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Investigating the effect of exchange rate fluctuations on the growth of Iran's economic sectors
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Syed Ahmad Shojaee1   , Reza Maaboudi *2 , Hamid Asayesh3 |
1- PhD student in economics. Islamic Azad university. Oligoders unit
2- Assistant Professor at Ayatollah Azami Borujerdi University and Visiting Professor at Islamic Azad University. Oligoders unit , maaboudi@abru.ac.ir
3- Associate Professor of Ayatollah Azami Borujerdi University. |
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Abstract: (2786 Views) |
The purpose of the article is to investigate the effect of exchange rate fluctuations on the growth of different sectors of Iran's economy through import and export channels using the Garch model and simultaneous equations during the period of 2018-1988in Iran.
The results showed that exchange rate fluctuations have the greatest impact on industry and mining sectors. With the increase in exchange rate fluctuations, the added value of the industry and mining sector decreased by 0.0349% and the added value of the agricultural sector decreased by 0.008%. Regarding the added value of the service sector, since this sector has little dependence on imports, it is not significantly affected by exchange rate fluctuations. With the increase in exchange rate fluctuations, the rate of economic growth in the whole economy and in these sectors decreases, which is due to the dependence of the Iranian economy and the industrial and agricultural sectors on the import of raw materials and inputs. Finally, based on the results, in order to reduce the economy's dependence on imports and its impact on exchange rate fluctuations, it is suggested to use the import substitution strategy in the country's development plans.
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Article number: 9 |
| Keywords: exchange rate fluctuations, economic growth, industrial and agricultural sectors, Iran's economy, Garch model and simultaneous equations |
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Full-Text [PDF 993 kb]
(6461 Downloads)
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Article type: Research |
Subject:
Special
Received: 2023/06/29 | Accepted: 2023/07/20 | Published: 2023/10/2
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