Using Johansen-Juselius Cointegration Technique to Identify the Effective Factors of Production in Carpet Industry (The Case Study: Kurdistan Province)

Subject Areas : Industrial Management

Anvar  khosravi ¹ (Ph.D Student and Faculty Member, Department of Economics, Islamic Azad University, Sanandaj Branch)
Ramiar  Refaei ² (Ph.D Student and Instructor of Economics, Islamic Azad University, Sanandaj Branch,)
Hozan  Refaei ³ (Master Student of Business Administration, Islamic Azad University, Sanandaj Branch)

Received: 2018-01-06 Accepted : 2018-01-06 Published : 2014-12-22

Keywords:

Abstract :

Carpet Industry has a long history and background in Kurdistan Province. Kurdistan has an advantage regarding the potentials in the production and export of carpet. The production and export to the world markets can be increased given the high potentials of trade organizations. This study estimated the production of carpet in Kurdistan Province. In order to estimate this function, three indices, i.e., economic, social and cultural indices were specified and two variables were introduced for each one. Using Johansen-Juselius Cointegration Technique for the period from 1999 to 2009, the long-term results showed that there was a significant positive relationship between most of the introduced variables and carpet production in Kurdistan. Regarding the short-term ECM Coefficient and the fact that the results of the tests are reliable at 90 % confidence interval, we can say that the process of the variables movement towards long-term balance has a good and justified balance.    

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