Factors in the emergence of a market economy

Mahnaz Rabei¹ Mojtaba Hosseini Ashtiani²

1) Assistance Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
2) Master Student in Accounting, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

IOI Code : XYBE-ZKGZH
Publication : 5th International Conference On Modern Researchs in Management, Economics & Accounting (5meaconf.com)
Abstract :
    In this paper the effect of the exchange rate (ERR) in the cycle of capital flows, growth rates for private credit and the dollar in sync with the rise of market economies have been investigated. We have considered two different parts, including 12 and 22, respectively, in 1980-2010 and 1994-2008 periods. We have a model to estimate PSTR to assess whether the impact of cyclical effects of ERR on credit under the driving force of capital flows is located or not. Our findings are tripartite. First, ERR has no effect on the components of capital flows does not have wheels. Second, the expansion of credit in economies with fixed currencies and rotation. Third, capital flows or cross-flows during the periods of low, economies with fixed exchange rate structures, higher level of sync with the dollar showed. When output currents are measurable, ERR any long-term impact on the level of sync with the dollar. These results argue that ERR should be an important variable in understanding the political composition of domestic credit expansion and sync to cope with dollars in debt.

Keywords : a market economy capital cash flows exchange rates and structures driving force credit