Exploring the Interface: Financial Crisis-Induced Exchange Rate Fluctuations and Implications for Iran's Current Account Deficit (1989-2022)
Journal Title: Journal of Operational and Strategic Analytics - Year 2023, Vol 1, Issue 3
Abstract
Investigation into the nexus between financial crises and the current account deficit within Iran’s economy was conducted, utilising time-series data spanning from 1989 to 2022. Augmented Dickey-Fuller (ADF) test validations endorsed stationarity of all variables upon first differencing. Through the deployment of Johansen's cointegration methodology, a long-term positive impact of real exchange rate oscillations on the trade deficit was discerned. Furthermore, the implementation of an error correction model (ECM) furnished additional perspectives regarding the dynamic interplay amongst the variables under consideration. The findings elucidate the repercussions of financial crises on Iran’s current account deficit, revealing a palpable influence of exchange rate volatilities on economic stability and providing insights into the nuanced macroeconomic relationships amidst periods of fiscal turmoil. The research underscores the exigency for robust fiscal and monetary strategies to navigate the intricacies of economic vulnerabilities and fortify against ensuing financial perturbations.
Authors and Affiliations
Seyed Fakhrddin Fakhrehosseini, Meysam Kaviani
Keywords
Related Articles
- EP ID EP731965
- DOI https://doi.org/10.56578/josa010302
- Views 53
- Downloads 0
Strategic Placement of Nuclear Power Plants in Pakistan: A Complex Polytopic Fuzzy Model Approach with Confidence Level Assessment
Confidence sets provide a robust method for addressing the uncertainty inherent in the membership degrees of elements within fuzzy sets (FSs). These sets enhance the capability of FSs to manage imprecise or uncertain dat...
Addressing the Crucial Factors Affecting the Implementation of Carbon Credit Concept Using a Comprehensive Decision-Making Analysis: A Case Study
As global focus on climate change intensifies, carbon credits have become an important tool for reducing greenhouse gas emissions. Africa, with its abundant natural resources and potential for sustainable development, is...
Risk Assessment in the Transportation of Dangerous Goods: Application of ALOHA and GIS Tools in Montenegro
The transportation of dangerous goods (DG) presents significant risks due to their hazardous chemical properties, which, in the event of an accident, can have detrimental effects on the environment, public health, and in...
Undesirable Input in Production Process: A DEA-Based Approach
The prevalent economic principle of weak disposability has been the foundation for studies in environmental assessment using Data Envelopment Analysis (DEA). Recently, a shift from classical free disposability to weak di...
Enhanced Performance Evaluation Through Neutrosophic Data Envelopment Analysis Leveraging Pentagonal Neutrosophic Numbers
Neutrosophic sets, expanded from the constructs of fuzzy and intuitionistic fuzzy sets, can accommodate degrees of truth, indeterminacy, and falsity for each element. This attribute equips them with an aptitude for a mor...