دورية أكاديمية
Substitution of anchor currency: challenges for trade between Iran and its major trading partners
| العنوان: | Substitution of anchor currency: challenges for trade between Iran and its major trading partners |
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| المؤلفون: | Zahra Zahmani, Milorad Jovović, Srdjan Redzepagić, Marianna Siničáková |
| المصدر: | Technological and Economic Development of Economy, Vol 27, Iss 4, Pp 833-851 (2021) |
| بيانات النشر: | Vilnius Gediminas Technical University, 2021. |
| سنة النشر: | 2021 |
| المجموعة: | LCC:Economic growth, development, planning LCC:Business |
| مصطلحات موضوعية: | euro anchor, currency basket, international trade, oca theory, Economic growth, development, planning, HD72-88, Business, HF5001-6182 |
| الوصف: | The aim of the paper is to find out whether euro is a convenient substitution for U.S. dollar as an anchor currency for Iranian rial and whether this replacement would affect Iran’s international trade positively. We explore these effects via Optimum Currency Area (OCA) theories using generalized least square from 2000 to 2018. Based on OCA index, euro would be a good substitution for U.S. dollar as an anchor for Iranian rial. In addition, gravity model and Generalized Method of Moments estimation confirm that substitution of U.S. dollar by euro would improve bilateral trade between Iran and its major trade partners especially the European Economic and Monetary Union (EMU). Furthermore, we confirm that a basket containing main currencies (euro, U.S. dollar, yuan, Russian rubble) would be more efficient than a single currency anchor however euro should be prominent in the basket. Such a change of anchor could positively contribute to reduction of transaction costs, diversification of external risk, rise of mutual trade exchanges between Iran and the EMU or the EU and consequent economic growth of trade partners. The paper contributes to the existing literature by comprehensive methodological approach how to identify an appropriate anchor currency. First published online 2 June 2021 |
| نوع الوثيقة: | article |
| وصف الملف: | electronic resource |
| اللغة: | English |
| تدمد: | 2029-4913 2029-4921 |
| العلاقة: | https://journals.vgtu.lt/index.php/TEDE/article/view/14977Test; https://doaj.org/toc/2029-4913Test; https://doaj.org/toc/2029-4921Test |
| DOI: | 10.3846/tede.2021.14977 |
| الوصول الحر: | https://doaj.org/article/eb13b8cfd0964284a0dd0fc4e0d223cfTest |
| رقم الانضمام: | edsdoj.b13b8cfd0964284a0dd0fc4e0d223cf |
| قاعدة البيانات: | Directory of Open Access Journals |
Full Text Finder | تدمد: | 20294913 20294921 |
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| DOI: | 10.3846/tede.2021.14977 |