The Impact of Political, Financial and Economic Risk on Economic Growth: Evidence from Iran's Economy.

Document Type : Original Article

Authors

1 Assistant professor, School of Business and Economics, Persian Gulf University, Busheher, Iran

2 Assistant professor, Faculty of Economics, University of Sistan and Baluchestan, Zahedan, Iran

3 Phd Student, Faculty of Economics, University of Sistan and Baluchestan, Zahedan, Iran

Abstract

Iran's economy has faced various economic, financial and political risks in recent decades. Therefore, several studies have examined the effect of these risks on macroeconomic variables, but no comprehensive study has been done on the effect of instabilities on economic growth. Therefore, this study tries to investigate the effect of financial, economic and political risks on Iran's economic growth. For this purpose, the financial, political and economic risk index in the framework of the Autoregressive distributed lag (ARDL) for the period 1398-1388 has been used. The results of long-term estimation of variables have shown that the two indicators of economic risk and financial risk have had a negative and significant effect on economic growth in Iran. Between these two indicators, the negative impact of financial risk index was more than economic risk. Based on this, it is suggested that appropriate policies and measures be taken to reduce financial and economic risks in the Iranian economy. Properly adopting fiscal and monetary policies and not making sudden decisions without a comprehensive study of the economy can make a significant contribution to reducing financial and economic risks.

Keywords

Main Subjects

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