Bibliographical Note to Chapter 5

An introduction to the impact of macroeconomic policy on food systems in developing countries is provided in C. Peter Timmer, Walter P. Falcon, and Scott R. Pearson, Food Policy Analysis (Baltimore: Johns Hopkins University Press, 1983), pp. 215-59. A detailed discussion of public finance issues, covering the development of public sector budgets and the alternative means to finance the budget, is contained in Richard Goode, Government Finance in Developing Countries (Washington, D.C.: Brookings Institution, 1984). Works that focus on revenue generation include Stephen R. Lewis, Jr., Taxation for Development (New York: Oxford University Press, 1984), and John F. Due, Indirect Taxation in Developing Economies (Baltimore: Johns Hopkins University Press, 1974). Agricultural taxation issues receive detailed discussion in Richard M. Bird, Taxing Agricultural Land in Developing Countries (Cambridge: Harvard University Press, 1974).

An introduction to the issues of exchange-rate determination and policy is provided in Anne O. Krueger, Exchange Rate Determination (Cambridge: Cambridge University Press, 1983), a paperback volume in the Cambridge Surveys of Economic Literature series. Further exposition at the intermediate textbook level is contained in pts. 4 and 5 of Richard E. Caves and Ronald W. Jones, World Trade and Payments: An Introduction (Boston: Little, Brown, 1984), pp. 277-541. Those wishing to delve more deeply into specific aspects of exchange-rate economics are referred to Ronald W. Jones and Peter B. Kenen, eds., Handbook of International Economics (Amsterdam: North-Holland, 1984), vol. 2, for extensive surveys and complete listings of citations.

The Australian model of exchange-rate adjustment, which focuses on the distinction between traded and nontraded goods and stresses the need to use the two policies of devaluation and deflation to achieve the two targets of external balance and internal balance, is described concisely in W. M. Corden, Inflation, Exchange Rates, and the World Economy_, 3d ed. (Chicago: University of Chicago Press, 1986), especially pp. 7-33. That analysis is extended to the role of exchange-rate adjustment in economies with rapidly increasing export earnings in Corden, "Booming Sector and Dutch Disease Economies: Survey and Consolidation," Oxford Economic Papers 35 (November 1984): 359-80. This topic is treated from the viewpoint of a developing country with a large agricultural sector in Corden and P. G. Warr, "The Petroleum Boom and Exchange Rate Policy in Indonesia: A Theoretical Analysis," Economics and Finance in Indonesia 29 (September 1981): 335-59.

Empirical evidence on the relationship between exchange rates and inflation is analyzed in Ronald 1. McKinnon, Money in International Exchange: The Convertible Currency System (New York: Oxford University Press, 1979). A seminal article that investigates the links between exchange-rate policy and the agricultural sector is G. Edward Schuh, "The Exchange Rate and U.S. Agriculture," American Journal of Agricultural Economics 56 (February 1974): 1-13.

Two theoretical essays by W. M. Corden that lay out the central issues of protection afforded by exchange-rate policy and by commodity-specific policy are "Exchange Rate Protection," pp. 271-87, and "Protection and the Real Exchange Rate," pp. 302-310, in Corden, Protection, Growth and Trade:Essays in International Economics (Oxford: Basil Blackwell, 1985). A useful analysis of the combined impact of exchange-rate and commodity price policies on agricultural production and trade is found in the World Bank's World Development Report_, 1986 (New York: Oxford University Press, 1985), pp. 61-168; the report also has a detailed list of references. Many empirical studies of the relationships between the macroeconomic policies, especially exchange-rate policies, and the economic performance of developing countries have been carried out, notably by research teams led by Bela Balassa, Jagdish Bhagwati, and Anne Krueger. The work done in the 1970s was reviewed and synthesized in Ronald 1. McKinnon, "Foreign Trade Regimes and Economic Development: A Review Article," Journal o f International Economics 9 (August 1979): 429-52.