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Inflation And Openness: Empirical Evidences From Iran (1965-2010)

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  • HAMI Mahyar

    (Mazandaran University of Science & Technology, Babol, Iran)

Abstract

The aim of this paper is to examine the causal relationship between inflation and openness in Iran emphasizing long-run relations during 1965 - 2010. To do so, I used growth rate of the consumer prices as the indicator of inflation and total exports and imports as a percentage of GDP to measure trade openness. Then I applied Vector Error Correction Model to estimate the proposed model. The results show that there is a one-way causal relationship from inflation to openness in Iran during the observation period and inflation has a positively significant impact on trade openness, so that 1% increase in inflation rate has led to approximately 0.12% increase in trade openness in the next period and 0.19% increase in trade openness in the next two period.

Suggested Citation

  • HAMI Mahyar, 2014. "Inflation And Openness: Empirical Evidences From Iran (1965-2010)," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(2), pages 27-32, August.
    • Handle: RePEc:blg:journl:v:9:y:2014:i:2:p:27-32
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    References listed on IDEAS

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    Cited by:

    1. HAMI Mahyar, 2017. "The Effect Of Inflation On Financial Development Indicators In Iran (2000-2015)," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(2), pages 53-62, August.
    2. MAHYAR Hami, 2016. "Economic Growth And Life Expectancy: The Case Of Iran," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 80-87, April.

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