Fluctuation of exchange rate and its deviation from equilibrium path are one of the most important macroeconomic variables that is affected by different side of economic sectors. Whereas, the Exchange rate fluctuation and its deviation from equilibrium path haven’t the same and similar effects on all of the economic sectors, and considering eminent importance of industrial development on the development of the country; This paper examines and evaluates the exchange rate fluctuation and its deviation from equilibrium path on value added of industrial sectors. So first we calculate deviation of real exchange rate from long run equilibrium path by use of purching power parity (Crumm index) Then, in order to calculate short run exchange rate flactuation, In order to avoid non stationery of some of the variables used in these models, and other problems, we have used a new econometric method; integrated auto regressive distribution lag (ARDL); and then considered the effects of exchange rate fluctuations and its deviation from equilibrium path on value added of industrial sectors by use of model. This paper shows that fundamental hypothesis; posteriori reverse relationship between real exchange rate deviation of equilibrium path and value added of industrial sectors; confirmed in model. Besides every equation, present the reverse relationship between short run exchange rate fluctuation and value added of industrial sectors.

Economic development in today's world is a concern of many states. The important issue is that, first, how states can be on the path to development, and, second, what procedure can take place in order for them not to fall out of orbit. The results of development in Iran in the 1960s and the growth and reconstruction taken place at this period reveal that development may be a temporary achievement, a process after which the crisis and acute financial and economic conditions were experienced. Now, the question we seek to answer is: Why did the economic development program in Iran in the Pahlavi era fail despite the initial positive efforts put forth in the 1970s? This paper tries to answer this question by using inclusive institutions and exploitative institutions concepts of Oglu and Robinson and applying them in Iran of the 1960s and 1970s, and to show that the upper hand of politics can cut the roots of economic development programs and abort a development process and path and cause deviation. This study is conducted using a descriptive-analytical method. The required data are gathered using library study.