Study of real effective exchange rate on agricultural gross domestic product and export

The current study attempted to investigate the effects of real effective exchange rate on the gross national product and export in the agricultural sector. The time series data for the period of 1976-2008 were used. Data collected from Iran's Central Bank annual reports, the Offices of Commerce annual statistics and International Monetary Fund (IMF). Real effective exchange rates were determined for the period of study and their effects were examined on the agricultural gross domestic product and its export. Results showed that real effective exchange rate, volume of currency in circulation, the government expenses and agricultural exports had positive effect on gross domestic product. In addition, it was found that increase in agricultural gross product, real effective exchange rate, the volume of money in circulation and government expenses would increase agricultural exports.