Study of Exchange Rate Disequilibrium Effect on Export Supply of Agricultural Products.

Abstract

Study of the variables which explain real exchange rate fluctuations
and real exchange rate deviation from its long-run equilibrium path,
indicates that these variables have negative effects on the supply of
agricultural products, for export. Therefore,it seems that any attempt on
stabilizing real exchang rate and bringing it closer to its equilibrium rate
can be favorable in the expansion of export market for agricultural
products.
In this article, Islam & Subramanian model (1989)1 has been used to
study the behavior of agricultural goods export in a quantitative, context.
For calculating real exchange rate deviation variable from its long -run