The Analysis of effect of economic instability (with emphasis on budgect deficit (surplus) on economic growth in Iran.

اقتصاد پولی مالی

Article 8, Volume 19, Issue 3, January 2013   

Document Type: پژوهشی

DOI: 10.22067/pm.v19i3.28561

Authors

Majed Delavare Delavare^* ; Sajad Basir

Abstract

To day reaching a high economic growth rate is one of the main and
important aim of any economic system. Today the economists accept that
economic stability is a necessary issue, but is not enough for the economic
growth, while economic instability is one of the main elements, which
restrict economic growth. The aim of this research is analysis of the effect of
stability index of economy on economic growth in the country and to reach
the mentioned aim Spain has been used.
The main results obtained are as follows : The effect of real Budget Deficit
ratio to GDP on economic growth rate at the time of study (1973-2006)on
short and long run is negaitive and meaningful. The effect of inflation and
exchange rate has negative impact on the economic growth of Iran during
the study the short and long run .During the study the effect of government
consumption expenses ratio to GDP on economic growth is negative and
finally the effect of government Investment expenses to GDP on economic
growth is positive.In as much the effect each of three indexes economical
instability on economic growth of Iran has been negative and the result show

Keywords

Budget deficit; Inflation; exchange rate. Economic growth