Authors
1 MA in Economics
2 Assistant Professor, Bu-Ali Sina University,Hamedan
3 Master student of financial management, University of Tehran
Abstract
This paper studies the effect of real exchange rate uncertainty on private investment in Iran. We estimate the effect using a model for private investment in Iran and the time series data for the period 1977-2004. We use the GARCH method to construct an estimate of the real exchange rate uncertainty, and estimate the model by OLS method. The results show that the effect of uncertainty of real exchange rate on investment by private sector is significantly negative.
Keywords
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