Macroeconomic policies in Jordan : implications for horticultural exports

This report explores this hypothesis by documenting recent performance in fruit and vegetable exports, linking this performance to the real exchange rate and domestic price behavior, and investigating some of the determinants of the real exchange rate. Chapter 2 highlights salient macroeconomic trends, while Chapter 3 focuses on the foreign trade sector in general and horticultural e exports in particular. Various measures of the real exchange rate are derived in Chapter 4, and these form a key element in examining Jordan"s ability to compete in export markets (Chapter 5). The report concludes with a preliminary analysis of the major determinants of the real exchange rate, a key measure of the overall effects of macroeconomic policies (Chapter 6). Particular attention is given to the effect of grants, loans, and remittances from the Gulf States on the flow of foreign exchange and the price of the Jordanian dinar. (Author abstract, modified)