Canzoneri, M. B, Cumby, R. E. and B. Diba (1999), “Relative Labor Productivity and the Real Exchange Rate in the Long-Run: Evidence for a Panel of OECD Countries”, Journal of International Economics, vol.47, p. 245–266.
Goldstein, M. and M. S. Khan (1985), “Income and Price Effects in Foreign Trade”, Handbook of International Economics, vol.II, Chapter 20.
Reif, T. (2004), “External Competitiveness and Export Performance in Tanzania”, in Tanzania: Selected Issues and Statistical Appendix, Country Report No. 04/284.
Wood, A. and K. Jordan (2000), “Why does Zimbabwe Export Manufactures and Uganda Not? Econometrics Meets History”, Journal of Development Studies, vol.37, Number 2.
Prepared by Sònia Muñoz (AFR).
The collapse of the commercial farming system also resulted in increased reliance on government-supplied inputs (seeds, fertilizers), which have often been delayed (See Chapter II on “Land Reform, Agricultural Policies, and Outcomes).
Such a formulation—where the supply of official exports is a function of both the real parallel and real official exchange rates—would be consistent with a model where the variable cost of supplying (or distributing to) the official and parallel markets differ (for a given good), but the same fixed factor is used in production. The (variable) cost of distribution are aimed to be measured by domestic prices (See Coorey (1990), p. 178).
Given the times series component of the data, dynamic heterogeneous cointegrated panel data models—which allow for heterogeneity in parameters and dynamics across exports to the different countries—were also estimated. The variables were found weakly integrated of order 1 and formed a cointegrating vector.
Lower ratings are given to countries where racial and nationality tensions are high because opposing groups are intolerant and unwilling to compromise. Higher ratings are given to countries where tensions are minimal, even though such differences may still exist.