Investigating the effect of real exchange rate shocks on the quality of Iran's exported agricultural products using the Panel-SVAR model

Document Type : Original Article

Authors

1 Corresponding Author and Assistant Professor, Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran

2 Assistant Professors, Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran.

3 Assistant Professor of Agricultural Economics, Institute of Planning Research, Agricultural Economics and Rural Development, Tehran, Iran

4 Assistant Professor of Agricultural Planning, Economic and Rural Development Research Institute (APERDRI)

10.30490/aead.2024.359790.1460

Abstract

The main objective of this study was to investigate the effect of real exchange rate shocks on the quality of Iran's export agricultural products using the Panel-SVAR model in the form of monthly panel data for 36 countries during the years 2007-2020. The results of the Impulse Response Functions (IRFs) showed that the cumulative quality response of the quality of Iran's agricultural products to shocks of real exchange rate, GDP per capita, the quantity and price of Iran's export agricultural products was positive and significant. Also, the results showed that improving the quality of agricultural products for export was associated with a decrease in both the amount of exported agricultural products and the price of exported agricultural products. Finally, the results of the structural variance decomposition showed that in the first five periods, the variables of quality of exported agricultural products (88%) and the amount of exported agricultural products (10%) had the greatest effect on changes in the quality of exported agricultural products in Iran, respectively. Therefore, efforts towards the sustainable improvement of the quality of agricultural products through the use of advanced technologies, supporting research and development activities in the field of quality improvement, diversifying diversify import target countries and export target countries, and designing a comprehensive pattern of trade with the target countries can be a suitable solution for the government.

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