mansour heydari; Hossein Asgharpur; Davoud Hamidi Razi; sadeq Rezaie
Abstract
The main purpose of the present study is to investigate the effects of currency regimes on economic growth with emphasis on the role and intermediation of inflation in Iran in different business cycles. In this regard, using the Markov Switching method in the period 1340-1394, the objective has been ...
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The main purpose of the present study is to investigate the effects of currency regimes on economic growth with emphasis on the role and intermediation of inflation in Iran in different business cycles. In this regard, using the Markov Switching method in the period 1340-1394, the objective has been studied.The estimation results show that the Iranian economy has three regimes, moderate growth and high economic growth, so that the moderate growth regime should use a fixed exchange rate regime، to increase economic growth by increasing stability and increasing investment. During the recession and in the range of -0.16 to 14% of inflation, the fixed system is suitable and in the rest of the floating-rate inflation rates it is suitable for economic growth by increasing the competitiveness of domestic products against foreign products that have been weakened due to inflation Estimated results for high growth period show that in the inflation range of 5 to 44%, the floating system has the best performance for economic growth due to increased competitiveness of domestic production against foreign products.
Economic Growth
Mohsen Mehrara; Sadeq Rezaei Bargoshadi
Volume 6, Issue 23 , May 2016, , Pages 114-89
Abstract
This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth ...
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This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth are respectively ratio of imported capital and intermediate goods toGDPand labor force which lead to an increase in growth. Endogenous growth factors which are the factors contributing to formation of human capital, not possess a large role in growth process. Investments, especially government investment affects contrary to were expected. In fact, low quality, and productivity of investments and poor allocation reduced importance of investment’s quantity. The nature of Iran’s economy has not endogenous and dynamic features and predominantly, growth has been made by injecting of exogenous sources. Emphasis on formal and informal educational orientation in the quality of human capital instead of increasing in quantity of education is recommended.
