Payame Noor University Economic Growth and Development Research 2228-5954 9 36 2019 09 23 Investigation the Effects of Price and Non-Price Factors on Iran's Non-Oil Exports: The Latent Variable Approach Investigation the Effects of Price and Non-Price Factors on Iran's Non-Oil Exports: The Latent Variable Approach 35 56 5714 10.30473/egdr.2019.43124.4983 FA Somaye Alikarami Ph.D. Student in Economics, Shiraz University, Shiraz, Iran Ebrahim Hadian Associate Professor, Department of Economics, Shiraz University, Shiraz, Iran Parviz Rostamzadeh Assistant Professor, Department of Economics, Shiraz University, Shiraz, Iran Ahmad Sadraei Javaheri Associate Professor, Department of Economics, Shiraz University, Shiraz, Iran Journal Article 2018 12 22 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. 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. https://egdr.journals.pnu.ac.ir/article_5714_c91f9664fd3f9631a3c7269817384520.pdf