The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy
The present study aimed to investigate the effect of financial fragility on macroeconomic variables within a TVP-VAR model. For this purpose, first the financial fragility variable was calculated. Then, this study evaluated the effect of this variable on macroeconomic variables including economic gr...
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| Format: | Article |
| Language: | English |
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University of Sistan and Baluchestan
2022-07-01
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| Series: | International Journal of Business and Development Studies |
| Subjects: | |
| Online Access: | https://ijbds.usb.ac.ir/article_7436_d54a5733c5e268e45d34c366d23824b6.pdf |
| _version_ | 1797803249510645760 |
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| author | Alireza Rezaee Dariush Fareed Habib Ansari Samani |
| author_facet | Alireza Rezaee Dariush Fareed Habib Ansari Samani |
| author_sort | Alireza Rezaee |
| collection | DOAJ |
| description | The present study aimed to investigate the effect of financial fragility on macroeconomic variables within a TVP-VAR model. For this purpose, first the financial fragility variable was calculated. Then, this study evaluated the effect of this variable on macroeconomic variables including economic growth rate, inflation rate, and exchange rate. In this study, the quarterly data for the period 2001-2020 were used. The results indicated that financial fragility had a negative effect on economic growth but a positive effect on exchange rate and inflation by creating uncertainty in the economy. In other words, financial fragility in Iran increased economic fluctuations by reducing economic growth and increasing inflation and exchange rates. |
| first_indexed | 2024-03-13T05:18:56Z |
| format | Article |
| id | doaj.art-34700197e7c54f788554c7a6fdc2d004 |
| institution | Directory Open Access Journal |
| issn | 2538-3302 2538-3310 |
| language | English |
| last_indexed | 2024-03-13T05:18:56Z |
| publishDate | 2022-07-01 |
| publisher | University of Sistan and Baluchestan |
| record_format | Article |
| series | International Journal of Business and Development Studies |
| spelling | doaj.art-34700197e7c54f788554c7a6fdc2d0042023-06-15T16:56:55ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102022-07-01141254010.22111/ijbds.2022.74367436The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian EconomyAlireza Rezaee0Dariush Fareed1Habib Ansari Samani2PhD Candidate, Department of Financial Management and Accounting, Yazd University, Yazd, Iran.Associate Professor, Department of Financial Management and Accounting, Yazd University, Yazd, Iran.Associate Professor, Department of Economics, Yazd Univesrity, Yazd, Iran.The present study aimed to investigate the effect of financial fragility on macroeconomic variables within a TVP-VAR model. For this purpose, first the financial fragility variable was calculated. Then, this study evaluated the effect of this variable on macroeconomic variables including economic growth rate, inflation rate, and exchange rate. In this study, the quarterly data for the period 2001-2020 were used. The results indicated that financial fragility had a negative effect on economic growth but a positive effect on exchange rate and inflation by creating uncertainty in the economy. In other words, financial fragility in Iran increased economic fluctuations by reducing economic growth and increasing inflation and exchange rates.https://ijbds.usb.ac.ir/article_7436_d54a5733c5e268e45d34c366d23824b6.pdffinancial fragilityinflationeconomic growthirantvp-var model |
| spellingShingle | Alireza Rezaee Dariush Fareed Habib Ansari Samani The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy International Journal of Business and Development Studies financial fragility inflation economic growth iran tvp-var model |
| title | The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy |
| title_full | The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy |
| title_fullStr | The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy |
| title_full_unstemmed | The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy |
| title_short | The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy |
| title_sort | effect of financial fragility on macroeconomic variables tvp var model for the iranian economy |
| topic | financial fragility inflation economic growth iran tvp-var model |
| url | https://ijbds.usb.ac.ir/article_7436_d54a5733c5e268e45d34c366d23824b6.pdf |
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