The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Ghahroudi, Mehdi Rasouli; Li, Chong

doi:10.2478/eb-2020-0002

Cited by 7 publications

(2 citation statements)

References 48 publications

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“…13. Rasouli and Chong (2020) also find macro determinants such as exchange rate and inflation rate have a long-run effect on FDI inflows in Iran. 14.…”

Section: Notesmentioning

confidence: 83%

Macroeconomic policies and the Iranian economy in the era of sanctions

Kandil

Mirzaie

2021

Middle East Development Journal

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This paper examines the impact of macroeconomic policies on the Iranian economy. The study covers the time between 1978-2017. The results illustrate the role of the money supply and government spending in supporting growth, although contributing to inflationary pressures in the long run, attesting to supply-side constraints. In the short-run, policies have aimed to provide support to the economy in the face of continued fluctuations with the oil price and spillovers from the geopolitical tensions attributed to sanctions. The exchange rate has played a key role in absorbing, but at times magnifying the adverse effects of these tensions. Continued deterioration of the fundamentals of the Iranian economy forced an official devaluation as the exchange rate proved to be misaligned with the fundamentals of the economy against the backdrop of the limited capacity of the Central Bank to continue to intervene to defend stability. In the meantime, a parallel exchange rate market has been flourishing to satisfy the market's needs as culminated in the spread between the market exchange rate and the official exchange rate. A wider spread between the parallel market rate and the official rate has signified overvaluation of the rial and proved to be a major source of inflationary expectations and pressures. Wider spread has demanded frequent interventions by the Central Bank to defend the official rate and ultimately has forced an official devaluation of the exchange rate, further increasing inflationary pressures with negative effects on the output supply given high dependency on imports for consumption and investment.

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“…13. Rasouli and Chong (2020) also find macro determinants such as exchange rate and inflation rate have a long-run effect on FDI inflows in Iran. 14.…”

Section: Notesmentioning

confidence: 83%

Macroeconomic policies and the Iranian economy in the era of sanctions

Kandil

Mirzaie

2021

Middle East Development Journal

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“…In these states, events in non-oil, as well as non-governmental zones, are always connected to Oil as well to governmental activities (Mohammad et al 2020). The chief basis of manufacturing value-added tries to take in chemicals, refineries, and other extractive industries, whereas other non-oil sectors, for instance, construction rely heavily on governmental contacts (Mehdi and Li 2020).…”

Section: Introductionmentioning

confidence: 99%

Impact of Macroeconomic Variables on the Economic Growth in the Middle East Countries

ABUEID

2020

JAES

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This study investigated the impact of macroeconomic variables on the economic growth in the Middle East countries. The objectives of the research were to determine the relationship among GDP, inflation, oil and gas prices as well as competition on the economic growth in the Middle East. The study spanned between 2015 and 2019. The time series data for the region was obtained from the World Bank while data on ROA, together with ROE, was mined on the OPIC report. The GDP, oil price, interest rate, inflation, and completion were collected from OPIC and International monetary fund (IMF) Middle East report. The research used a panel regression method to analyses the impact of macroeconomic variables on the economic growth of Middle East countries. The results showed that the GDP, oil and gases prices, inflation as well as supply of money are the most significant macroeconomic variables of the growth of the economy. The government, together with authorities that regulate, is required to discover other resources apart from hydrocarbon to refresh its economy as well as engender cost-effective financial structure in view of the global low-carbon technology advancements and decarburization policies. The research has a useful, practical implication for the policymakers, regulators of the region. The government, together with authorities that regulate, is required to discover other resources apart from hydrocarbon to refresh its economy as well as engender cost-effective financial structure.

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Iran (Material Capabilities)

Kirkham

2022

The Political Economy of Sanctions: Resilience and Transformation in Russia and Iran

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The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Cited by 7 publications

References 48 publications

Macroeconomic policies and the Iranian economy in the era of sanctions

Macroeconomic policies and the Iranian economy in the era of sanctions

Impact of Macroeconomic Variables on the Economic Growth in the Middle East Countries

Iran (Material Capabilities)

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