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Is monetary discipline a precondition for the effectiveness of Iran's export promotion policies? Author info | Abstract | Publisher info | Download info | Related research | Statistics H. Molana (University of Dundee, UK)
A. H. Mozayani (Tarbiat-Modares University, Iran)
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.
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development .
Volume (Year): 18 (2006)
Issue (Month): 3 ()
Pages: 319-330
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Handle: RePEc:wly:jintdv:v:18:y:2006:i:3:p:319-330Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home
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Keywords: References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Other versions:
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CEPR Discussion Papers
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