Based on the impact of foreign trade on economic growth, various theories has established which according to them many policies and strategies have introduced. As a fact, the performance of trade depends on many factors, like, real exchange rate; the effect
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Based on the impact of foreign trade on economic growth, various theories has established which according to them many policies and strategies have introduced. As a fact, the performance of trade depends on many factors, like, real exchange rate; the effect of real exchange rate on economic growth efficiency has studied in this paper. In this regard, the main point of this study is to estimate optimum threshold point of real exchange rate in growth- trade link in Iranian economy during 1971-2012.in doing so, TR technique has used for considering the data extracted from Iranian central bank reports and statistical center of Iran.
Results confirm a negative influence of foreign trade on economic growth in high level of the optimum exchange rate. Also, according to the main findings, efficient rate of real exchange rate for Iranian economic is equal to 9892 Rials. So, by increasing real exchange rate more than this level, one percentage of increasing economic openness index, due to decreasing economic growth to 0.090517 %, while the same increasing of exchange rate in lower level of threshold rate make positive economic growth to 0.054%.
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