Response to relative price changes in Cote d'Ivoire: implications for export subsidies and devaluations

V. Lavy, J. L. Newman, R. Salomon, P. De Vreyer

Research output: Contribution to journalArticlepeer-review

Abstract

The paper models the short-run response of firms to exogenous changes in export and import prices, taking into account the possibility that firms may sell to both domestic and foreign markets. In such a framework, firms may alter sales in response to the relative profitability of the two markets. The net output response depends on the response in both markets. The main and somewhat comprising result is that manufacturing producers in Cote d'Ivoire are able to expand their exports in the short run in response to an increase in export prices. However, most of this expansion comes at the expense of sales in the domestic market. -from Authors

Original languageEnglish
Pages (from-to)182-197
Number of pages16
JournalUnknown Journal
StatePublished - 1992

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