A Survey on the Share of Terms of Trade Changes on the Exchange Rate Uncertainty in Iran's Economy
The terms of trade is one of the important tools for the macro-economic analysis and the most principle issue in this analysis is a dual relationship between the terms of trade and the exchange rate. The changes in the relative prices are the consequent of the fluctuations in the terms of trade an...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2007-12-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Online Access: | https://joer.atu.ac.ir/article_2917_b5e6399cb9a54b6d7875d04bc42d115b.pdf |
| _version_ | 1797375712034816000 |
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| author | Mahdi Taghavi Azadmehr Kahram Parvaneh Salatin |
| author_facet | Mahdi Taghavi Azadmehr Kahram Parvaneh Salatin |
| author_sort | Mahdi Taghavi |
| collection | DOAJ |
| description | The terms of trade is one of the important tools for the macro-economic analysis and the most principle issue in this analysis is a dual relationship between the terms of trade and the exchange rate. The changes in the relative prices are the consequent of the fluctuations in the terms of trade and exchange rate.
This paper focuses on the short-run and long-run effects of the terms of trade on the exchange rate in Iran's economy during 1959-2004,by using the:ARDL(Auto-Regressive Distributed Lag Model),VECM(Vector Error Correction Model)and the impulse response function of VAR(Vector Auto-Regressive).
The results show that although there is a relationship between the terms of trade and exchange rate but the impact of the terms of trade shocks on the exchange rate fluctuation is petty and the main changes of exchange rate in Iran is the consequent of itself.GDP has a positive effec
on the terms of trade improvement and congruently the terms of trade improvement reduces inflation. The other result signifies that the terms of trade has a negative effect on the economic growth. This is the consequent of adoption of wrong economic –commercial policy. |
| first_indexed | 2024-03-08T19:28:24Z |
| format | Article |
| id | doaj.art-49044cece32d4e4d8345da68ac8c33a8 |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:28:24Z |
| publishDate | 2007-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-49044cece32d4e4d8345da68ac8c33a82023-12-26T07:56:19ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532007-12-0172715502917A Survey on the Share of Terms of Trade Changes on the Exchange Rate Uncertainty in Iran's EconomyMahdi Taghavi0Azadmehr Kahram1Parvaneh Salatin2عضو هیأت علمی دانشکده اقتصاد دانشگاه علامه طباطبائیکارشناس ارشد اقتصاد- دانشگاه علامه طباطبائیدانشجوی دکتری دانشگاه آزاد اسلامی- واحد علوم و تحقیقاتThe terms of trade is one of the important tools for the macro-economic analysis and the most principle issue in this analysis is a dual relationship between the terms of trade and the exchange rate. The changes in the relative prices are the consequent of the fluctuations in the terms of trade and exchange rate. This paper focuses on the short-run and long-run effects of the terms of trade on the exchange rate in Iran's economy during 1959-2004,by using the:ARDL(Auto-Regressive Distributed Lag Model),VECM(Vector Error Correction Model)and the impulse response function of VAR(Vector Auto-Regressive). The results show that although there is a relationship between the terms of trade and exchange rate but the impact of the terms of trade shocks on the exchange rate fluctuation is petty and the main changes of exchange rate in Iran is the consequent of itself.GDP has a positive effec on the terms of trade improvement and congruently the terms of trade improvement reduces inflation. The other result signifies that the terms of trade has a negative effect on the economic growth. This is the consequent of adoption of wrong economic –commercial policy.https://joer.atu.ac.ir/article_2917_b5e6399cb9a54b6d7875d04bc42d115b.pdf |
| spellingShingle | Mahdi Taghavi Azadmehr Kahram Parvaneh Salatin A Survey on the Share of Terms of Trade Changes on the Exchange Rate Uncertainty in Iran's Economy Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| title | A Survey on the Share of Terms of Trade Changes on the
Exchange Rate Uncertainty in Iran's Economy |
| title_full | A Survey on the Share of Terms of Trade Changes on the
Exchange Rate Uncertainty in Iran's Economy |
| title_fullStr | A Survey on the Share of Terms of Trade Changes on the
Exchange Rate Uncertainty in Iran's Economy |
| title_full_unstemmed | A Survey on the Share of Terms of Trade Changes on the
Exchange Rate Uncertainty in Iran's Economy |
| title_short | A Survey on the Share of Terms of Trade Changes on the
Exchange Rate Uncertainty in Iran's Economy |
| title_sort | survey on the share of terms of trade changes on the exchange rate uncertainty in iran s economy |
| url | https://joer.atu.ac.ir/article_2917_b5e6399cb9a54b6d7875d04bc42d115b.pdf |
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