Threshold Effects of External Debt on Economic Growth of Iran: Smooth Transition Regression (STR) Model
Mohammad Alizadeh (),
Abolghasem Golkhandan () and
Sahebeh Mohamadian Mansoor ()
Additional contact information
Mohammad Alizadeh: Assistant Professor of Economics, Lorestan University
Abolghasem Golkhandan: Ph.D. Student in Economics, Lorestan University
Sahebeh Mohamadian Mansoor: Lecturer, University of Payam-Noor
Quarterly Journal of Applied Theories of Economics, 2015, vol. 2, issue 2, pages 1-24
Previous studies show conflicting results about the effects of external debt on economic growth in different countries; this inconsistency in results could be due to nonlinear effects of external debt on economic growth. The identification of this nonlinear relationship can be widely used in government policies toward external debt. This paper investigates the impact of external debt on economic growth in Iran during the period 1970-2014. For this purpose, is used the smooth transition regression (STR) model. Results of the estimated Smooth Transition Regression (STR) model, approved the nonlinear effects of external debt on economic growth, also external debt had a negative effect on economic growth in the form of a two regime structures with a threshold level of about 18770 million dollars. So that increases the intensity of this negative impact with crossing of threshold level and entering the second regime.
Keywords: External Debt; Economic Growth; Iran; Smooth Transition Regression (STR) Model. (search for similar items in EconPapers)
JEL-codes: C32 F33 F34 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://ecoj.tabrizu.ac.ir/jufile?c2hvd1BERj00MDY1J ... NGM0YTE5Y2I4NGJiMDRh Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ris:qjatoe:0009
Access Statistics for this article
Quarterly Journal of Applied Theories of Economics is currently edited by Sakineh Sojoodi
More articles in Quarterly Journal of Applied Theories of Economics from Faculty of Economics, Management and Business, University of Tabriz Contact information at EDIRC.
Series data maintained by Sakineh Sojoodi ().