Investigating the Mutual Relation between Entrepreneurship in Manufacturing Sector, Economic Growth and Employment in Iran Using SUR and SVAR Methods

Masoumeh Motallebi (), Mohammad Alaizadeh () and Mohsen Nazari Farsani ()
Additional contact information
Masoumeh Motallebi: Ph.D in Economics, Lorestan University
Mohammad Alaizadeh: Associate Professor of Economics, Lorestan University
Mohsen Nazari Farsani: Ph.D Candidate in Economics, Allameh Tabataba’i University

Quarterly Journal of Applied Theories of Economics, 2019, vol. 6, issue 3, 215-240

Abstract: The present study investigates the relation between entrepreneurship in Manufacturing sector, economic growth and employment rate in the Iranian economy, using the vector Auto-regressive model, using the Seemingly Unrelated Regression method and short-run Structural Vector Auto-Regressive model. According to the dependence of the Iranian economy on oil exports, sanctions and fluctuations in oil price in recent years have reduced economic growth in Iran. Entrepreneurship in the industry according to the young population of Iran, can lead to increase capacity in manufacturing sector, which in turn can have a positive impact on increasing non-oil exports and reduce the dependence of the Iranian economy on oil revenue. After estimating the model using annual data from 1959 to 2016, the results show that entrepreneurship in industrial sector has a positive effect on economic growth with six periods of lag and employment rate with five periods of lag in Iranian economy. Therefore, entrepreneurship can have a positive effect on employment and economic growth if new businesses are created for sequential periods and not closed for at least six years. Employment rate has a positive effect on entrepreneurship in the industrial sector and economic growth with two periods of lag. The results for the short-run SVAR pattern reflect the positive effect of economic growth on employment. Therefore, increasing economic growth can have a positive effect on employment rate in the current term.

Keywords: Entrepreneurship; New company formation; Economic growth; Employment; VAR model (search for similar items in EconPapers)
JEL-codes: C32 E24 O40 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ecoj.tabrizu.ac.ir/article_9422_f25dc799264951dd5e583810ee893502.pdf Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:qjatoe:0164

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.
Bibliographic data for series maintained by Sakineh Sojoodi ().