Record Details

Effect of the Financial Crisis on Current Account Deficit in Iran

Journal of Financial Innovation

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Title Effect of the Financial Crisis on Current Account Deficit in Iran
 
Creator Fakhrehosseini, Seyed Fakhredin
Kaviani, Meysam
Veisari, Elham Fazeli
 
Subject —
Financial Crisis; Current Account Deficit; Islamic Economic System
 
Description Purpose. The study examined the relationship between financial crisis and current account deficit for the economy of Iran. Time series data was used from the period 1978 to 2011. Augmented Dickey Fuller Test used to check the stationary of the variables and found that all variables were stationary at first difference.Design. Johansen Co-integration used to find the long relationship and found that variation of real exchange rates has positive effect on trade deficit in long run.Findings. Error correction model indicated the convergence or divergence of the economy in short run to long run. The ECM results showed that 51% convergence occur within year. Originality. Present Paper, estimates the effects of banking crises and currency crises on imports and exports. The estimated results can be used to predict the impact of financial crises on trade of Iran, thus providing useful information for risk management to policymakers.
 
Publisher Instituto Brasileiro de Inovacao Financeira - IBRIF
 
Contributor —
 
Date 2015-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://www.ibrif.org/ojs/index.php/jofi/article/view/30
10.15194/jofi_2016.v2.i1.30
 
Source Journal of Financial Innovation; Early View
Journal of Financial Innovation; Early View
2359-1005
2359-1005
 
Language eng
 
Relation http://www.ibrif.org/ojs/index.php/jofi/article/view/30/pdf
 
Coverage Asia
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Rights Copyright (c) 2016 Journal of Financial Innovation
http://creativecommons.org/licenses/by-nc-nd/4.0