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Examining the Asymmetric Impact of Foreign Direct Investment on Iran's Economic Growth Using the NARDL Model

Author

Listed:
  • Samieenasab, Mostafa

    (Associate Professor, Department of Economics, Imam Sadiq University, Tehran, Iran)

  • Zamani, Alireza

    (Master of Financial Management, Imam Sadeq University)

  • Jodatvand, Ali

    (Master's degree, Department of Economics, Imam Sadiq University, Tehran, Iran)

  • Kaveh Baghbadorani , Mohammad

    (Master's degree, Department of Economics, Imam Sadiq University, Tehran, Iran)

Abstract

Economic growth and development are important economic goals for every country and have been the focus of economic planners for a long time. Therefore, with the formation and development of growth models in economic literature, the category of investment and capital provision has been placed in the focus of researchers and policymakers as one of the basic economic issues. This research aims to examine the asymmetric effects of foreign direct investment on economic growth in Iran by applying the nonlinear autoregressive distributed Lag (NARDL) and existing theories in this field, with seasonal data from 2001 to 2021. The research results show that the positive shock of foreign direct investment has a positive effect, and the negative shock of foreign direct investment has a negative and significant effect on economic growth in the long term. Also, the positive shock of the degree of trade openness has a positive effect, and the negative shock of the degree of trade openness has a negative and significant effect on economic growth in the long run. In addition, the results show that the balance of payments also has a positive and significant effect on economic growth in the long term. Finally, the results of the Wald test also show that the effects of foreign direct investment shocks and trade openness are asymmetric in both the short and long term

Suggested Citation

  • Samieenasab, Mostafa & Zamani, Alireza & Jodatvand, Ali & Kaveh Baghbadorani , Mohammad, 2025. "Examining the Asymmetric Impact of Foreign Direct Investment on Iran's Economic Growth Using the NARDL Model," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 11(4), pages 33-66, March.
    • Handle: RePEc:ris:qjatoe:0353
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    More about this item

    Keywords

    Foreign direct investment; economic growth; Iran; NARDL;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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