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

Hassan Molana and A. H. Mozayani
Additional contact information
A. H. Mozayani: Tarbiat-Modares University, Iran, Postal: Tarbiat-Modares University, Iran

Journal of International Development, 2006, vol. 18, issue 3, 319-330

Abstract: In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilize 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 one-off rise in money supply and find that the results support the above conjecture. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1002/jid.1222 Link to full text; subscription required (text/html)

Related works:
Working Paper: Is Monetary Discipline a Precondition for the Effectiveness of Iran's Export Promotion Policies? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:18:y:2006:i:3:p:319-330

DOI: 10.1002/jid.1222

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().