The Effect of Real Exchange Rate Volatility on Exportsof High technology Goods (Saikkonen&Lutkepohl approach)

Document Type : Research Article

Authors

Abstract

There are extensive literatures on the impact of exchange rates on economic activity. The effect of exchange rate volatility on exports of high technology is more noticeable. In this context, investigate the effect of the real exchange rate volatility on different variables such as the export is important.The main objective of this paper is to investigate the impact of real exchange rate volatility on exports of Iran’s high technology goods over the period of 1968-2010. To that end, the real exchange rate volatility index has been estimated incorporating with EGARCH (0, 1) model than we using cointegration of Saikkonen & Lutkepohl and FMOLS to investigate the impact of the real exchange rate volatility index, along with other variables of model exports of high technology goods have been evaluated.The main finding of this study show that the real exchange rate volatility variables and export prices have negative and significant effects on exports of high technology goods and variables GDP’s world, GDP’s Iran and trade  of openness have positive and significant effects on exports of high technology goods. The empirical findings of this paper, thebeneficial implications for investors and Policymakers needs to recognize the exact effects of exchange rate volatility on exports of high technology goods are provided.

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