Impact of Cash and Non-Cash Capital Absorption on Economic Growth of Iran

Document Type : Review Article

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Abstract

Effort to attract‌ foreign‌ capitals is not necessarely an economic weakness. But it is to say that it is a way to stimulate and to promote the production flow of a country, a main chanel of the growth of international trade, technology transfer, job creation, and consequently a way to increase the living standards of any society. This study aims to analyze the effects of foreign investment (direct and indirect) as cash capital absorption and industrial goods importation (high, medium and low -tech industries) as non – cash capital absorption on Iranian economic growth for period of 2001-2012. In this regard, seasonal data have used in an autoregressive distributed lag (ARDL) model to examine the relationship between variables. Results showed a significant negative impact of industrial import and a significant positive impact of foreign investment on Iranian economic growth. Also other variables i.e. capital stock, employment, research and development expenditure and export have had significant positive impact on Iranian economic growth.

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References

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Quarterly Journal of The Macro and Strategic Policies
Volume 4, Issue 16
March 2017
Pages 90-114

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