Evaluating the Degree of Iran's Economic Resilience and determining the factors affecting it: Pre and Post JCPOA
Abstract
In this research, the resilience of Iran's economy before and after the JCPOA and the factors affecting it are evaluated. A composite index is
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Evaluating the Degree of Iran's Economic Resilience and determining the factors affecting it: Pre and Post JCPOA
Abstract
In this research, the resilience of Iran's economy before and after the JCPOA and the factors affecting it are evaluated. A composite index is used to measure Iran's economic resilience. This composite index covers the three dimensions of economic stability, welfare effects, concentration and export diversity. Results shown that Iran's E.R. varies from 0.31 to 0.53 during the period 1995-2016. It should be mentioned that the size of Iran's E.R. decreased to minimum level in 2013 due to imposing UN sanction against Iran's Economy. Our findings also shown that economic complexity, economic freedom, good governance and capital formation have positive and significant impacts on Iran's E.R, while, economic openness had a negative and significant impact on Iran's E.R. Finally, the regression results indicate that, JCPOA has a positive and significant impact on Iran's E.R. This agreement has had a significant impact on Iran's economy and world markets by canceling and removing nuclear sanctions against Iran. The implementation of this agreement made possible the entry of technology and investments of the world's oil companies in Iran. Apart from the energy sector, JCPOA has also had an impact on trade and other commercial investments.
JEL Clasification: Q56, C43, Q55
Keywords: Economic Resilience, JCPOA, Composite Indicator, Complexity
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