خلاصة:
Nowadays, Foreign Capital Inflows (FCIs) are considered as a catalyst for economic
development and an important source of transferring technology and foreign exchange
earnings from developed to developing countries. The purpose of this paper is to estimate
the impact of FCIs (which include foreign direct investment, personal remittances and
official development investment) on economic growth in Iran. An Autoregressive
Distributed Lag (ARDL) approach is used over the period 1992-2016. The results indicate
that all the three of foreign capital inflows have positive and significant impacts on
economic growth in the short-run and long-run. However, Foregin Direct Investment
(FDI) and Public Relations (PR) have more effects than Official Development Assistant
(ODA) on economic growth of Iran. The study suggests the design and implementation
of appropriate fiscal, monetary and trade policies to complement the flow of foreign
capital inflows to realize of its full impact on growth.
ملخص الجهاز:
The purpose of this paper is to estimate the impact of FCIs (which include foreign direct investment, personal remittances and official development investment) on economic growth in Iran.
The results indicate that all the three of foreign capital inflows have positive and significant impacts on economic growth in the short-run and long-run.
Foreign capital provides part of investment even if the economic environment improves using appropriate fiscal and monetray policies to absorb different forms of FCIs. The paper is organized as follows: after introduction, the next section reviews the relevant literature, section three is the methodology and data.
The results confirm that all the three forms of foreign capital inflows have positive and significant impacts on economic growth in the long-run.
Nwaogu & Ryan (2015) investigate the impact of FDI, remittances and foreign aid on 53 African and 34 Latin American and Caribbean countries, using a panel data consisting of eight 5–year periods (form 1970 to 2009), and a dynamic spatial model.
Nevertheless, most previous studies have examined the impact of three different forms of FCI inflows (namely FDI, PR or ODA) on economic growth in different countries and regions separately using various models and econometric techniques.
Conclusion This study attempts to examine empirically the impacts of FDI, PR, and ODA on economic growth of Iran over the period of 1992-2016 by ARDL estimator.
However, the results of estimated model show that FDI and PR have more impacts than ODA on economic growth over the study period.