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The Effect of Oil Shocks on Private Investment in Iran
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| Reihaneh Gaskari *, Ali Reza Eghbali |
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Abstract: (21635 Views) |
| Regarding Government's revenues, oil and oil income are very important
factors for oil export countries such as Iran. Since oil prices are
determined in the world markets, it is one of the factors for economic
instability and in particular for financing private investment. These
effects will be more effective in the presence of oil shocks. This paper
attempts to determine the direction and the intensity of oil shocks using
on econometric model and it's effects on private investment in Iranian
economy during 1959-2002. The results of empirical studies imply that
in the case of positive oil shocks, i.e. price increase of more than 25
percent, the effect would be positive and in the case of negative oil
shocks, i.e. price increase of less than 25 percent, the effects would be
negative. In other words, oil shocks on private investment have different
effects on private investment. |
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| Keywords: Oil Export, Economic Instability, Econometrics, Private Investment, Oil Revenue |
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Full-Text [PDF 262 kb]
(4401 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2012/09/5 | Published: 2006/01/15
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