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Title

THE EFFECT OF EXCHANGE RATE VOLATILITY ON EMPLOYMENT IN IRAN

Writers

EMAMI KARIM | MALEKI ELAHEH

Pages

 Start Page 95 | End Page 112

Abstract

 One of the most important and challenging topics in macroeconomics is the effect of EXCHANGE RATE volatility on macroeconomic variables especially EMPLOYMENT. The main purpose of present research is to examine the hypothesis which is EXCHANGE RATE volatility has a negative effect on Iran’s EMPLOYMENT. In this framework, first using GARCH we’ve measured EXCHANGE RATE volatility during time period 1974-2007 and then by using OLS we’ve examined the effect of this variable on the EMPLOYMENT. Based on the obtained results, the real EXCHANGE RATE volatility has a negative and significant effect on the EMPLOYMENT. Other findings show GDP and real capital stock has a positive and significant effect on the EMPLOYMENT.

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