TY - JOUR ID - 21376 TI - Measuring the Effect of Oil & Monetary Shocks on the Economic Growth of Iran JO - Journal of Economic Research (Tahghighat- E- Eghtesadi) JA - JTE LA - en SN - 0039-8969 AU - Komijani, akbar AU - Asadi Mehmandosti, elahe AD - Y1 - 2010 PY - 2010 VL - 45 IS - 3 SP - EP - KW - Dutch Disease KW - economic growth KW - Monetary Policy Shocks KW - Oil shocks KW - Vector Auto Regressive (VAR) model DO - N2 - In this research, potential effects of oil and monetary policy shocks on economic growth of Iran are examined and share of each of them on economic growth are calculated during 1974-2006 period and potential mutual effects of those shocks by using the Vector Auto Regressive (VAR) model are analysed. Results of this research show that oil shocks significantly affected the economic growth in Iran. However, in spite of oil shocks affected on the liquidity of money that led to expansionary monetary policy, monetary shocks did not have any effect on growth. Strong relationship between oil shocks & GDP growth in Iran indicates that the economy of Iran is heavily depending on oil revenues. On the other hand, the monetary shock which is due to increase in oil revenues, does not have strong effects on GDP growth because of delay in effectiveness of monetary action and also due to implementation of contractionary monetary policy to control inflation rate that has ended up with a weak effects on GDP growth. JEL classification: C32, E32, E52, O47 & Q43 UR - https://jte.ut.ac.ir/article_21376.html L1 - https://jte.ut.ac.ir/article_21376_002778db2155686c5a78ea75ad23a088.pdf ER -