Hostname: page-component-586b7cd67f-tf8b9 Total loading time: 0 Render date: 2024-11-23T00:55:59.099Z Has data issue: false hasContentIssue false
  • English
  • Français

Stabilization Policies and Agricultural Impacts in Developing Countries: The Case of Bolivia

Published online by Cambridge University Press:  28 April 2015

Victor H. De la Barra ,
Mary A. Marchant  and
Aida C. Isinika
Victor H. De la Barra
Affiliation:
University of Kentuckyand is currently employed by the Bolivian government
Mary A. Marchant
Affiliation:
Department of Agricultural Economics, University of Kentucky
Aida C. Isinika
Affiliation:
Department of Agricultural Economics, University of Kentucky
Get access Rights & Permissions [Opens in a new window]

Abstract

This research examines the success of stabilization policies to control hyperinflation in Bolivia. Money demand functions for the hyperinflation and stabilization periods were econometrically estimated and statistically tested. We conclude that the demand for money in Bolivia changed after stabilization policies were implemented, indicating that the new government's objectives were met. Stabilization policies resulted in real economic growth for Bolivia's economy, including its agricultural sector, where agricultural export shares increased tenfold as stabilization policies corrected overvalued exchange rates.

Keywords

Boliviadeveloping countrieshyperinflationmoney demandstabilization policies
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 1 , July 1995 , pp. 184 - 196
Copyright
Copyright © Southern Agricultural Economics Association 1995

