The Effect of Exchange Rate on Output, Using Panel Co-integration approach: Case study of Selected competing Countries with Iran in 2020 Vision

The main aim of this is to survey the effect of real exchange rate changed on real gross domestic product in selected countries. Edwards (1986) model have been considered for this survey. Panel data is used for the period 1993-2010. Im Pesaran، Shin stationary، and Pedroni and Kao co ntigration tests are used to verify the existence of long run relationship among variables. Based on Hausman test، fixed effect model for Panel data is used. The estimated coefficient is statistically significant positive for the effect of devaluation on output. The results show the effect of monetary and fiscal policies on output is positive.