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Exchange Rate Impacts on Investment of Manufacturing Sectors in Iran

Author

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  • Mohammad Reza Lotfalipour
  • Maliheh Ashena
  • Maryam Zabihi

Abstract

As a major factor in the development process and economic policies evaluation, investment and its growth rate have been considered in many studies. This paper examines the relationship between changes in exchange rate and the investment of manufacturing sectors in Iran during1995 to 2009 using the panel data approach. So, the annual data of manufacturing sectors is used to examine the impact of real exchange rate fluctuations on industrial investment. It is found a negative and statistically significant impact of real exchange rate movements on manufacturing investment.

Suggested Citation

  • Mohammad Reza Lotfalipour & Maliheh Ashena & Maryam Zabihi, 2013. "Exchange Rate Impacts on Investment of Manufacturing Sectors in Iran," Business and Economic Research, Macrothink Institute, vol. 3(2), pages 12-22, December.
    • Handle: RePEc:mth:ber888:v:3:y:2013:i:2:p:12-22
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    References listed on IDEAS

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    Cited by:

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    2. Emmanuel Buabeng & Enock Kojo Ayesu & Opoku Adabor, 2019. "The Effect of Exchange Rate Fluctuation on the Performance of Manufacturing Firms: An Empirical Evidence from Ghana," Economics Literature, WERI-World Economic Research Institute, vol. 1(2), pages 133-147, December.
    3. Adam Andrzej Zając & Michał Wielechowski & Krzysztof Smoleń & Dariusz Karaś, 2024. "Macroeconomic Determinants of Investment Decisions for Medium and Large Enterprises in Poland’s Manufacturing Sector," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 74-92.
    4. Tzu-Yi Yang & Chieh Liu & Yu-Tai Yang & Ssu-Han Chen, 2023. "The dynamic effect of trading between China and Taiwan under exchange rate fluctuations," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

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    More about this item

    Keywords

    Manufacturing sectors; Exchange rate; Panel Data; Iran.;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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