El Salvador : an assessment of the impact of recent policy changes on agriculture

This study identifies the policy changes enacted since June 1989 that have affected the agricultural sector, quantifies their impact when possible, and identifies the remaining policies and distortions that constrain the promise of Salvadoran agriculture. The variables studied include value added, production, prices, credit allocation to agriculture, labor use, agricultural trade, and sources of growth. Some of the study"s conclusions are as follows. (1) Macroeconomic policy has been well conducted. (2) Export performance has been good except for coffee imports. (3) Imports are also growing rapidly. (4) Agricultural credit delivery is in disarray. (5) Agricultural output and investments have both increased, as has labor demand in agriculture; the main source of growth in output has been productivity gains rather than area expansion. The paper concludes with recommendations. (Author abstract, modified)