Political, Financial and Economic Instability in the Iran Economy: Dimensions and Factors

Document Type : Research

Authors

Assistant Professor of Economic, Department of Economics, Faculty of Business and Economics, Persian Gulf University, Bushehr, Iran.

Abstract

One of the most important goals of any country is stability, which occurs with stability, investment, economic growth and other macro goals; it can provide the ground for development. This study tries to investigate the dimensions and factors affecting instability in the Iran economy. For this purpose, in addition to the analysis of instability indices (economic, financial and political), Granger causality test and VAR model have been used. Instability analysis shows that after the Iran–Iraq War, all three indices of political, financial and economic risk have decreased, but during the last three decades, political risk in the country has increased and economic risk is constant and financial risk has decreased. The results of the causality test show that political instability is the culmination of economic and financial instability. Impulse response functions show that economic and financial instability increases by increasing political instability.

Keywords


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