| 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 exchange 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) 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
equilibrium path Cottani & Cavallo & Khan model (1990) is employed, and Pree & Stienher model (1989) has been used for calculation of the
real exchange rate unstability index. The results, indicate negative effects of
real exchange rate deviation from its long-run equilibrium path, and real exchang rate fluctuations on the supply of agricultural products. It is also indicated that the relative price of agricultural exportable products, and
sudden changes in the supply of agricultural products, as well as, technical improvements all are dignificaut factors in the expansion of export market
for these products.
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