Import Prices and Hard Currency Constraints in Eastern Europe: Implications for Coarse Grain Imports and Production of Meat

The objectives of this study were (a) to determine the degree to which hard currency earnings constrained overall-imports and coarse grain imports in command economies; (b) to measure the importance of import prices on grain imports and to trace the link of grain availability to meat production; and (c) to determine how economic and political reforms in the selected countries may have affected the hard currency constraint, the importance of import prices, and grain imports and meat production. The results indicate that import demand was constrained by earnings of hard currency, but was not responsive to world prices, and meat production was affected by total grain availability, including imports.

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