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Argandoña, A.La Teoria Monetaria Moderna. Editorial Barcelona, España. 1985.Google Scholar
Arize, A.C. “Past Inflation and the Stability for Money Function in Nigeria.” Atlantic Economic Journal. 15(1987):31–41CrossRefGoogle Scholar
Asilis, C. M., Honohan, P., and McNelis, D.. “Monetary Demand during Hyperinflation and Stabilization: Bolivia.” Economic Enquiry. 31(1993):262–273.CrossRefGoogle Scholar
Bagliano, F.C., and Favero, C.A.. “Money Demand Instability, Expectations and Policy Regimes: A Note on the Case of Italy 1964 - 1986.” Journal of Banking and Finance. 16(1992):331–349.CrossRefGoogle Scholar
Barron, J.M., Loewenstein, M.A., and Lynch, G.J.. Macroeconomics. Massachusetts: Addison-Wesley Pub. Co., 1989.Google Scholar
Becker, G.S.The Economic Approach to Human Behavior. Chicago: Chicago University Press, 1976.CrossRefGoogle Scholar
Branson, W. H.Macroeconomic: Theory and Policy. New York: Harper & Row Publishers, 1989.Google Scholar
CEPAL. Transformation Productiva con Equidad and CEP AL, Preliminary Overview., 1990, 1992.Google Scholar
Cagan, P. “The Monetary Dynamics of Hyperinflation,” in Studies in the Quantity of Money, ed. Friedman, M.. Chicago Press, 1956.Google Scholar
Caramezza, F., Hostland, D., and Polozo, S.. “The Demand for Money and the Monetary Policy Process in Canada.” Journal of Policy Modelling. 12(1990):387–426.CrossRefGoogle Scholar
Cesarano, F. “Demand for Money and Expected Inflation.” Applied Economics. 23(1991): 1649–1653.CrossRefGoogle Scholar
Chambers, R.G., and Just, R.E.. “An Investigation of the Effects of Monetary Factors on Agriculture.” Journal of Monetary Economics. 9(1982):235–247.CrossRefGoogle Scholar
Cuthbertson, K. and Taylor, M.P.. “Money Demand, Expectations and Forward-Looking Models.” Journal of Policy Modelling. 12(1990):289–325.CrossRefGoogle Scholar
Dawd, K. “The Value of Time and the Transaction Demand for Money.” Journal of Money, Credit and Banking. 22(1990):51–63.CrossRefGoogle Scholar
Deravi, M. K., Hegji, C.E., and Moberly, D.. “Government Debt and the Demand for Money: An Extreme Bound Analysis.” Economic Inquiry. (1990):390–391.CrossRefGoogle Scholar
Godoy, R. and De Franco, M.. “High Inflation and Bolivian Agriculture.” Journal of Latin American Studies. 24(1992):617–637.CrossRefGoogle Scholar
Gupta, K. L. and Moazzami, B.. “Nominal vs. Real Adjustment in Demand for Money Function.” Applied Economics. 22(1990):5–12CrossRefGoogle Scholar
Gupta, K. L. and Moazzami, B.. “Dynamic Specification and the Demand for Money Function.” Economic Letters. 27(1988):229–231.CrossRefGoogle Scholar
Hadwiger, D.F. “Who Creates Food Abundance? Agricultural Policy Decision Structures and Productivity in Developing Countries.” Food Policy. 17(1992):337–348.CrossRefGoogle Scholar
IDB. Economic and Social Progress in Latin America, 1990 Report.Google Scholar
IDB. Macroeconomic Policies: Economic and Social Progress in Latin America, 1987 Report.Google Scholar
Kelfala, M. K. “An Econometric Analysis of Money Demand in Ghana.” Journal of Developing Areas. 26(1992):475–488.Google Scholar
Klein, B. “The Demand for Quantity Adjusted Cash Balances: Price Uncertainty in the US Demand for Money Function.” Journal of Political Economy. (1977):691–715.CrossRefGoogle Scholar
Kmenta, J.Elements of Econometrics. New York: Macmillan Publishing Company, 1986.Google Scholar
McCalla, A.F. “Impact of Macroeconomic Policies upon Agricultural Trade and International Agricultural Development.” American Journal of Agricultural Economics. 64(1982):861–868.CrossRefGoogle Scholar
McCalla, A.F. and Josling, T.E.. Agricultural Policies and World Markets. New York: Macmillian Pub. Co., 1985.Google Scholar
Melvin, M. “The Dollarization of Latin America as a Market-Enforced Monetary Reform: Evidence and Implications.” Economic Development and Cultural Change. 60(1988):543–558.CrossRefGoogle Scholar
New Africa, April 1994.Google Scholar
Pastor, M. Jr. “Bolivia: Hyperinflation, Stabilization, and Beyond.” The Journal of Development Studies. 27( 1991):221–237Google Scholar
SAS Institute Inc. SAS User's Guide: Statistics, 6th ed. SAS Circle, Cary, NC, 1988.Google Scholar
Schuh, G. E. “The Exchange Rate and U.S. Agriculture.” American Journal of Agricultural Economics. 56(1974): 1–13.CrossRefGoogle Scholar
Serletis, A. “On the Demand for Money in the U.S.” Empirical Economics. 12(1987):249–255.CrossRefGoogle Scholar
UDAPE. Dossier of Statistical Information. UDAPE, La Paz-Bolivia, various years.Google Scholar
United Nations. Statistical Yearbook for Latin America and the Caribbean. Economic Commission for Latin America and the Caribbean, 1992.Google Scholar
U.S. Department of State. Background Notes: Bolivia. Bureau of Public Affairs, Sept. 1991.Google Scholar
World Bank. The Political Economy of Agricultural Pricing Policy series. A World Bank Comparative Study. Baltimore: John Hopkins University Press.Google Scholar
Krueger, A., Schiff, M., and Valdes, A. (eds.). Latin America. Vol. 1, 1991.Google Scholar
Krueger, A., Schiff, M., and Valdes, A. (eds.). Asia. Vol. 2, 1991.Google Scholar
Krueger, A., Schiff, M., and Valdes, A. (eds.). Africa and the Mediterranean. Vol. 3, 1991.Google Scholar
Schiff, M. and Valdes, A.. A Synthesis of the Economics in Developing Countries. Vol. 4, 1992.Google Scholar
Krueger, A.O.A Synthesis of the Political Economy in Developing Countries. Vol. 5, 1992.Google Scholar
Valdes, A. “The Macroeconomic Environment Necessary for Agricultural Trade and Price Policy Reforms.” Food Policy. 18(1993):272–282.CrossRefGoogle Scholar
Webb, A.J., Lopez, M., and Penn, R. (eds.). Estimates of Producer and Consumer Subsidy Equivalents: Government Intervention in Agriculture, 1982-87. Agriculture and Trade Analysis Division, Economic Research Service, U.S. Department of Agriculture Statistical Bulletin No. 803, April 1990.Google Scholar