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Factors Affecting the Changes in the Value of the National Currency and Its Impact on the Competitiveness Index in the Iranian Economy during (1979-2016)
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Vahid Manafi anvar *    |
| Phd student in Economic, Payamnoor University of Tehran, Tehran ,Iran |
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Abstract: (1054 Views) |
| Today, the value of the national currency is not only influenced by the domestic economic policies of each country, but any economic and political events in the international arena will also affect the value of the domestic currency and, consequently, the economy. The core of macroeconomics in a flexible foreign exchange system is the role of the exchange rate in influencing the country's competitiveness in the global market for goods in the country. If the price of goods produced in the country decreases relative to the price of competing goods in the global market, it will increase the competitiveness of the country and vice versa. Countries whose currency revenues are received from industrial exports usually try to control domestic inflation and maintain a nominal exchange rate in order to maintain a balance of payments, so that their competitiveness in the global market can not be distorted. On the other hand, in today's world, increasing the level of living and prosperity of individuals in a country depends on the competitiveness of companies and firms operating in the country. Therefore, the purpose of this study is to investigate changes in the value of the national currency and its impact on the competitiveness index in the Iranian economy during the period of 1979-2016. The estimation of the equations is carried out using Distributed Layer Method (ARDL) using Microfit4.1 software |
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| Keywords: ARDL, competitiveness index, effective real exchange rate, exchange rate |
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Full-Text [PDF 821 kb]
(173 Downloads)
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notification: Research |
Subject:
Financial macroeconomics
Received: 2021/02/6 | Accepted: 2022/12/25 | Published: 2023/02/15
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