Investigating the asymmetric effects of exchange rate on gross domestic product in business cycles of Iran

Subject Areas : Financial Economics

negin rahimi ¹ , Roya Aleemran ^{2 *} , Hossein Panahi ³ , حسین اصغرپور ⁴

1 - Azad Islamic University
2 - Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran (corresponding author
3 - Tabriz University
4 - دانشیار گروه علوم اقتصادی دانشگاه تبریز

Received: 2022-10-23 Accepted : 2024-07-03 Published : 2025-07-02

Keywords: asymmetric effects, exchange rate, GDP, business cycles, Iran.,

Abstract :

Exchange rate is a key variable in the economy of any country. The main purpose of this research is to investigate the asymmetric effects of exchange rate on the gross domestic product in business periods in the selected country of Iran. For this purpose, in this research, the annual time series data of Iran's economy during the period (1981-2020) and in the framework of econometric models using the Johanson-Josilius co-accumulation technique have been examined. The empirical findings of the research indicate the existence of asymmetric effects of the exchange rate on the gross domestic product during economic boom and recession. So that the effects of the exchange rate during the boom period are greater than the economic recession. Considering the importance of the issue in policies and the possibility of influencing production through the exchange rate, therefore, it is necessary for the government in economic planning to the conditions of recession and economic prosperity of the country and more monitoring of the money market and reducing the level of fluctuations and currency shocks caused by speculation in order to increase Consider the stability and stability of the country.