International Commerce
somaye alikarami; Ebrahim Hadian; parviz rostamzadeh; Ahmad Sadraei Javaheri
Abstract
The purpose of this study has been to consider the effects of non-price factors along with price factors on the demand of Iranian export from 1988 to 2017.In this research, a single error correction model is used to evaluate the short-term dynamics and long-term effects simultaneously. Moreover, in this ...
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The purpose of this study has been to consider the effects of non-price factors along with price factors on the demand of Iranian export from 1988 to 2017.In this research, a single error correction model is used to evaluate the short-term dynamics and long-term effects simultaneously. Moreover, in this study compare to previous researches, a more flexible approach has been included in the export function which is based on the structural time series' patterns which are the trends that express the effects of non-pricing factors. Then, the OXmetric software and the Kalman filter is utilized to estimate the amount of trend in each year, and the effect of each factor on the trend component is evaluated by the Ordinary Least Square Method. The results indicate that the price elasticity of the export is low. Also, the impact of non-pricing factors such as globalization, total productivity of production factors, innovation, electronic commerce and foreign direct investment on non-oil exports were assessed. The results have shown the significant effect of all factors and the negative impact of economic freedom, openness and foreign direct investment on the implicit process export.
