Journal of Economics Theory

Year: 2010
Volume: 4
Issue: 4
Page No. 103 - 108

The Study of the Effects of the Increasing Exchange Rate on Country Industries Export

Authors : S. Homayooni and F. Karimzadeh

Abstract: In today's world that globalization is one of the most developments in process each country needs to commercial strategy to stay in global markets and gain more market share or at least to keep present situation and this is demands that country would have exact knowledge about the structure of market and the development in any part of time. Otherwise, it's going out from competition circulation in new world convergence movement. In the free economy, exchange rate have a key role in keeping or eliminating on important part of home industries as non-optimal exchange rate shows welfare negative effects through eliminating home industries competition power and waste of capital and unemployment. So, beneficent of exporters, importers and exchange rate are 3 sides of a triangle that has become one of the most controversial of economic issues. So in this study, we first by examining the concentration index between large industries of Iran, examine the quality of market distribution between present organizations in the industry and after knowing their effects and separate industries in to competition levels and monopoly, we will examine the effects of increasing exchange rate on export at each group of separated industries. For this reason, we specified export supply function to them and in next level will proceed to evaluate this effects with use of panel data procedure. In this study, statistical sociology is 2 digit subgroups of industry in last international classification emending of occupation (ISIC) and examined in period of 2000-2008. Observed results indicates that export exchange rate do as a incentive export and has meaningful effect in exchange income and tension export in comparison with increasing exchange rate that is more than industries with high concentration rate in competitive industries.

How to cite this article:

S. Homayooni and F. Karimzadeh, 2010. The Study of the Effects of the Increasing Exchange Rate on Country Industries Export. Journal of Economics Theory, 4: 103-108.

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