The effect of long and short time oil shocks on economic growth in Iran

Sayyed Abdolmajid Jalae () and Sanaz Mohammadi
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Sayyed Abdolmajid Jalae: Economic Department, university of Kerman

Romanian Economic Journal, 2012, vol. 15, issue 45, 69-92

Abstract: Oil is one of the strategic good so that price fluctuations and shocks of it have major effects on economic growth and recession in depended countries to revenues of it. In this study, it is tried that the effect of oil price shocks investigated in two types (short and long time) on Economic growth in Iran. Its Period is from 1974 to 2006. According it, oil price uncertainty is quantized by GARCH model and is determined the effects of oil price shocks on economic growth in Iran during a short and extended time by Vector Auto-regression Estimates (VAR), Vector Error Correction Estimates (VECM), Unrestricted Co-integration Rank Test (Trace) tests. The results of these estimations have shown that the effect of oil price shocks in short and prolonged course on economic growth in Iran had been negative.

Keywords: Economic; growth; -oil; price; shock-; GARCH; model-; VAR; model-VECM; model (search for similar items in EconPapers)
JEL-codes: E32 O47 Q33 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:15:y:2012:i:46:p:69-92

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