IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/0701692.html
   My bibliography  Save this paper

Balassa?Samuelson Effect in Iran

Author

Listed:
  • Saleh Ghavidel

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

  • Mahmoud Mahmoudzadeh

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

  • Hamideh Radfar

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

Abstract

Deviations from purchasing power parity because a deviation of productivity is Balassa?Samuelson effect. The Balassa?Samuelson effect depends on inter-country differences in the relative productivity of the tradable and non-tradable sectors. According to this hypothesis, Imai (2010) make a model and measurement Balassa?Samuelson effect in Japan during 1970-1955 when exchange rate in Japan is fixed. In this paper we measurement Balassa?Samuelson effect in Iran economic. The result shows that Balassa?Samuelson effect in Iran is -2.1. Then devaluation of the national currency in Iran according to Balassa?Samuelson effect would be equal to 2.1 in annual, while devaluation of the national currency in Iran 13% in a year.

Suggested Citation

  • Saleh Ghavidel & Mahmoud Mahmoudzadeh & Hamideh Radfar, 2014. "Balassa?Samuelson Effect in Iran," Proceedings of International Academic Conferences 0701692, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:0701692
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/12th-international-academic-conference-prague/table-of-content/detail?cid=7&iid=47&rid=1692
    File Function: First version, 2014
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Balassa?Samuelson effect; purchasing power parity; productivity gap; tradable and non-tradable sectors;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:sek:iacpro:0701692. 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: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    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.