The Effects of Exchange Rate Volatility on Agricultural Trade in Iran

Subject Areas : Agricultural Economics Research

F. زمانی ¹ , H. مهرابی بشرآبادی ²

1 - دانشجوی کارشناسی ارشد بخش اقتصاد کشاورزی دانشگاه شهید باهنر کرمان.
2 - استاد بخش اقتصاد کشاورزی دانشگاه شهید باهنر کرمان.

Received: 2014-10-01 Accepted : 2014-10-01 Published : 2014-08-23

Keywords: trade, Agriculture, GARCH, Exchange Rate Volatility,

Abstract :

Exchange rate is one of the important variables that affect trade.  In this paper by using GARCH   method, effects of real exchange volatility on agricultural trade in Iran have been determined for period of 1973- 2007. Results of the research showed that real exchange rate volatility with one lag had negative effect on export of agricultural products in the long run. Results also showed that the effect of   real exchange rate volatility on agriculture import was positive in the long run and negative in the short run. Finally, some recommendations are made to reduce exchange rate volatility.