Improvement of economic growth is direct effect of exportsWednesday, Oct 25, 2017Increasing exports as a component of GDP naturally leads to the improvement of economic growth, which is referred to as the direct effect of exports.
(SHADA: TEHRAN) -- Of course, the effect of exports on growth is beyond its direct effect, and the increasing presence in global markets and competitiveness resulting from improved economic scales will lead to more use of capacities, productivity savings, product diversity, manufacturing technology upgrades, and improvement of management processes, all of which form the indirect effect of exports on growth, said Ali Saleh Abadi, Managing Director of the Export Development Bank of Iran.
These achievements indicate the importance of export development both in the field of economic literature and economic policy dimension, and today, by strengthening international monetary and financial foundations, monetary policies, in addition to their important role in the national arena, are also of particular importance in the development of economic relations in the international arena, Saleh Abadi stated.
To develop export it is necessary to strengthen the coordinated financial and monetary system, and monetary policies and the appropriate use of monetary instruments will affect the performance of developing economies, the general level of prices, and the balance of payments, he emphasized.
By explaining the bank interest rate, exchange rate and credit channel, these policies affect the behavior of national and transnational economic variables, and it is necessary to use financial and currency policies simultaneously to obtain satisfactory results, Saleh Abadi noted.
He further said that in order to achieve a certain number of economic goals, it is necessary to define the appropriate combination of monetary, financial, and currency policies, and there must be an appropriate coordinate between them.