Dundee Discussion Papers in Economics 165: Is monetary discipline a precondition for the effectiveness of Iran’s export promotion policies?

Hassan Molana; A. H. Mozayani

Dundee Discussion Papers in Economics 165: Is monetary discipline a precondition for the effectiveness of Iran’s export promotion policies?

Hassan Molana
, A. H. Mozayani

Research output: Working paper/Preprint › Discussion paper

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Abstract

In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilise the dollar exchange rate and eliminate the black market premium. These policies have had little, if any, lasting favourable effect on non-oil exports. One conjecture may be based on the inconsistency of their monetary policy: as money supply is used independently - without any regard for trade reforms and export promoting policies - to accommodate government’s fiscal needs, its inflationary consequences undermine export incentives. We use 1982:Q1-2000:Q2 data to estimate the response of exports to a oneoff rise to money supply and find that the results support the above conjecture.

Original language	English
Publisher	University of Dundee
Publication status	Published - 2004

Publication series

Name	Dundee Discussion Papers in Economics
Publisher	University of Dundee
No.	165
ISSN (Print)	1473-236X

Keywords

Black market premium
Exchange rates
Export performance
Impulse reponse
Islamic Republic of Iran
Monetary policy

Access to Document

DDPE_165.pdf

Is monetary discipline a precondition for the effectiveness of Iran’s export promotion policies?
Molana, H. & Mozayani, A. H., Apr 2006, In: Journal of International Development. 18, 3, p. 319-330
Research output: Contribution to journal › Article › peer-review
4 Link opens in a new tab Citations (Scopus)

Cite this

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title = "Dundee Discussion Papers in Economics 165: Is monetary discipline a precondition for the effectiveness of Iran{\textquoteright}s export promotion policies?",

abstract = "In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilise the dollar exchange rate and eliminate the black market premium. These policies have had little, if any, lasting favourable effect on non-oil exports. One conjecture may be based on the inconsistency of their monetary policy: as money supply is used independently - without any regard for trade reforms and export promoting policies - to accommodate government{\textquoteright}s fiscal needs, its inflationary consequences undermine export incentives. We use 1982:Q1-2000:Q2 data to estimate the response of exports to a oneoff rise to money supply and find that the results support the above conjecture.",

keywords = "Black market premium, Exchange rates, Export performance, Impulse reponse, Islamic Republic of Iran, Monetary policy",

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AU - Mozayani, A. H.

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Y1 - 2004

N2 - In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilise the dollar exchange rate and eliminate the black market premium. These policies have had little, if any, lasting favourable effect on non-oil exports. One conjecture may be based on the inconsistency of their monetary policy: as money supply is used independently - without any regard for trade reforms and export promoting policies - to accommodate government’s fiscal needs, its inflationary consequences undermine export incentives. We use 1982:Q1-2000:Q2 data to estimate the response of exports to a oneoff rise to money supply and find that the results support the above conjecture.

AB - In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilise the dollar exchange rate and eliminate the black market premium. These policies have had little, if any, lasting favourable effect on non-oil exports. One conjecture may be based on the inconsistency of their monetary policy: as money supply is used independently - without any regard for trade reforms and export promoting policies - to accommodate government’s fiscal needs, its inflationary consequences undermine export incentives. We use 1982:Q1-2000:Q2 data to estimate the response of exports to a oneoff rise to money supply and find that the results support the above conjecture.

KW - Black market premium

KW - Exchange rates

KW - Export performance

KW - Impulse reponse

KW - Islamic Republic of Iran

KW - Monetary policy

M3 - Discussion paper

T3 - Dundee Discussion Papers in Economics

BT - Dundee Discussion Papers in Economics 165

PB - University of Dundee

ER -

Dundee Discussion Papers in Economics 165: Is monetary discipline a precondition for the effectiveness of Iran’s export promotion policies?

Abstract

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Research output

Is monetary discipline a precondition for the effectiveness of Iran’s export promotion policies?

Cite this