An Empirical Analysis of Exchange Rate Pass-Through to Iran's Saffron Export Price
Authors
Abstract:
Exchange rate pass-through to the price of traded goods is one of the important issues in economy of developing countries such as Iran and affects the efficiency of the exchange rate policies to improve the trade balance. The main aim of this paper is to empirically analyze exchange rate pass-through to Iran's saffron export price using panel data for twenty destination markets during 2000–2011. Utilizing the system generalized method of moments and controlling endogeneity of several explanatory variables, the estimation results showed that exchange rate pass-through was incomplete. Considering incomplete pass-through of exchange rate to Iran's saffron export price, it is concluded that Iranian exporters are able to discriminate price among destination markets and can absorb a portion of the change in the exchange rate in order to maintain or increase market share. The results also suggest that Iranian exporters partially offset the effect of tariff rate on saffron export price. Another important result is that macroeconomic environment in destination markets plays an important role in determining the Iran's saffron export price.
similar resources
an empirical analysis of exchange rate pass-through to iran's saffron export price
exchange rate pass-through to the price of traded goods is one of the important issues in economy of developing countries such as iran and affects the efficiency of the exchange rate policies to improve the trade balance. the main aim of this paper is to empirically analyze exchange rate pass-through to iran's saffron export price using panel data for twenty destination markets during 2000...
full textan empirical analysis of exchange rate pass-through to iran's saffron export price
exchange rate pass-through to the price of traded goods is one of the important issues in economy of developing countries such as iran and affects the efficiency of the exchange rate policies to improve the trade balance. the main aim of this paper is to empirically analyze exchange rate pass-through to iran's saffron export price using panel data for twenty destination markets during 2000–2011...
full textMarkov-switching analysis of exchange rate pass-through: Sugar Price in Iran
Due to its inherent role in ensuring food security and as one of the productive sectors of the economy, the agricultural sector has a priority in receiving preferential currency. Having a preferred currency has caused the price of this commodity in the market to be multi-valued. On the other hand, the allocation of billions of dollars at a price lower than the free market price of foreign excha...
full textExchange rate pass-through in Iran: Exchange rate effects on the consumer price index
The purpose of this study is to find an accurate estimate of the exchange rate-CPI relationship in Iran over the past three decades. The results of the Granger causality test in the frequency domain demonstrate a strong causation from the exchange rate to CPI especially in the long run. The results of the wavelet analysis show that in the currency crisis periods, the exchange rate-CPI correlati...
full textThe Exchange Rate Asymmetric Pass-Through to Import Price Index: The Case Study of Iran
The main objective of this paper is to investigate the asymmetric effects of exchangerate on Iranian import price index using quarterly time series data over the period 1990- 2011. For this purpose, positive and negative shocks of the exchange rate have been separated from each other using dummy variables and the effects of the size of the exchange rate shocks by determining a threshold.The emp...
full textThe Determinants of Exchange Rate System: an Empirical Analysis
Since the breakdown of the Bretton Woods System, exchange arrangements of countries have become flexible. Several attempts have been made to determine whether the theories of optimum currency areas adequately explain the choice of an exchange rate system. In this paper, the optimum currency area is retested. Using cross-section data, a regression analysis of the choice of an exchange rate syste...
full textMy Resources
Journal title
volume 1 issue 1
pages 29- 36
publication date 2014-03-01
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023