Investigating the Simultaneous Relationship between Resilience and Economic Growth Emphasizing Foreign Investment

Document Type : Research/Original/Regular Article

Authors

1 Associate Professor, Department of Economics, Faculty of Economics, Kharazmi University, Tehran, Iran

2 Assistant Professor, Department of Economics, Institute of Islamic Studies in Humanities, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract

Considering the significant of sustainable economic growth in all countries, economists try to measure the impact of different variables on economy and attune their decision making agenda accordingly. Economic policy makers in Iran have targeted 8 percent of GDP for the five-year plan in order to achieve the economic aims of the 2025 perspective. This has not been achieved due to several reasons such as inappropriate atmosphere of the business, unsuitable structure of economy, and foreign pressures from imperial countries. One of the fertilizers for economic growth is to rely and trigger the resources, and attract different kinds of foreign and domestic investments. The role of foreign investment has been noted on clauses 10 and 12 of the macro-policies of resistance economy which can encourage the development of sustainable economy. This study, employing simultaneous equation model, tried to investigate the impact of changes in foreign investment and resilience index on economic growth of Iran from 1997 to 2021. The findings showed a significant relationship between economic growth and resilience on the one hand, and the degree of open economy and the rate of physical capital development. Also, there was a significant relationship between economic growth and resilience.

Keywords

Main Subjects

References

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Quarterly Journal of The Macro and Strategic Policies
Volume 9, Special Issue
December 2021
Pages 160-184

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