Dynamic relationship between strategic goods and Islamic financial markets in Iran using SVAR-CCC model

Subject Areas : Islamic finance

Farideh Bakhtiarian ¹ , Fatemeh Zandi ² , Abdollah Davani ³ , Fatemeh Saraf ⁴

1 - Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran.
4 - Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

Received: 2023-02-25 Accepted : 2023-07-02 Published : 2023-08-23

Keywords: gold, Currency, Islamic financial markets, strategic commodities, SVAR-CCC model,

Abstract :

Purpose: The development of the financial market in Islamic countries, like all the countries of the world, has been among the main goals of the government and government institutions as one of the most important pillars of economic development. For this reason, the increasing development and progress of financial operations in these countries and the improvement of the level of financial services in Islamic markets in the world have caused the serious efforts of thinkers and activists in this field of business activities to form Islamic capital markets.Research Methodology: The current research shows the dynamic relationship between strategic goods and Islamic financial markets in Iran using SVAR-CCC structural vector autoregression model for the years 1991 to 2019.Findings: Based on the estimation results of the CCC model, oil price has a high correlation with the yield of foreign exchange earnings, the amount of liquidity and the development index of financial markets. Also, based on the estimation results of the SVAR-CCC model, an incoming impulse from the area of oil price, exchange rate and liquidity volume, respectively; It reduces the development of financial markets by 11%, 29% and 4%.Originality / Value: due to the fact that our country is highly dependent on import demand due to consumption, therefore, with the increase in oil revenues, the total demand in the economy increases, and due to the lack of production power in the industry and agriculture sector, with the increase in demand by consumers of goods and services, the general level of prices (inflation) also increases, in this situation and to prevent the general level of prices from increasing again due to the increase in demand in the country, imports (which are a direct function of income) from other countries increase, rather than inflation be prevented

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