Document Type : Research Paper

Authors

1 Phd student in Economics, Esfahan University

2 Associate Professor, Allameh Tabataba`i University

Abstract

In recent years, researchers have been increasingly noticed economic growth and  its determinants. Exchange rate and its volatility are important factors in determining  a country's economic growth. Various studies in this regard have shown contradictory results concerning the effects of exchange rate volitality on economic growth. The purpose of this study, Considering the importance of   this issue, is to evaluate the nonlinear effects of real exchange rate uncertainty on economic growth (oil and non-oil) from 1369/1 to 90/4. In this study, economic growth is a function of real exchange rate uncertainty, investment rate, active population growth and  growth rate of human capital. To estimate the amounts of real exchange rate uncertainty, GARCH In Mean model is used. With the implementation of a program in eviews, a certain level of exchange rate volatility was calculated using criteria of standard deviation minimum. Then, GMM model is used to determine the effects of this volatility on economic growth. The results show that the real exchange rate uncertainty  up to a certain level, which is investigated in this research, has a negative effect on economic growth, whether oil or non-oil.

Keywords

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