Investigating the Co- Movement and Causality between Iran and Germany
Mansour Khalili Araghi and
Farideh Sadeghian Fard
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Mansour Khalili Araghi: Professor; Faculty of Economics, University of Tehran
Farideh Sadeghian Fard: M.A. in Economics
Iranian Economic Review (IER), 2011, vol. 16, issue 2, 1-9
Abstract:
This study investigates the economic interdependence between Iran and her main historical trade partner, Germany. We want to see whether the business cycles are transferring from Germany to Iran via trade? By using SVAR model we have found that for period of 1990-2006, Germany have had a slight effect on Iran’s economy. Iran is the importer of capital and industrial goods from Germany, and the changes in her import conditions would have effect on domestic product and the supply side. However, we have found that the cycles and fluctuations in Iran have mainly been caused by her own domestic conditions. The trade barriers and control have reduced the effect of the fluctuations from Iran’s trade partner to move into Iran’s economy.
Keywords: Co- Movement; Germany; SVAR; Trade (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:16:y:2011:i:2:p:1
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