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Does black market exchange rate volatility deter the trade flows? Iranian experience

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  • Mohsen Bahmani-Oskooee

Abstract

Previous studies that investigated the impact of exchange rate volatility on the trade flows, employed official exchange rate data to construct a measure of exchange rate uncertainty. In this paper we show that in countries that there is a black market for foreign exchange, the black market exchange rate volatility could have adverse effect on the trade flows. We show this by using data from Iran and cointegration analysis.

Suggested Citation

  • Mohsen Bahmani-Oskooee, 2002. "Does black market exchange rate volatility deter the trade flows? Iranian experience," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2249-2255.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2249-2255
    DOI: 10.1080/00036840210138455
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    References listed on IDEAS

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