The effect of Control of the movement of capital on business cycles in Iran

Subject Areas : Bi-quarterly Journal of development economics and planning

sharareh Shirmohammadi ¹ , hosein sharifi renani ² , Sara Ghobadi ³

1 - Ph.D. student in Economics, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
2 -
3 - Faculty member

Received: 2024-12-30 Accepted : 2025-01-26 Published : 2024-04-09

Keywords: Control of the movement of capital, Business Cycles, Legal Integrity, Oil Rent,

Abstract :

Business cycles are the periodical fluctuations of the overall economic activity that can happen in order to create stagnation or prosperity in the economy of countries. Policy makers and economic planners are always looking for determining and implementing the best anti-cyclical policies in order to avoid severe fluctuations in GDP and help to strengthen the level of stability and stability of the economy. The goal of the current research was to analyze the effect of Control of the movement of capital on Iran's business cycles during the period of 1999:1-2022:1. For this purpose, the autoregressive distributed lags model (ARDL) was used. The results indicated the anti-recession effect of Control of the movement of capital in the long term. Also, the variables of sound money and the legal integrity have had an anti-recession effect on business cycles in the long term. On the other hand, oil rent has had a stagnant effect in the long term. The error correction results also indicated that in each period 16.3% of short-term imbalances were adjusted and converged to their long-term trend.

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