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.
Economic Growth
Ali Rezaei; Tahmasb Mazaheri; Majid Tavasoli
Abstract
Political and economic policymakers believe that the development of good governance plays a key role in the political and economic development of countries. Therefore, it is important to identify the effective factors on the efficiency of good governance in order to adopt appropriate policies for promoting ...
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Political and economic policymakers believe that the development of good governance plays a key role in the political and economic development of countries. Therefore, it is important to identify the effective factors on the efficiency of good governance in order to adopt appropriate policies for promoting the political and economic system, because through the promotion of good governance, economic growth can be achieved. According to the views of institutionalist economists, one of the factors influencing institutional development is the independence of the Central Bank. Central Bank autonomy, through the creation of institutional structures and institutions, changes the other variables, such as state financial discipline, increased transparency and accountability, and these mechanisms help to improve good governance. In this study, the relationship between central bank independence and good governance indicators using GMM method and correlation coefficient during the period of 2002 to 2015 were investigated. In this research, the International Risk Management Index (ICRG) has been used as a good governance indicator, which includes ranking 22 variables in three sub-categories of different political risk, financial risk and economic risk, and the Mathew Index (2006) has been used as an indicator of the independence of the central bank. The Central Bank's Independence Index has been analyzed in three areas of monetary policy independence, political independence and financial independence. The findings of the research showed that the independence of the central bank has a significant effect on good governance, so that the increase in the independence of monetary policy, political independence and financial independence leads to a decrease in political, financial and economic risk.
International Commerce
Omolbanin Jalali; Habib Ansari Samani; Madjid Hatefi Madjumerd
Volume 8, Issue 29 , December 2017, , Pages 157-174
Abstract
The aim of this study at first is to study the effective factors of FDI and then the estimation of these effects during 1983-2014. In this regard the causality relationship between FDI and political risk, GDP, trade openness index, inflation and exchange rate, has been investigated through Hsiao and ...
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The aim of this study at first is to study the effective factors of FDI and then the estimation of these effects during 1983-2014. In this regard the causality relationship between FDI and political risk, GDP, trade openness index, inflation and exchange rate, has been investigated through Hsiao and Toda-Yamamoto tests. Then using a smooth transition regression model, the effect of determinants of foreign direct investment will estimated. In addition, results show that political risk, GDP and exchange rate are statistical cause of FDI, but trade openness index and inflation have no significant effect on foreign direct investment. In addition, the nonlinearity of model was also verified. The model showed that the FDI function can be investigated in the form of a structure with a two regime with threshold value of $ 2,000 million. Political risk in both regimes has a negative effect on foreign direct investment, but with the arrival to high regime, the sensitivity will be reduced. This relationship between the GDP and FDI is opposite.
