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Examining the Structure of Manufacturing Growth in Iran's Economy using Structural Vector Autoregression Model (SVAR)
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Ali Ajdari *   , Sahar Bashiri , Samad Aziznejad |
| Research Center of the Islamic Consultative Assembly , a.a.ajdari@gmail.com |
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Abstract: (26 Views) |
| The main goal of this research is to investigate the structure of value- added growth in the manufacturing sector and simulate the effect of various factors on it using the Structural Vector Autoregression Model. The findings of this research show that the manufacturing sector is affected by the general conditions of the country, and despite the positive shocks in economic growth and its continuation, the manufacturing sector will also grow. The credit policy aimed at increasing access to banking resources for the country's production sector also improves economic growth in the manufacturing sector. On the other hand, adverse exchange conditions and exchange rate fluctuations have a negative effect on economic growth in the manufacturing sector. Also, there is a high correlation between industrial value- added growth and investment in equipment and machinery in the studied period. Finally, the growth of domestic demand and increase in domestic consumption also causes the demand for industrial products to increase, which in turn improves the manufacturing growth. Therefore, proper credit policy, control of exchange rate fluctuations and encouragement of production investments (machinery and equipment) are important for the realization of industrial growth. |
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| Keywords: Manufacturing Growth, Structural Vector Autoregression Model, Iran’s Economy, Simulation of Shocks |
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Full-Text [PDF 802 kb]
(11 Downloads)
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Type of Study: Research |
Subject:
Special
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