Exchange rate devaluation and the contribution of agriculture to the current account: the case of Kenya
1995
Herrmann, R. (Giessen Univ. (Germany). Inst. fuer Agrarpolitik und Marktforschung) | Ommeh, H.
The paper discusses the effect of domestic currency devaluation on agriculture's contribution to the current account in a developing contry. The problem is illustrated by the foreign agricultural trade balance of Kenya. As a result it impacts the current account. That depends on several crucial structural facters in the economy, such as the degree of overevaluation of the domestic currency, exchange rate elasticities of export supply and import demand, the share of agriculture in the current account and whether business is made in domestic or foreign currency.
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