Nov 10, 2010

The export premium

One reason why exports are a successful development strategy is that products reach higher prices aboard than in developing countries, i.e. there is an export premium. At the Andasibe national park in Madagascar, locals pay 1000 Ariary to visit, foreigners pay 25000 (€10). Hence, on one of its main exports, i.e. tourism, the export premium is of 2500%. A good development strategy indeed. If only the government would let tourism flourish…

2 comments:

Dany Jaimovich - Bakary Baludin said...

at least a fair way to adjust for PPP wages...

Anonymous said...

reminds me of a story that a Chinese mate of mine once told me about the pricing scheme at village markets in China.....there is the 'real price' for local villagers, then a higher price for ethnic chinese from a different village but the same province, another higher price for ethnic chinese from a different province over the other side of the country, then finally the tourist price, which is usually 300% or 400% of the original price!!

Cam