Research Article

Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy

Volume: 5 Number: 2 December 27, 2020
TR EN

Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy

Abstract

Oil revenues are of strategic significance for the Iranian economy. Iran, one of the largest oil producers, affects both the international markets and is affected by the developments in international markets. Although oil incomes have an important position for public sector balance and economic activity level, oil shocks have been crucial for the increasing budget deficits of the Iranian economy. The purpose of this paper is to investigate the dynamic economic growth, budget deficits, inflation and oil income shocks relation in Iran by SVAR Model using annual data for the period 1970-2012. The structural impulse-response functions and structural variance decomposition results made by SVAR technique showed that budget deficits are the most important variable explaining total oil incomes in Iranian economy.

Keywords

References

  1. Akgün, A. (2006). Petrol Fiyatlarındaki Değişimlerin İMKB-100 Endeksi Üzerine Etkisi (Doctoral dissertation, Selçuk Üniversitesi Sosyal Bilimler Enstitüsü).
  2. Aktaş, H., Kayalıdere, K., & Karataş Elçiçek, Y. (2018). Petrol, Dolar Kuru ve Hisse Senedi Piyasası Arasındaki Ortalama-Oynaklık Yayılım Etkisi: Bıst100 Uzerine Bir Uygulama. Muhasebe ve Vergi Uygulamalari Dergisi (MUVU)/Journal of Accounting & Taxation Studies (JATS).345-347
  3. Basnet, H. C., & Upadhyaya, K. P. (2015). Impact of Oil Price Shocks on Output, Inflation and The Real Exchange Rate: Evidence From Selected ASEAN Countries. Applied Economics, 47(29), 3078-3091.
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  5. Blanchard, O. J., & Gali, J. (2007). The Macroeconomic Effects of Oil Shocks: Why Are The 2000s So Different From The 1970s? (No. w13368). National bureau of economic research. 2-77.
  6. Blanchard, O. J., & Quah, D. (1988). The dynamic effects of aggregate demand and supply disturbances (No. w2737). National Bureau of Economic Research.
  7. Breitung, J., Brüggemann, R., & Lütkepohl, H. (2004). Structural vector autoregressive modeling and impulse responses. Applied time series econometrics.
  8. Boroumand, S., Mohammadi, T., Pajooyan, J., & Memarnejad, A. (2019). The Effect of Exchange Rate, Oil Prices and Global Inflation Shocks on Macroeconomic Variables for The Iranian Economy in The Form of A DSGE Model. Iranian Economic Review, 23(4), 1057-1083.

Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Publication Date

December 27, 2020

Submission Date

May 9, 2020

Acceptance Date

July 10, 2020

Published in Issue

Year 2020 Volume: 5 Number: 2

APA
Soylu, Ö. B. (2020). Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy. JOEEP: Journal of Emerging Economies and Policy, 5(2), 11-19. https://izlik.org/JA79CU75SB
AMA
1.Soylu ÖB. Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy. JOEEP. 2020;5(2):11-19. https://izlik.org/JA79CU75SB
Chicago
Soylu, Özgür Bayram. 2020. “Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy”. JOEEP: Journal of Emerging Economies and Policy 5 (2): 11-19. https://izlik.org/JA79CU75SB.
EndNote
Soylu ÖB (December 1, 2020) Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy. JOEEP: Journal of Emerging Economies and Policy 5 2 11–19.
IEEE
[1]Ö. B. Soylu, “Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy”, JOEEP, vol. 5, no. 2, pp. 11–19, Dec. 2020, [Online]. Available: https://izlik.org/JA79CU75SB
ISNAD
Soylu, Özgür Bayram. “Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy”. JOEEP: Journal of Emerging Economies and Policy 5/2 (December 1, 2020): 11-19. https://izlik.org/JA79CU75SB.
JAMA
1.Soylu ÖB. Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy. JOEEP. 2020;5:11–19.
MLA
Soylu, Özgür Bayram. “Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy”. JOEEP: Journal of Emerging Economies and Policy, vol. 5, no. 2, Dec. 2020, pp. 11-19, https://izlik.org/JA79CU75SB.
Vancouver
1.Özgür Bayram Soylu. Oil Income Shocks on Budget Deficit, Growth and Inflation for the Iranian Economy. JOEEP [Internet]. 2020 Dec. 1;5(2):11-9. Available from: https://izlik.org/JA79CU75SB

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