Volume 20, Issue 2 (2020)                   QJER 2020, 20(2): 121-144 | Back to browse issues page

‎ 20.1001.1.17356768.1399.20.2.3.6

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mohammadinode A, hasanvand D, Asayesh H. Investigating the Role of Foreign Direct Investment on Economic Growth in Economic Sectors of Iran. QJER 2020; 20 (2) :121-144
URL: http://ecor.modares.ac.ir/article-18-29990-en.html
Investigating the Role of Foreign Direct Investment on Economic Growth in Economic Sectors of Iran
Adel Mohammadinode1 , Darush Hasanvand * 2, Hamid Asayesh3
1- Ph.D. Candidate in Economics, Islamic Azad University
2- Assistant Professor, Department of Economics, Lorestan University, Khoramabad, Iran , hassanvand.d@lu.ac.ir
3- Assistant Professor, Department of Economics, Ayatollah Ozma Brojerdi University, Brojerd, Iran
Abstract:   (5194 Views)
The purpose of this paper is to estimate the direct effect of foreign investment on economic growth in agriculture, industry and services sectors in the provinces of Iran during the period 2001-2017. For this purpose, the Panel Smooth Transition Regression (PSTR) model used. It was found that there is a nonlinear relationship between foreign direct investment and the growth of various economic sectors. The results of this study indicate that foreign direct investment affects differently the growth of various economic sectors due to fluctuations in inflation rates. The estimated coefficients for the inflation rate threshold in three-menthioned sectors were 2.55, 1.78 and 1.94, respectively. In addition, one-percent increase in foreign direct investment would increase the growth rates of agriculture, industry, and service sectors by 0.50%, 0.69% and 0.88%, respectively.
Keywords: Foreign direct investment, economic growth, employment, nonlinear model
Full-Text [PDF 1448 kb]   (3952 Downloads)    
Article Type: Original Research | Subject: Economics and Econometrics
Received: 2019/01/30 | Revised: 2022/09/21 | Accepted: 2019/06/12 | Published: 2020/06/21
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