2024 : 6 : 23
mohammad abdi seyyedkolaei

mohammad abdi seyyedkolaei

Academic rank: Associate Professor
Education: PhD.
Faculty: Science
Address: university of mazandaran
Phone: 011-35302533


Does Agriculture Price Index Respond to Exchange Rate Fluctuations in Iran?
Agriculture sector; Exchange rate; Iran’s economic; MGARCH method
Journal international journal of agricultural management and development
Researchers mohammad abdi seyyedkolaei ، amir mansour tehranchian ، َAhmad Jafari Samimi ، seyed mojtaba mojaverian


Since some raw materials, semi manufactured, intermediate and capital goods in agricultural sector are imported, the exchange rate fluctuations can affect the cost price of products in this sector. Recently, we are facing considerable fluctuations in exchange rate that has an important impact on all sectors including the agriculture. As a result of an increase in import prices in agricultural raw materials, the exchange rate fluctuates. In other words, this relationship is strengthened by lower domestic supply due to the stimulation of the exports of agricultural products induced by an increase in exchange rate. The present study deals with the impact of exchange rate fluctuations on agricultural price index in Iran using MGARCH method. The results show that the past shocks of exchange rate have a positive impact on agriculture price index at the 1% significance level. Moreover, despite the fact that the current fluctuations of agriculture price index do not relate to its past fluctuations, the past fluctuations of exchange rate have a positive impact on current fluctuations of exchange rate.