Economics, Econometrics and Finance
5 years ago

Depreciation of Real Exchange Rate Impacts Iran's Automotive Trade Balance.

Arth prabandh: A Journal of Economics and Management
The Real Exchange Rate and The Balance of Trade in The Automotive Industry of Iran
Seyed Kamal Sadeghi, Zahra Karimi, Reza Karbor, Maryam Barzegar Marvasti

Paper Summary

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The study looked at how the exchange rate and income levels in Iran affected the automotive industry's export revenue and import spending from 1992 to 2013. By analyzing separate models for export revenue and import spending, the researchers found that a decrease in the exchange rate had a short-term impact on both export revenue and import spending. Additionally, they discovered that home income influenced import spending, while the impact of foreign income was inconclusive.