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Multi-Market Effects of Exchange Rate Adjustment on Agriculture : The Case of the Philippines

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  • Carlos C. Bautista

Abstract

This paper presents an analysis of the impact of a devaluation of the Philippine agricultural markets using a multi-market model. The modeling technique is described and distinguished from partial and general equilibrium methods of analysis. The simulation results show that agricultural markets respond to a devaluation depending on their trade orientation and their linkages with each other. It is also shown that rural real incomes improve with a devaluation because of the income generation effects of price changes and rising export earnings. A more favorable result is obtained when devaluation is accompanied by a fertilizer subsidy.

Suggested Citation

  • Carlos C. Bautista, 1991. "Multi-Market Effects of Exchange Rate Adjustment on Agriculture : The Case of the Philippines," UP School of Economics Discussion Papers 199116, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:199116
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