cash Crop Production and the Balance of Trade in a Less Developed Economy: A Model of Temporary Equilibrium with Rationing

Tessa A van der Willigen

Oxford Economic Papers, 1986, vol. 38, issue 3, 424-42

Abstract: This paper investigates a model of temporary equilibrium with rationing for a l ess developed economy (e.g., Tanzania) suffering balance-of-payments problems as a result of declining cash crop production. The model consists of an agricultur al sector producing cash and subsistence crops, an industrial sector, and a fore ign trade sector. It shows that declining cash crop production may be dueprimar ily to rationing of industrial goods and that increasing the producer price of t he cash crop-whether relative to the subsistance crop or the general price level -may have perverse effects. Copyright 1986 by Royal Economic Society.

Date: 1986
References: Add references at CitEc
Citations:

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819861 ... 0.CO%3B2-F&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:38:y:1986:i:3:p:424-42

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().