Effects of Exchange Rate and Trade Policies on Agriculture in Pakistan

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Intl Food Policy Res Inst, Jan 1, 1990 - Business & Economics - 114 pages
Trade policy in Pakistan; Effective exhcange rates for imports and exports; The real exchange rate; Modeling the ral of changes in price changes.
 

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Page 20 - J. Stern, Tariff Protection, Import Substitution and Investment Efficiency', Pakistan Development Review (summer 1965).
Page 44 - Direct Effects on Output Prices: Nominal Rates of Protection Agricultural trade and price policies (including trade taxes, quotas, government monopolies on trade, and marketing and processing subsidies) have a direct effect on output prices. Nominal rates of protection measure these direct effects on output prices by comparing actual domestic prices with free-trade prices that would prevail in the absence of government intervention.
Page 45 - Valdes (1986) has argued, however, long-term investments in agriculture are a function of the relative prices of agricultural to nonagricultural goods (the domestic terms of trade of agriculture).
Page 45 - However, exchange rates as well as trade policies affect border prices and the opportunity costs of production and consumption. In order to capture the indirect effects of misalignment of the exchange rate, the indirect effects of trade on nonagriculture and of exchange rate policies on farm prices can be measured as...
Page 87 - SR Lewis, Pakistan: Industrialization and Trade Policies (London: Oxford University Press. 1970), Table 4.16.
Page 83 - ... investments in infrastructure and the gradual development of trading contacts to establish new markets. CONCLUSIONS Indirect effects of exchange rate policies have been a major factor in determining the overall effects of government policy interventions on agricultural price incentives. Trade policies designed to protect industrial sectors led to an appreciation of the real exchange rate of about 22 percent in the 1 960s and about 1 0 percent in the mid- 1 970s. Despite the adoption of a managed...
Page 13 - Valdes to Pakistan, and their work provides a valuable foundation for the empirical analysis.
Page 9 - ... (1986b). PAUL DOROSH Effects of Exchange Rate and Trade Policies on Agricultural Prices in Pakistan Agricultural price policies play an important role in determining prices, but a sectoral policy focus can miss important linkages between economywide policies (trade and macroeconomic policies) and the agricultural sector. By changing the relative prices of importables, exportables, and home goods, trade and exchange rate policies can have a profound indirect effect on agriculture. This link is...
Page 24 - In order to take into account the effects of binding quantitative restrictions, however, the implicit import tariff or export tax, calculated from the ratio of domestic to world prices of the import goods, is a more accurate measure of the direct effect of trade policies.
Page 45 - Valdes (1986), long-term investments in agriculture are a function of the relative prices of agricultural to nonagricultural goods (the domestic terms of trade of agriculture).18 Thus the ratio of the output price of a commodity to the price of nonagricultural goods is the appropriate measure of the incentives. And because trade and exchange rate policies affect the prices of nonagricultural goods as well as agricultural goods, the total effect (direct plus indirect) of policy on agricultural relative...

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