The long‐run relation between a black market exchange rate and the trade balance: Evidence from Iran
Mohsen Bahmani‐Oskooee
(Department of Economics, The University of Wisconsin‐Milwaukee, Milwaukee, Wisconsin, USA)
1213
Abstract
This paper investigates the long‐run relationship between Iranian trade balance and the black market value of Iranian rial by employing cointegration technique. It is shown that in a oil producing country like Iran due to rent‐seeking opportunities, depreciation of the rial in the black market has an adverse effect on the Iranian trade balance.
Keywords
Citation
Bahmani‐Oskooee, M. (1999), "The long‐run relation between a black market exchange rate and the trade balance: Evidence from Iran", Journal of Economic Studies, Vol. 26 No. 2, pp. 121-130. https://doi.org/10.1108/01443589910258461
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited