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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
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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

Information

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

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