Mahdi Yazdani; Raana Shokouei Donighi
Abstract
Macroeconomic instability is an important obstacle to the real growth of the economy and its sustainability. In this article, two methods have been used to investigate the impact of transparency on macroeconomic stability in emerging economies using simultaneous equations with panel data for the ...
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Macroeconomic instability is an important obstacle to the real growth of the economy and its sustainability. In this article, two methods have been used to investigate the impact of transparency on macroeconomic stability in emerging economies using simultaneous equations with panel data for the period 1998-2014. In the first method, two equations for central bank transparency and stability have been considered and the mutual effect of these two variables has been investigated. In the second method, three equations for the variables of stability, including inflation, production gap and real exchange rate gap, and one equation to measure the effect of these variables on transparency are used simultaneously. The results of the study show that the transparency of the central bank is one of the factors affecting the stability of the macroeconomics. Also, the square of the central bank's transparency variable has a negative and significant relationship with macroeconomic stability. Meanwhile, the transparency of the central bank has an inverse relationship with inflation and the real exchange rate gap, and there is a two-way relationship between the transparency of the central bank and inflation. Finally, the effect of central bank transparency on production gap and vice versa is not significant.
Mehdi Yazdani; Mojtaba SharifiShifteh
Abstract
During recent years, the growth of international trade has been more than that of world output, and countries have shown more interest in forming regional unions and agreements to increase their trade. The aim of this study is to estimate the net effect of D8 formation on trade of its member countries. ...
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During recent years, the growth of international trade has been more than that of world output, and countries have shown more interest in forming regional unions and agreements to increase their trade. The aim of this study is to estimate the net effect of D8 formation on trade of its member countries. In this regards, a gravity model has been applied using panel data method for period 1990-2014, in accordance with a Difference-in-Differences (DID) approach and Poisson-Pseudo maximum likelihood method. The D8 countries are selected as target group and select member countries of Organization of Islamic Cooperation are chosen as control group. Our Results show that the net effect of D8 formation on trade among its member countries is positive and significant. Also, the bilateral trade among member countries has had a direct relationship with their size and common language and inverse relation with the distance between them.
Mehdi Yazdani; Hamed Pirpour
Abstract
In general, development of infrastructures and implementation of economic projects require financing. However, the exchange rate fluctuations lead to increasing costs of financing through conversion, transaction, economic, credit and liquidity risks. Hence, in this study, the effect of the exchange rate ...
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In general, development of infrastructures and implementation of economic projects require financing. However, the exchange rate fluctuations lead to increasing costs of financing through conversion, transaction, economic, credit and liquidity risks. Hence, in this study, the effect of the exchange rate volatilities has been investigated on financing practices of companies listed in Tehran Stock Exchange using autoregressive distributed lags method during monthly period 2006-2015 and then, the effect of this variable has been determined on foreign direct investment (FDI) inflow in economic sectors of Iran using panel data method during 1994-2015. According to the results, the value of assets, stock price index, economic freedom index, inflation rate and exchange rate volatilities are identified as determinants of firms’ financing. Also, the pattern of FDI is a function of sectoral value-added growth, capital productivity index, inflation rate, economic freedom index and the exchange rate volatilities where the coefficients are significant and consistent with theoretical expectations. Furthermore, increasing exchange rate fluctuations can decrease domestic and foreign financing because exchange rate fluctuations lead to different risks.
