Asma Koochakzadeh; Sayyed Abdolmajid Jalaee
Volume 4, Issue 16 , November 2014, , Pages 20-11
Abstract
Volatility in currency exchange rate and the resulting uncertainty is one of the major variables in macroeconomics that affects different economic sectors in various aspects. Since these fluctuations and the resulting uncertainty do not affect all economic sectors in a similar way, this study aims to ...
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Volatility in currency exchange rate and the resulting uncertainty is one of the major variables in macroeconomics that affects different economic sectors in various aspects. Since these fluctuations and the resulting uncertainty do not affect all economic sectors in a similar way, this study aims to investigate the effect of uncertainty in the actual currency exchange rate on development of economic sectors in Iran using combined data over the period between 1991 and 2011 through panel method. The results obtained from this study indicate that uncertainty in the exchange rate has negative and significant effects on development of economic sectors. This effect was higher in industry, mining, agriculture, transportation and communication, hotels and restaurants, and construction sector with -0.51, -0.40, -0.35, -0.27,-0.24, and -0.23 respectively.
