Authors: Parham Parsva
Addresses: Department of Economic Development and Planning, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran
Abstract: In this study, using the panel vector autoregression model, the impact of trade shocks on production in Iranian manufacturing industries is investigated. For this aim, the time series data of the period from 1995 to 2017 as well as the impulse response and variance decomposition functions (VDFs) are used. The results of the model's estimation show that Iran's industrial development is heavily influenced by the import of capital and intermediate goods. Also, the results of this study indicate that various industries are affected differently by trade shocks, as some industries receiving a downward effect and some industries receiving an upward effect from these shocks.
Keywords: trade shocks; panel VAR; impulse response function; variance decomposition; Iranian manufacturing industries.
International Journal of Economics and Business Research, 2020 Vol.20 No.4, pp.391 - 406
Received: 03 Aug 2019
Accepted: 11 Mar 2020
Published online: 21 Oct 2020 *