Analysis of the Effects of Oil shocks upon Iran’s Economic Growth by Using Gravitational Search Algorithm (GSA) and Particles Swarm Optimization (PSO) Algorithm

Document Type : Research Article

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Abstract

Achieving high economic growth rate which requires the utilization of proper economic policies and the more knowledge about factors affecting the economic growth  is one of the most important goals in any economic system. Oil, as one the major source of energy and an important factor in production, leads countries to grow and develop. Since the effect of oil shock on the economic growth is linear, the question formulated in this research is the effect of the oil movement on Iran economic growth based on the framework of the searching algorithm. In order to answer this question, the non-linear behavior of Iran economic growth model was estimated by making use of two searching gravitational algorithms and optimizing the maximum of the particles between 1974-2011. Findings show that positive shock of oil, investment to production ratio, government expenses to gross national product ratio, the active population, and the degree of openness of the economic affirmatively influence Iran’s economic while the currency rate and the inflation rate negatively affect it. Therefore, generally, the effect of oil shocks has positive impacts on the growth of Iran economy. This can be highly influential in making important economic decision

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Journal of Applied Economics Studies in Iran
Volume 2, Issue 7 - Serial Number 7
October 2013
Pages 111-127

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