Evaluating the Effects of Real Exchange Rate Fluctuations on Export of Technical and Engineering Services in Iran

Export of Technical and Engineering Services is as one of the main element for attracting international resources. This variable is affected by macroeconomic environment of countries and the exchange rate fluctuations is the main effective variable in this regards. This study tries to evaluate the effects of the real exchange rate fluctuations on export of Technical and Engineering Services among Iran and its major partners using gravity model framework. Hence the panel data for 15 trade major partners of Iran during 2003-2013 and Poisson-pseudo maximum likelihood method has been used. The results show that the real exchange rate fluctuations, the distance variable and the dissimilar economic structures have negative effect and also the per capita income of Iran and its trade partner, the common border and the common religion have positive effect on export of Technical and Engineering Services among Iran and its major partners during the period. Finally, same economic policies (monetary and fiscal policies) have not had significant effect on export of Technical and Engineering Services. So pay attention to the real exchange rate instead nominal exchange rate by policy makers, can lead to sustainable growth in export of Technical and Engineering Services.