Analysis of the Asymmetric Effect of Exchange and Bank Facility Rates on Labor Productivity in Iran: NARDL Approach

Subject Areas : Financial Economics

Saeed Dehghan Manshadi ¹ , Mohsen Zayandehroodi ² , Abdolmajid Jalaee ³

1 - PhD student in Economics, Kerman Branch, Islamic Azad University, Kerman, Iran.
2 - Associate Professor, Department of Economics, Kerman Branch, Islamic Azad University, Kerman, Iran.
3 - Professor, Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

Received: 2021-11-02 Accepted : 2022-01-03 Published : 2022-10-01

Keywords:

References:

[1] Aghion, P., Bacchetta, P., Ranciere, R., Rogoff, K., Exchange Rate Volatilty and Productivity Growth: The Role of Financial Development, Journal of Monetary Economics,2006,56(4), P.494-513. Doi:10.3386/w12117 

[2] Aghion, P., Angeletos, G. M., Banerjee, A., Manova, K., Volatility and growth: Credit constraints and the composition of investment, Journal of Monetary Economics, 2010, 57(3), P.246-265.  Doi:10.1016/j.jmoneco.2010.02.005

[3] Aghion, P., Askenazy, P., Berman, N., Cette, G., & Eymard, L. Credit constraints and the cyclicality of R&D investment: Evidence from France, Journal of the European Economic Association, 2012, 10(5), P.1001-1024. Doi:10.1111/j.1542-4774.2012.01093.x

[4] Alexandre, F., Bacao, P., Cerejeira, J., Portla, M., Employment, Exchange Rates and Labour Market Rigidity. 2010,4891. Doi: 10.1111/twec.12376

[5] Azenui, B. N., Rada, C. Labor productivity growth in sub-Sahara African LDCs: sectoral contributions and macroeconomic factors, Journal Pre-proof. 2010.  Doi:10.1016/j.strueco.2020.07.005

[6] Balassa, B., The Purchasing –Power Parity Dotrine: A Reappraisal. The Journal of Political Economy, 1964, 72, P. 584-596, Doi:10.1016/j.jbusres.2021.10.001

[7] Bean, C., Living with low for long, The Economic Journal, 2016, 126 (592), P.507–522. Doi:10.1111/ecoj.12370

[8] Bergeaud, A., Cette, G., Lecat, R. The Circular Relationship Between Productivity Growth and Real Interest Rates, Working paper. Banque de France. 2019. Doi:10.2139/ssrn.3474897

[9] Eidi, M., Kiani, K. H., Rajaei, Y., Rahimzadeh, A., Investigating the Symmetric Effects of Exchange Rates on Iran's Money Demand Function Despite Religious Household Expenditures: The NARDL Approach, Financial Economics Quarterly, 2020, 52, P. 27-53. http://ecj.iauctb.ac.ir/article_679603.html (In Persian).

[10] Ebrahimi, M., Mamipour, S., Movahedi, F. Investigating the Asymmetric Effects of Real Exchange Rate Fluctuations on Private Sector Consumption in Iran: The NARDL Approach, Quarterly Journal of Economic Research and Policy,2018, 78(26), P. 345-309. URL: http://qjerp.ir/article-1-2029-fa.html (In Persian).

[11] Emami, K., Maleki, E. Investigating the effect of exchange rate fluctuations on employment in Iran. Quarterly Journal of Economic Sciences, 2014,  8, No. 26. http://ecj.iauctb.ac.ir/article_512786.html (In Persian).

[12] Eggertsson, G., Neil, R., Mehrotra, R., Singh., Lawrence H. “A contagious malady? Open economy dimensions of secular stagnation,” IMF Economic Review, 2016, 64 (4), P.581–634. Doi:10.3386/w22299

[13] Ekholm, P., Valkama, P., Jaakkola, E., Kiirikki, M., Lahti, K., & Pietola, L. Gypsum amendment of soils reduces phosphorus losses in an agricultural catchment. Agricultural and Food Science, 2012, 21(3), P.279-291.  Doi:10.23986/afsci.6831

[14] Faleiros, J.P.M., Da Silva, J.C.D. and Nakaguma, M.Y. Evaluating the effect of exchange rate and labor productivity on import penetration of Brazilian manufacturing sectors. EconomiA, 2016, 17(1), P.3-22. Doi:10.1016/j.econ.2016.03.004

[15] Guillaumont Jeanneney, S., Hua, P. How does real exchange rate influence labour productivity in China. China Economic Review.2011, 22 (2011), P. 628–645. Doi:0000-0003-1935-9067

[16] Griliches, Z. Education and Productivity ,(Oxford, Basil Blackwell), 1988, https://www.researchgate.net/publication/44817722

[17] Ghaffari, H., Jalali, M., Changi Ashtiani, A. Investigating and Predicting the Effects of Exchange Rate Increase on Economic Growth in Major Sectors of Iran's Economy (1976-2014), Research Quarterly, Economic Growth, and Development Research, 2012, 7, P.58-41. https://civilica.com/doc/309460 (In Persian).

