Abstract
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.
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Notes
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.
The discussion draws on B. Balassa and Associates, Development Strategies in Semi-Industrial Economies (Baltimore, Md.: The Johns Hopkins University Press, 1982) Ch. 3.
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.
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).
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© 1989 Bela Balassa
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Balassa, B. (1989). Economic Incentives and Agricultural Exports in Developing Countries. In: New Directions in the World Economy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10588-5_7
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DOI: https://doi.org/10.1007/978-1-349-10588-5_7
Publisher Name: Palgrave Macmillan, London
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