Macroeconomic Policies in Jordan: Implications for Horticultural Exports

摘要

Until the mid-1980s, Jordan had enjoyed a long period of relative macroeconomic stability, together with high growth in real incomes and exports. This was due in part to prudent domestic policies. Since 1986, external and internal circumstances have changed very rapidly for Jordan. A fundamental hypothesis that is explored in the study is that macroeconomic policies constitute a very important part of the incentive structure facing agents involved in the production and marketing of fruits and vegetables. The objectives of the study are to: (1) document the recent performance of agricultural exports; (2) link this performance to the real exchange rate, which is a measure that reflects the overall effects of macroeconomic policies; and (3) investigate some of the determinants of the real exchange rate.