Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/57774 
Year of Publication: 
2012
Series/Report no.: 
Economics Discussion Papers No. 2012-24
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
This paper provides new evidence on the long-run relationship between exports and imports of the Iranian economy by employing bounds test approach to level relationship. In Iran, there have been many unusual policy changes and/or external shocks to the economy which resulted in the occurrence of multitude of structural breaks in macroeconomic variables. By taking these breaks into account, the results of the present study reveal that there is long run equilibrium relationship between imports and exports over the sample period, 1960-2007. This result confirms the finding of Arize (Imports and Exports in 50 Countries: Tests of Cointegration and Structural Breaks, 2002) by employing bounds tests to level relationship and suggests that current account deficits in Iran are sustainable.
Subjects: 
Exports
imports
current account
bounds test
Iran
JEL: 
C22
F10
F32
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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