Business, Management and Accounting
7 years ago

Foreign Investments Boost Economic Growth in Iran: Reciprocal Relationship Revealed

Iranian economic review
The Interactive Relationship between Economic Growth and Foreign Direct Investments (FDI): A VAR Analysis in Iran
Monireh Rafat

Paper Summary

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Foreign direct investments (FDI) can impact economic growth in different ways. Some studies show a positive relationship, while others show a negative one. In Iran, a study using VAR analysis found that FDI and economic growth have a positive impact on each other. This means they help each other grow. The study also found that there is a reciprocal relationship between FDI and GDP growth in Iran from 1991 to 2014.