Hosein Mohammadi; Sayed Hosein Saghaian; Amirhosein Tohidi
Volume 20, Issue 65 , February 2016, , Pages 159-184
Abstract
Exchange rate pass-through is one of the most important issues in the international economic studies. Determining the degree of exchange rate pass-through can be used to define the effectiveness of foreign policy, market structure and exporters behavior. The main objective of this study is to investigate ...
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Exchange rate pass-through is one of the most important issues in the international economic studies. Determining the degree of exchange rate pass-through can be used to define the effectiveness of foreign policy, market structure and exporters behavior. The main objective of this study is to investigate the exchange rate pass-through to export prices of Iranian pistachios during the period 1961-2011. In the previous studies, the exchange rate pass-through was assumed to be fixed during different years. This assumption is not consistent with reality, because many factors can influence the exchange rate pass-through. In this study, sensitivity analysis in the framework of artificial neural network is used to address this shortcoming. The results shows that exchange rate pass-through to Iran's pistachio export prices has been more than 70 percent, and its trend has been periodic. Furthermore, the results showed that there is a direct relationship between exchange rate fluctuations and Iranian pistachio export prices. Thus, by reducing exchange rate volatility, it is possible to supply pistachio with lower prices to the world markets. Considering the high elasticity of demand for the Iranian pistachio prices, a reduction in prices would increase revenues of exporters. Incidentally, given the high elasticity of export demand for Iran's pistachio, the revenues from the export of this product can be increased by reducing the cost of pistachio production.
Seyed Komail Tayebi; Khadijeh Nasrollahi; Mehdi Yazdani; Seyed Hassan Malekhosseini
Abstract
The exchange rate pass-through explains the relationship between changes in national currency and foreign trade of a country, while the responsiveness of trade to the currency changes depends on the perfect or imperfect degree of pass-through.
The objective of this study is to analyze the effect of ...
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The exchange rate pass-through explains the relationship between changes in national currency and foreign trade of a country, while the responsiveness of trade to the currency changes depends on the perfect or imperfect degree of pass-through.
The objective of this study is to analyze the effect of exchange rate pass-through on inflation in Iran as one of the main oil-exporting countries. To this end, we have specified a Structural Vector Auto-Regressive (SVAR) model including macroeconomic variables such as oil revenues, output gap, free market exchange rate, import prices, producer prices, consumer prices and money supply. To estimate the model, we have used quarterly data over the period 1991:1 - 2012:4.
Empirical results of the model estimation, which are in forms of impulse response functions and variance decomposition, have shown that although the degree of exchange rate pass-through to the price indices has been incomplete, changes in the exchange rate have led to fluctuations in the prices explaining partly Iran’s inflationary situation during the period under consideration. It also reveals the fact that a higher share of imported inflation implies the economy’s dependence on imports.
Hoshang Shajari; Komail Tayebi; Seyed Abdolmajid Jalaee
Volume 8, Issue 26 , April 2006, , Pages 153-179
Abstract
In the literature of international economics, determination of exchange rate pass- through has been closefy related to main determinants, and to its impacts on other economic variables. In principle, exchange rate pass-through is defined as a change in exchange rate as a result of a change in prices ...
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In the literature of international economics, determination of exchange rate pass- through has been closefy related to main determinants, and to its impacts on other economic variables. In principle, exchange rate pass-through is defined as a change in exchange rate as a result of a change in prices of imported goods. The pass-through is generally measured based on the responsiveness of the import price index to changes in real exchange rate. In accordance with fluctuations in foreign exchange and the exchange rate, this paper attempts to explore the importance of exchange rate pass-through in the Iranian economy. origenaly, a theoretical discussion of the exchange rate pass-through is reviewed, and then, by using Neuro-Fuzzy Systems its situation in Iran is analyzed. In addition, empirical models of import prices and exchange rate are specified for the Iranian economy to examine the impacts of monetary and foreign exchange policies, as well as the degree of economic opennness on exhang rate pass-through in Iran. The models are also estimated and evaluated by the Neuro-Fuzzy Systems. In general, the results obtained indicate that the conduction of all mentioned policies has significant and positive effects on the pass-through status. In addition, the method used is a more efficient and reliable instrument in forecasting the trends of the exchange rate and the price variables
