EcoNontc RESPONSE TO DEVALUATION IN SELECTED DEVELOPING COUNTRIES

Shahla Shapouri and Nancy McKaig

No 277996, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: CDevaluations have been recommended as a means to strengthen the balance o'a- payments and improve the growth of commodity exports. The study of economic performance of 16 developing countries showed that adjustments in currency exchange-rate' policy improved their balance of payments. After devaluation, both exports and imports declined in most countries. The stronger rate of decline in imports contributed to substantial improvement in trade and current account deficits. The sharp decline in imports reduced domestic productivity so that the record of economic performance showed slower income growth in more than half of the countries. The predevaluation rates of inflation continued, or in some countries incread, because of slow income growth and higher prices of traded commodities.

Keywords: Agricultural and Food Policy; International Development (search for similar items in EconPapers)
Pages: 28
Date: 1987-12
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:277996

DOI: 10.22004/ag.econ.277996

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