Exports Instability, Capital Accumulation and Economic Growth: The Case of Iran

Exports Instability, Capital Accumulation and Economic Growth: The Case of Iran

The aim of this paper is to assess the relation between exports instability investment and economic growth in Iran. The few previous studies have not attempted to utilize the dynamic methods of assessment and the time series techniques and ARCH models. In this study, we found that the variables are unstable in level; therefore, a distorted view on studies was conducted according to regressive formats alone without no concern to the unstable state of variation. Nevertheless, our results indicate that in the long-run export instability has a negative effect on investment and economic growth. However, in the short -run the effects are minimal.