The Effects of Trade and Exchange Rate Policies on Agriculture in Nigeria, Volumes 55-64

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Intl Food Policy Res Inst, 1986 - Social Science - 61 pages
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Page 13 - Bruce F Johnston and John W. Mellor, "The Role of Agriculture in Economic Development," American Economic Review 51, no.
Page 60 - Ogunfowora, O. (1972). Conceptualizing increased resource demand and product supply inducing policies in peasant agriculture, Nigerian Journal of Economic and Social Studies, 14(2) 191 Ogunfowora.
Page 42 - ... falling relative to the prices of nontradables. On the other hand, an increase means that the price ratio improves in favor of tradable goods. If the reasonable assumption is made that intersectoral resource flows are sensitive to relative price changes, it is clear that changes in the real exchange rate would tend to affect intersectoral profitability, which would induce movement of resources between different sectors of the economy. More specifically, a reduction in the real exchange rate would...
Page 42 - A fall in the real exchange rate implies that the prices of tradables are falling relative to the prices of nontradables. On the other hand, an increase means that the price ratio improves in favor of tradable goods. If the reasonable assumption is made that intersectoral resource flows are sensitive to relative price changes, it is clear that changes in the real exchange rate would tend to affect intersectoral profitability, which would induce movement of resources between different sectors of the...
Page 45 - ... by the full amount of the tariff. It has also risen relative to the price of home goods but by less than the full amount of the tariff. Finally, the price of exportables has declined relative to both other prices. In other words: only a part of the tariff turns out to be of advantage for the import substitution sector, the rest is shifted to the producers of exportables as an implicit tax. The extent of the shift...
Page 43 - ... rate policies impinge on agriculture. Changes in the real exchange rate play a critical role in the profitability of both export-oriented and import-competing agriculture. The approach enables one to focus on the real exchange rate as a strategic variable that could be used to analyze policy issues. In general, a decline of the real exchange rate is a signal that the terms of trade have worsened against the tradable goods sector and that resources are being diverted to the nontradable goods sector....
Page 44 - The world prices of the importable; and exportables are exogenously given. The domestic nominal prices of the tradable goods are determined by their foreign prices, the nominal exchange rate, import duties, and export taxes or subsidies. The domestic nomianl prices of nontraded goods are determined by domestic demand and supply factors, which are, in turn, influenced by trade and exchange rate policies through the tradable goods market. Given the overriding importance of raw silk and silk fabrics...
Page 25 - On the import side, trade policy in Nigeria has traditionally protected local manufacturing industries by imposing relatively high import duties on finished products and very low or no import duties on industrial raw materials and intermediate capital inputs.
Page 38 - Patterns of Industrial Growth', American Economic Review, September 1960, Vol.
Page 36 - An increase in the general price level that is not matched by an equivalent devaluation would generate a real appreciation of the domestic currency. This appreciation would, in turn, squeeze profitability out of the tradable goods (both importables and exportables) sectors of the economy.

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