Impact of Financial and Monetary Development and Public Expenditures on Iran’s National Income (An Econometric Study)

Sameti, Morteza; Eshraghi, Fereshteh; Abbaslou, Yasser

Document Type : Research Paper

Authors

Abstract

Many of economists believe that financial and monetary development and economic stability are necessary conditions in order to access to high rate of economic growth. Regarding the high importance of economic growth for developing countries, we investigate financial and monetary development, economic stability and their impact on economic growth.
The objective of this paper is to estimate an econometric model for analyzing the impact of financial and monetary development and public expenditure on Iran’s national income. Selection of the variables is consistent with economic growth and the views of monetarist and Keynesian on the relative impact of monetary and fiscal policies.
After determining the time series characteristics of the data set a vector error correction model (VECM) is estimated.

The empirical results indicate no support for "supply leading" view of financial development and Mackinnon-Shaw repressionist proposition in Iran. Also there is not any noticeable support for the monetary and fiscal policies effectiveness.

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Economics Research

Impact of Financial and Monetary Development and Public Expenditures on Iran’s National Income (An Econometric Study)

References

References

Volume 9, Issue 35 - Serial Number 4
January 2010
Pages 15-35

Impact of Financial and Monetary Development and Public Expenditures on Iran’s National Income (An Econometric Study)

References

References

Volume 9, Issue 35 - Serial Number 4January 2010Pages 15-35

Volume 9, Issue 35 - Serial Number 4
January 2010
Pages 15-35