[18] Hu, B. and McAleer, M., Estimation of Chinese agricultural production efficiencies with panel data. Mathematics and Computers in Simulation, 2005, 68(5-6), P. 474-483. Doi:10.1016/j.matcom.2005.02.002

[19] Jalaei, S., Abdul Al-Majid, N., M., Bagheri. Investigating the Impact of Exchange Rate Shocks on Investment and Employment in Iran with the Approach of Computable General Equilibrium Models, Quarterly Journal of Economic Research (Sustainable Growth and Development), 2015, 16(2), P. 220-201. (In Persian).

[20] Jorgenson, D.W. & Griliches, Z. The explanation of productivity change, Review of Economic Studies, 1967, 34, P. 349–383. https://econpapers.repec.org/scripts/redir.pf.

[21] King, Robert G., Ross., L. “Finance and growth: Schumpeter might be right,” The Quarterly Journal of Economics, 1993, 108 (3), P.717–737 Doi:10.2307/2118406

[22] Komijani, A., Ebrahimi, S., The Effect of Exchange Rate Fluctuations on Productivity Growth in Developing Countries in Financial Development Level, Quarterly Journal of Applied Studies in Iran, 2013, 6(1), P. 1-26. Dor: 20.1001.1.24765775.1397.9.3.2.1 (In Persian).

[23] Kazeruni, A., Rostami, N. Asymmetric Effects of Exchange Rate Fluctuations on Real Production and Price in Iran (2002-2001), Economic Research Journal, 2007, P. 196-17. (In Persian).

[24] Levine, Ross, Financial development and economic growth: views and agenda, Journal of Economic Literature, 1997, 35(2), P.688–7. Doi:10.1596/1813-9450-1678

[25] Moradi, E., Ghaffari I., S. M., Ahmadi, A. The Impact of Bank Facilities Growth on Economic and Investment Growth in Iran, Monetary-Banking Research Quarterly, 2018, 11(35), P. 1-24.

[26] Marx, Magali, Benoît Mojon, and François R Velde, Why Have Interest Rates Fallen Far Below the Return on Capital, Working Paper 630, Banque de France June. 2017, Doi:10.1016/j.jmoneco.2021.09.008

[27] Nucci, F., Pozzolo, A. F., The exchange rate, employment and hours: What firm-level data say, Journal of International Economics, 2010,  82(2), P.112-123. Doi:10.2139/ssrn.1534617

[28] Özbilgin, HM., A review on the relationship between real exchange rate, productivity, and growth, Central Bank Review, 2015, 15, P. 61-69. Doi:10.1515/jgd-2019-0024

[29] Pesaran M.H., Shin, Y., & Smith, R.J., Bounds testing approaches to the analysis of level relationship, J Appl Econometrics, 2001, 16, P. 289–326. Doi:10.1002/jae.616

[30] Rajan, Raghuram G., and Luigi Zingales, Financial Dependence and Growth, The American Economic Review, 1998, 88 (3), P.559–586. https://www.jstor.org/stable/116849

[31] Romer, R.E. Monetary Policy in oil-producing economies, CEPS working paper. 2008, 169.

[32] Samuelson, P.A. Theoretical notes on trade problems. Review of Economics and Statistics, 1964, 46, P. 145–154. https://mpra.ub.uni-muenchen.de/92558/

[33] Shin, Y., Yu, B., Greenwood-Nimmo, M. Modelling Asymmetric Cointegration and Dynamic Multiplier in a Nonlinear ARDL Framework, 2011 Doi:10.1007/978-1-4899-8008-3_9

[34] Shin Y., Yu B. and Greenwood-Nimmo M., Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework, Springer New York, 2014, P. 281-314. Doi:10.1258/978-1-4899-8008

[35] Solow, R.M.,Technical change and the aggregate production function, Review of Economics and Statistics, 1957, 39, P. 31. Doi:10.2307/1926047

[36] Tavakoli, A., Sayyah, M., The effect of exchange rate fluctuations on the country's economic activities, Money and Economics Quarterly, 2014, 4, p. 12-22. https://www.sid.ir/fa/journal/ViewPaper.aspx?id=147611 (In Persian).

 [37] Thinhberg, OAN Thi Hong, GENTE, Karine. Real Exchange Rate and Productivity in a Specific-Factor Model with Skilled and Unskilled Labour. 2014 Doi:10.1016/j.jmacro.2014.01.005