Evaluating the Effects of Real Exchange Rate Fluctuations on Export of Technical and Engineering Services in Iran

Document Type : Scientific paper

Authors

economics department

Abstract

One of the main elements for attracting international resources is the export of Technical and Engineering Services. This variable is affected by macroeconomic environment of countries and the exchange rate fluctuations areone of the main effective variables in this regard. This study tries to evaluate the effects of the real exchange rate fluctuations on export of Technical and Engineering Services among Iran and its major partners using gravity model framework. Hence,the panel data for 15 trade major partners of Iran during 2003-2013 and Poisson-pseudo maximum likelihood method has been used for this purpose. The results show that the real exchange rate fluctuations, the distance variable and the dissimilar economic structures have negative effect on export of Technical and Engineering Services among Iran and its major partners during the period.Also the GDP per capita of Iran and its trade partners, the common border and the common religion have positive effect on the dependent variable. Finally, the effect of same economic policies (monetary and fiscal policies) on export of Technical and Engineering Servicesis not significant. So, considering the real exchange rate instead nominal exchange rate by policy makers, can lead to sustainable growth in export of Technical and Engineering Services.

Keywords

References

 
Macroeconomics Research Letter
Volume 11, Issue 21
June 2016
Pages 129-153

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History

  • Receive Date: 19 June 2016
  • Revise Date: 11 March 2017
  • Accept Date: 25 February 2017

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