Economic Growth
Yeganeh Mousavi Jahromi; Hadi Ghaffari; Mehdi Jaloli
Volume 8, Issue 31 , June 2018, , Pages 13-28
Abstract
The current study, using the VAR model, tries to explore the effects and consequences of economic instability on economic growth in Iran during the 1981-2011 periods using the principle components analysis. In this study, using the principle components analysis (PCA), an indicator of economic instability ...
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The current study, using the VAR model, tries to explore the effects and consequences of economic instability on economic growth in Iran during the 1981-2011 periods using the principle components analysis. In this study, using the principle components analysis (PCA), an indicator of economic instability was built and then the impact of this indicator on economic growth of Iran was examined. The findings show that Only the importance of labor in the Agricultural sector but in other sectors more than other variables, physical capital is the more important in explaining economic growth. In all areas of macroeconomics, variable economic instability negative impact on economic growth in the sector. Four parts macroeconomic indicator of economic instability in the analysis of variance, respectively, in the fields of Industry and Minerals, Services, Agriculture and Oil and Gas exploration is more important.
