IDEAS home Printed from https://ideas.repec.org/a/bco/mbraaa/v3y2016p4-13.html
   My bibliography  Save this article

The effect of real exchange rate on unemployment

Author

Listed:
  • Zahra Bakhshi

    (Shiraz Branch, Islamic Azad University, Shiraz, Iran)

  • Mehrzad Ebrahimi

    (Shiraz Branch, Islamic Azad University, Shiraz, Iran)

Abstract

Unemployment is one of the problems that global economics, especially the economy of developing countries such as Iran is faced with. Therefore, there have been many studies to investigate the variables which affect unemployment in macroeconomics. Considering exchange rate volatility in recent years which have affected most of major variables of economy in Iran, this study tried to investigate the relationship between exchange rate and unemployment in Iran using the annual data of 30 years (from 1981 to 2012). To achieve the objectives of the study, autoregressive econometric model with distributed lag was used to assess the relationship between real exchange rate and unemployment. This model consisted of five main variables, namely unemployment rate, exchange rate, export, import, and gross domestic product. The results of the study demonstrated that economic growth had a significant and positive effect on unemployment. In addition, it was shown that there was a negative relationship between unemployment and exchange rate.

Suggested Citation

Handle: RePEc:bco:mbraaa::v:3:y:2016:p:4-13
DOI: 10.33844/MBR.2016.60281
as

Download full text from publisher

File URL: https://api.eurokd.com/Uploads/Article/769/MBR.2016.60281.pdf
Download Restriction: no
File URL: https://libkey.io/10.33844/MBR.2016.60281?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
---><---

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:bco:mbraaa::v:3:y:2016:p:4-13. 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: Sara Gunen (email available below). General contact details of provider: .

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.