Economic Incentives and Agricultural Exports in Developing Countries

  • Bela Balassa


This essay will examine the effects of economic incentives on exports in general, and on agricultural exports in particular, in the developing countries. Section I will introduce a simple econometric model to estimate the effects of price incentives on exports. In Section II, the model will be applied to the exports of goods and nonfactor services and to merchandise exports. In Section III, the same model will be used to indicate the effects of price incentives on agricultural exports. Sections IV, V, and VI will present information on the responsiveness of merchandise and agricultural exports to incentives in the 1960–73, 1973–8, and 1978–81 periods, respectively, by making use of intercountry comparisons.


Real Exchange Rate Export Performance Nontraded Good Manufacture Export Agricultural Export 
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  1. 2.
    On alternative concepts of the real exchange rate, see B. Balassa, ‘Effects of Exchange Rate Changes in Developing Countries’, Indian Journal of Economics LVIII (1987) pp. 203–22.Google Scholar
  2. 7.
    The discussion draws on B. Balassa and Associates, Development Strategies in Semi-Industrial Economies (Baltimore, Md.: The Johns Hopkins University Press, 1982) Ch. 3.Google Scholar
  3. 9.
    The discussion draws on the material presented in B. Balassa, ‘Adjustment to External Shocks in Developing Countries,’ B. Csikós-Nagy, D. Hague and G. Hill (eds), The Economics of Relative Prices (London: Macmillan, 1984) pp. 352–84 (cited as 1984a) and B. Balassa, ‘Adjustment Policies in Developing Countries: A Reassessment,’ World Development XII (1984) pp. 955–72 — the latter paper also describes the scheme of classification utilized in this essay.Google Scholar
  4. 13.
    B. Balassa, E. Voloudakis, P. Fylaktos, and S.T. Suh, ‘Export Incentives and Export Growth in Developing Countries: An Econometric Investigation,’ Development Research Department Discussion Paper No. 159 (Washington, D.C.: World Bank, 1985).Google Scholar

Copyright information

© Bela Balassa 1989

Authors and Affiliations

  • Bela Balassa
    • 1
    • 2
  1. 1.The Johns Hopkins UniversityUSA
  2. 2.The World BankUSA

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