African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4094

Full Length Research Paper

Globalization and economic growth in Iran

  Mehdi Safdari1, Masoud Abouie-Mehrizi2* and Marzie Elahi2      
  1Faculty of Economics, University of Qom, Iran. 2Department of Economics, Sirjan branch, Islamic Azad University, Sirjan, Iran.
Email: [email protected]

  •  Accepted: 21 September 2011
  •  Published: 30 November 2011

Abstract

In this paper, balance relation and long term of four variables: Gross domestic product (GDP) growth rate, growth rate of export of goods and services, the ratio of investment to GDP and population growth rate, and also their influences on each other in Iran for years 1971 to 2008 have been analyzed. For this purpose, vector autoregressive model (VAR) has been used. The first stability of variables by the use of Dickey-fuller test has been examined. Next, analysis of Johnson test for considering the convergence among five variables has been used. The results of this research show that the population growth rate has a negative effect on GDP growth rate. Also, the growth rate of export of goods and services and the ratio of investment to GDP have a positive relation with GDP growth rate.

Key words: Gross domestic product growth rate, growth rate of export of goods and services- the ratio of investment to GDP, population growth rate, vector autoregressive model (VAR).