IDEAS home Printed from https://ideas.repec.org/a/wsi/gejxxx/v15y2015i03ngej-2014-0059.html
   My bibliography  Save this article

Oil Revenues and Export Earnings Instability: The Evidence from Iran

Author

Listed:
  • Parviz Asheghian

    (Department of Economics, California State University San Bernardino, San Bernardino, CA 92407-2393, USA)

Abstract

As a member of OPEC, Iran is a nation that is dependent on petrodollars. More specifically, roughly 80 percent of total export earnings in Iran are generated from oil revenue. This in fact is one of the attributes of many developing countries in that their exports are concentrated in either one or a small number of primary products that contribute to the bulk of their foreign exchange revenues. Export instability occurs because export earnings tend to fluctuate annually to a greater extent for developing countries than for advanced countries. The factors that give rise to export instability can be classified as price variability and a high degree of commodity concentration. To date, no study has examined the impact of export instability in the highly oil-dependent Iran. This study develops a model and employs a forty-year annual time series data set to estimate the impact of commodity concentration and price variability in Iran. The estimation results obtained from the time-series model developed in this study does not support the conventional argument, regarding the positive correlation between commodity concentration and export instability. It also shows that fluctuations in petroleum export revenues have significant impact on total export earnings instability in Iran.

Suggested Citation

  • Parviz Asheghian, 2015. "Oil Revenues and Export Earnings Instability: The Evidence from Iran," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 15(3), pages 431-442, September.
    • Handle: RePEc:wsi:gejxxx:v:15:y:2015:i:03:n:gej-2014-0059
    DOI: 10.1515/GEJ-2014-0059
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/abs/10.1515/GEJ-2014-0059
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1515/GEJ-2014-0059?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:gejxxx:v:15:y:2015:i:03:n:gej-2014-0059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/gej .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.