Version 1
: Received: 25 May 2024 / Approved: 27 May 2024 / Online: 27 May 2024 (09:57:07 CEST)
How to cite:
Azizi, J. The Relationship between Exchange Rate, Interest Rate, and Tehran Stock Exchange Dividend and Price Index (TEDPIX). Preprints2024, 2024051712. https://doi.org/10.20944/preprints202405.1712.v1
Azizi, J. The Relationship between Exchange Rate, Interest Rate, and Tehran Stock Exchange Dividend and Price Index (TEDPIX). Preprints 2024, 2024051712. https://doi.org/10.20944/preprints202405.1712.v1
Azizi, J. The Relationship between Exchange Rate, Interest Rate, and Tehran Stock Exchange Dividend and Price Index (TEDPIX). Preprints2024, 2024051712. https://doi.org/10.20944/preprints202405.1712.v1
APA Style
Azizi, J. (2024). The Relationship between Exchange Rate, Interest Rate, and Tehran Stock Exchange Dividend and Price Index (TEDPIX). Preprints. https://doi.org/10.20944/preprints202405.1712.v1
Chicago/Turabian Style
Azizi, J. 2024 "The Relationship between Exchange Rate, Interest Rate, and Tehran Stock Exchange Dividend and Price Index (TEDPIX)" Preprints. https://doi.org/10.20944/preprints202405.1712.v1
Abstract
One of the factors in the mobility of a nation's economy is the stock exchange which plays a decisive role in sustainable economic development. Accordingly, and for the special place of the stock exchange in the economy, we decided to investigate the relationship between the interest and exchange rates and the Tehran stock exchange dividend and price index (TEDPIX). Using the autoregressive distributed lag method, the present study is conducted utilizing the annual data over the period of 1991 to 2020. The results indicate that the exchange rate has a positive long-run relationship with the TEDPIX, but no statistically significant relationship was found between the TEDPIX and the interest rate. Furthermore, the results of the estimation of the error correction model show that 30.786% of the disequilibrium in each period is adjusted to the long-run equilibrium.
Keywords
Tehran Stock Exchange Dividend and Price Index (TEDPIX); Exchange Rate; Interest Rate; ARDL Model; Error Correction Model
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
