THE IMPACT OF DEVALUATION ON U.S. AGRICULTURAL EXPORTS

The 1971 and 1973 official devaluations of the U.S. dollar have often been cited as a pivotal cause for the enormous price rises in agricultural products in 1972 and 1973. This article presents two studies that test the hypothesis that exchange rate changes have a significant effect on the demand for U.S. agricultural exports. The first is a cross-sectional study of the demand for U.S. agricultural exports by major U.S. trading partners in 1971-73. The second looks at the exchange rate changes of other countries and their demand for five agricultural commodities imported from the United States as well as the world during 1954-69. Both studies support the thesis that the special circumstances present in the agricultural sector negate the effects of exchange rate changes on the demand for U.S. agricultural exports.


Issue Date:
1976-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/147720
Published in:
Agricultural Economics Research, Volume 28, Number 3
Page range:
107-116
Total Pages:
10




 Record created 2017-04-01, last modified 2017-04-24

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