Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index
An appropriate solution to resolve trade deficit is national currency devaluation. This policy is, at least in the long term, useful. It is based on the logic that any devaluation of national currency in the form of market mechanism reduces the trade deficit. On the other hand the trade balance of c...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2014-06-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_473_cbd9094cb1b2b4047eb020cbb61e173b.pdf |
| _version_ | 1797375654704971776 |
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| author | Leila Torki Seyed Komail Tayebi Mehdi Yazdani Elham Fathi |
| author_facet | Leila Torki Seyed Komail Tayebi Mehdi Yazdani Elham Fathi |
| author_sort | Leila Torki |
| collection | DOAJ |
| description | An appropriate solution to resolve trade deficit is national currency devaluation. This policy is, at least in the long term, useful. It is based on the logic that any devaluation of national currency in the form of market mechanism reduces the trade deficit. On the other hand the trade balance of countries are affected by several factors including the international financial conditions that change the volume of international transactions and in this way affect the economy as a whole and trade balance in particular. The purpose of this paper is to study the factors affecting trade balance between Iran and her ten trading partners with considerations of the financial crisis index as a symbol of the international financial conditions. For this purpose, a time series is specified and then estimated by ARDL and error correction model (ECM) for the period of 1981-2009. Also the effects of the financial crisis on trade balance using Impulse Response Functions are considered. The results show that J curve is only confirmed for the bilateral trade of Iran with China and Italy and for the other countries, with consideration of the financial crisis, this hypothesis is rejected. It should be noted that all coefficients are stable with respect to the CUSUM and CUSUMQ tests. |
| first_indexed | 2024-03-08T19:27:33Z |
| format | Article |
| id | doaj.art-6aedbfc236ca403a945e731bc6a485c0 |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:33Z |
| publishDate | 2014-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-6aedbfc236ca403a945e731bc6a485c02023-12-26T07:58:34ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532014-06-011453167196473Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis IndexLeila Torki0Seyed Komail Tayebi1Mehdi Yazdani2Elham Fathi3استادیار گروه اقتصاد دانشگاه اصفهاناستاد گروه اقتصاد دانشگاه اصفهاناستادیار گروه اقتصاد دانشگاه شهید بهشتیکارشناس ارشد علوم اقتصادیAn appropriate solution to resolve trade deficit is national currency devaluation. This policy is, at least in the long term, useful. It is based on the logic that any devaluation of national currency in the form of market mechanism reduces the trade deficit. On the other hand the trade balance of countries are affected by several factors including the international financial conditions that change the volume of international transactions and in this way affect the economy as a whole and trade balance in particular. The purpose of this paper is to study the factors affecting trade balance between Iran and her ten trading partners with considerations of the financial crisis index as a symbol of the international financial conditions. For this purpose, a time series is specified and then estimated by ARDL and error correction model (ECM) for the period of 1981-2009. Also the effects of the financial crisis on trade balance using Impulse Response Functions are considered. The results show that J curve is only confirmed for the bilateral trade of Iran with China and Italy and for the other countries, with consideration of the financial crisis, this hypothesis is rejected. It should be noted that all coefficients are stable with respect to the CUSUM and CUSUMQ tests.https://joer.atu.ac.ir/article_473_cbd9094cb1b2b4047eb020cbb61e173b.pdftrade balancefinancial crisisreal exchange rateardl |
| spellingShingle | Leila Torki Seyed Komail Tayebi Mehdi Yazdani Elham Fathi Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī trade balance financial crisis real exchange rate ardl |
| title | Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index |
| title_full | Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index |
| title_fullStr | Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index |
| title_full_unstemmed | Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index |
| title_short | Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index |
| title_sort | dynamics of iranian trade with ten trade partners to exchange rate changes according to financial crisis index |
| topic | trade balance financial crisis real exchange rate ardl |
| url | https://joer.atu.ac.ir/article_473_cbd9094cb1b2b4047eb020cbb61e173b.pdf |
| work_keys_str_mv | AT leilatorki dynamicsofiraniantradewithtentradepartnerstoexchangeratechangesaccordingtofinancialcrisisindex AT seyedkomailtayebi dynamicsofiraniantradewithtentradepartnerstoexchangeratechangesaccordingtofinancialcrisisindex AT mehdiyazdani dynamicsofiraniantradewithtentradepartnerstoexchangeratechangesaccordingtofinancialcrisisindex AT elhamfathi dynamicsofiraniantradewithtentradepartnerstoexchangeratechangesaccordingtofinancialcrisisindex |