Exchange Rate Gap Effect On Economic Growth In Iran

This paper examines the effect of exchange rate gap (difference between official and parallel market rates) on economic growth in Iran during 1961-2007 based on the Error Correction Model. The empirical result indicates that, there is a significant long run relationship between exchange rate gap and economic growth. So, adopting a suitable exchange rate policy to adjust the real exchange rate may have an important role to increase output capacity and achieving higher economic growth.

Provided by: World Business Institute Topic: Big Data Date Added: Dec 2010 Format: PDF

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