The effect of investment financing sources on economic growth in Iran with emphasis on foreign exchange inflows and outflows

Document Type : Original Article


1 Assistant Professor of Economics, University of Tabriz, Iran

2 M.A. in Economics, Tabriz University, Iran


Given the importance of financing in investment projects and different ways of financing, the choice between financing methods can be focused on the type of impact of each on growth production. For this purpose, in this study, sources such as foreign investment, foreign debt, oil and non-oil revenues as financing methods in Iran have been studied. In the first step, the BVAR model of analysis based on analysis of variance and instantaneous reaction functions was used to analyse the quantity and quality of the response of the model variables to each other and also the reaction of the main variable (economic growth) to other variables. In the second step, the ARDL model is used to analyse the model dynamics. The research period is 1979 to 2016 and the data are annual. The results show that overall financing by oil sales, foreign investment and foreign debt have a positive effect on economic growth, emphasizing that the effect of oil revenues is greater and faster than others.


Main Subjects

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Volume 1, Issue 4
December 2018
Pages 23-43
  • Receive Date: 19 July 2018
  • Revise Date: 17 August 2018
  • Accept Date: 13 September 2018