An investigation of the Effects of Exchange Rate Policies on Iran’s Non- oil Exports with an Emphasis on Foreign Exchange Commitment and Exchange Rate Unification Policies

Yavari, Kazem; Yavari, Kazem; Rezagholizadeh, Mahdieh; Aghaei, Majid

An investigation of the Effects of Exchange Rate Policies on Iran’s Non- oil Exports with an Emphasis on Foreign Exchange Commitment and Exchange Rate Unification Policies

Authors

Kazem Yavari ¹

Mahdieh Rezagholizadeh ²

Majid Aghaei ²

¹ Associate Professor of Economics, Tarbiat Modares University

² Ph.D. Student of Economics, Tarbiat Modares University

Abstract

This article analyses the effects of foreign exchange commitment and exchange rate unification policies on Iran’s non-oil exports during the last three decades. In addition, the effects of these policies on non-oil exports have empirically been estimated. For this purpose, an export supply model was estimated using the econometrics technique of Auto Regressive Distributed Lag (ARDL) and reliable Iranian data for the last three decades.
The empirical results of this paper shows that during the entire period of 1977-2008, foreign exchange commitment policy has caused non-oil exports to decline, but exchange rate unification policy has had positive effects on Iran’s non-oil exports.

Keywords

Exchange rate

Non-oil Exports

Exchange rate policies

Foreign exchange commitment policy

Exchange rate unification policy