Mahdieh Rezagholizadeh; Hosna Rajabpour
Abstract
Financial stress and political risk as effective factors on the behavior of economic agents lead to uncertainty and changes in expectations and they have important role for analyzing the country's economic growth. According to the importance of this issue, in present study after construction of the financial ...
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Financial stress and political risk as effective factors on the behavior of economic agents lead to uncertainty and changes in expectations and they have important role for analyzing the country's economic growth. According to the importance of this issue, in present study after construction of the financial stress and political risk indices in Iran, the effects of these two variables on the country's economic growth (per capita GDP growth( during the period 2009 - 2018 have been investigated using seasonal data with ARDL Bounding Test.The results of models showed that the increase in the financial stress has a negative impact on the economic growth and an increase in the political risk index -which means reducing in the political risk in country- has a positive impact on the economic growth. In other words, increasing financial stress in the country during the period 2009 - 2018 will lead to a decrease in per capita GDP growth and decreasing in the political risk leads to improvement in the economic growth.
