This article examines several hypotheses related to influences on the supply of agricultural export products in developing countries. First, it considers the hypothesis that a scarcity of consumer incentive goods so reduces the elasticity of supply to real prices that it becomes negative. Next, it analyses various effects of real price instability on supply, effects that vary according to the availability of consumer goods. Finally, it considers the indirect influence of stabilization schemes on supply, through their effect on the average level of producer prices. The various hypotheses are then tested for the case of coffee supply in Madagascar during the period 1965-84.
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