Ahmad Mojtahed.; Azam Ahmadyan
Volume 9, Issue 30 , April 2007, , Pages 1-21
Abstract
The main purpose of this paper is to examine an appropriate exchange rate policy in Iran . Most of the studies have suggested a flexible exchange rate policy with a coordination between monetary and exchange rate policies for the Iranian economy. In this paper, we test the hypothesis that the managed ...
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The main purpose of this paper is to examine an appropriate exchange rate policy in Iran . Most of the studies have suggested a flexible exchange rate policy with a coordination between monetary and exchange rate policies for the Iranian economy. In this paper, we test the hypothesis that the managed exchange rate policy is the most appropriate policy for Iran using the Mundell-Fleming model, and 2SLS method for period 1974-2004.
The estimated macroeconometric model is used to simulate the reaction of five exchange rates regimes to fluctuations of net asset from abroad in the banking system.
The results reveal that the managed exchange policy would yield more stable prices, imports, welfare and money stock .In contrast, a quasi-floating exchange rate policy in which the exchange rate is determined by the percentage of trade balance deviations, will result in the worst kind of volatility in prices, imports, welfare and money stock.
Enayatollah Fakhrai; Farrokh Norroozy
Volume 9, Issue 30 , April 2007, , Pages 119-135
Abstract
Rice is an important item in the Iranian agricultural product imports. This paper presents the estimation of an error correction model of linear approximation of the Almost Ideal Demand System for various kinds of imported rice, including Pakistanian, Thai, and others, as well as Iranian rice. The period ...
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Rice is an important item in the Iranian agricultural product imports. This paper presents the estimation of an error correction model of linear approximation of the Almost Ideal Demand System for various kinds of imported rice, including Pakistanian, Thai, and others, as well as Iranian rice. The period of the study covers the period1981-2004. The findings of the research show that short-run and long-run Marshalian own price elasticities are negative except for that of Pakistanian rice wich has a positive elastivity in the short-run, though very close to zero. The short-run Hicksian own price elasticities are all negative and close to those of Marshalian ones, except for Pakistanian rice which is positive in both cases. The Hicksian cross elasticties indicate that all Pakistanian and Thai rice are imported by government in response to the shortages in the domestic market. That is the complementarity of the domestic and the imported rice is not due to the consumer preferances.
Farshid Mojaver Hosseini; Farid Fayazmanesh
Volume 8, Issue 27 , July 2006, , Pages 33-64
Abstract
Assessment of sectoral impacts of Iran’s accession to the world trade organization is the prime objective of this paper. To this end a Computable General Equilibrium (CGE) model is employed. Using a Social Accounting Matrix (SAM), the model is calibrated to 1997 as the benchmark year. The ...
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Assessment of sectoral impacts of Iran’s accession to the world trade organization is the prime objective of this paper. To this end a Computable General Equilibrium (CGE) model is employed. Using a Social Accounting Matrix (SAM), the model is calibrated to 1997 as the benchmark year. The results of the model indicate that accession of Iran to WTO leads to 2.6 percent contraction of the manufacturing sector and 1.7 percent expansion of the agricultural sector. Market access provision of WTO is most beneficial to Iranian non-oil exports, such that exports of manufacturing, mining and agriculture increases between 17.5 and 20.5 percent. Joining WTO exerts heavy pressure on mining sector, while construction sector experiences moderate expansion. An increase in international oil price can amplify the impacts of WTO accession on the expansion of the construction sector, weaken its impact on agriculture expansion and worsen its contractionary impact on Mining, Manufacturing and the Utilities.
Reza Mohseni
Volume 7, Issue 25 , February 2006, , Pages 127-152
Abstract
This paper analyses the impact of reduction of tariff and non-tariff barriers on the imports of selected developing countries, utilizing dynamic panel data technique. The results indicate that Income and price elasticities are strongly statistically significant and reduction of import duties and ...
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This paper analyses the impact of reduction of tariff and non-tariff barriers on the imports of selected developing countries, utilizing dynamic panel data technique. The results indicate that Income and price elasticities are strongly statistically significant and reduction of import duties and increase of trade liberalization degree have a positive and significant effect on import growth. This effect increases import growth between 100 to 300 percent in all countries. Also, we test if the income elasticity of import demand changes with trade liberalization, and also if the price elasticity changes as the ability to substitute domestic production for imports becomes easier. The assumption is that trade liberalization has a significant impact not only on the growth of imports, but also on their sensitivity to income and price variations.
