Structural adjustment, real exchange rates and project appraisal

In: Journal of international development: the journal of the Development Studies Association, Band 6, Heft 1, S. 7-17

Abstract

AbstractThe conventional procedure in economic project appraisal is to assume constant relative prices. It is well known, however, that a central objective of structural adjustment programmes is to alter key relative prices, and in particular the real exchange rate. The paper explores some of the implications of this relative price shift for the estimation of shadow prices.