hamid khavari; Mohammad Ali Falahi; Narges Salehnia
Abstract
In Iran, oil supplies the needed fuel and is the main source of foreign exchange earnings. Thereby, any volatility in oil prices will affect Iran's foreign exchange earnings at first and economic growth through time. This study, using Structural Vector Auto Regression (SVAR) model, investigates the effects ...
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In Iran, oil supplies the needed fuel and is the main source of foreign exchange earnings. Thereby, any volatility in oil prices will affect Iran's foreign exchange earnings at first and economic growth through time. This study, using Structural Vector Auto Regression (SVAR) model, investigates the effects of oil price volatility on economic growth of Iran through some institutional, monetary and financial variables during the period 1981-2017. The results show that the impulse of oil price volatility has a negative reaction from the growth of production. The index of democracy's reaction to the oil volatility is negative and, given its direct relation to production growth, overall production growth is reduced. Similarly, as for the government expenditures, it leads to reduced production growth. But the M2 has a positive reaction to the volatility of world crude oil prices and also has a positive effect on the production growth in the short run. The results also show that the most important variable affecting production growth changes in both the short and long run is the impact of government expenditures changes. Then, for achieving sustainable growth and using private sector dynamics, the assignment of public sector companies to the private sector based on the Article 44 of the Constitution should be followed.
Mehdi Taghavi; Sholeh Bagheri; Parisa Mohajeri
Volume 1, Issue 4 , December 2012, , Pages 54-37
Abstract
Many studies have shown positive contribution of financial sector development to economic growth. However some new results indicate that the previous findings do not hold especially in recent years. The main purpose in this study is to examine the structural break between the financial sector development ...
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Many studies have shown positive contribution of financial sector development to economic growth. However some new results indicate that the previous findings do not hold especially in recent years. The main purpose in this study is to examine the structural break between the financial sector development and economic growth in different countries with different levels of income by using the index of bank credit to private sector. For this purpose we use an empirical endogenous growth model and a panel data consisting of 45 countries for 48 years, and test for nonlinearity. We found endogenously structural changes in the relationship of different income groups. The results confirm that the structural changes have occurred, and that the points of structural changes vary with the level of economic development.
