In this paper the effects of the real exchange rate and income on automobile industry export revenue and import
spending are examined in Iran from 1992 to 2013. Separate estimates of export revenu e and import spending
functions prove more revealing than estimates of the trade balance. Vector autoregressions capture dynamic
adjustments to exchange rate and income shocks. The results according the separate models indicate that
depreciation affects both the export revenue and import spending in short run. As well as that, the effect of home
income demonstrates in the import model and the influence of foreign one is not confirmed.
کلید واژگان :
Trade Balance, Real Exchange Rate, Automobile Industry, J-curve
