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Exchange Rate Effects On Bilateral Agricultural Trade Analysis On The Dr-Cafta, Jennifer Eileen Bocock

LSU Master's Theses

Economic theory states that the exchange rates influences movements in agricultural prices and are in an important determinant of the agricultural sector trade. This paper reviewed the theory and economic models under which exchange rate fluctuations create shifts in the excess supply and demand between countries in the international market along with a history of relations between the United States and the DR-CAFTA region. The theory is econometrically tested through the OLS method to examine to what extent the real exchange rates between the United States and less developed countries were constant with accepted theory. The agricultural trade movements were …