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Trade, exchange rate, and agricultural pricing policies in Argentina, Volume 1
Author:Sturzenegger, Adolofo; Otrera, Wylian; Mosquera, Beatriz; Country:Argentina;
Date Stored:2002/09/12Document Date:1990/05/31
Document Type:PublicationSubTopics:Environmental Economics & Policies; Economic Theory & Research; Crops and Crop Management Systems; Banks & Banking Reform; Agricultural Knowledge and Information Systems
ISBN:ISBN 0-8213-1568-4Language:English
Major Sector:Agriculture, fishing, and forestryRegion:Latin America & Caribbean
Report Number:8722Sub Sectors:(Historic)Other agriculture
Collection Title:World Bank comparative studies -- the political economy of agricultural pricing policyVolume No:1

Summary: From the twentieth century until World War II, Argentina was a leading exporter of agricultural goods. In the early 1980s, agriculture accounted for roughly 57 percent of the country's total exports. During the period covered by this study (1961 to 1985), Argentina's trade policy, which was carried out through export taxes on the main agricultural and agroindustrial products and through industrial protection, was designed to discriminate against most exports vis-a-vis imports. This study examines the impact of trade and exchange rate policies on wheat, corn, sorghum, soybeans, sunflower seeds and beef production. One of its prinicipal findings is that direct price intervention substantially reduced producer prices and that industrial protection policies and overvaluation of the real exchange rate taxed agriculture even more than direct interventions. The study also explores the political factors underlying the establishment of policies that had these negative effects. The main conclusion is that external events, such as the Great Depression and World War II led to a fall in export prices and to higher import prices. Policies were established in the post war period to maintain the protection to import-substitutes and the taxation of agriculture. Export taxes were seen as a way of keeping domestic food prices low and of improving fiscal equilibrium by producing larger tax revenues.

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