IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0157.html
   My bibliography  Save this article

Assessing Resilience Index of Monetary and Financial Sector of Iran’s Economy

Author

Listed:
  • Ghasemi, Hesameddin

    (Ph.D. Candidate in Economics, University of Shahid beheshti)

  • Arabmazar, Abbas

    (Associate Professor of Economics, University of Shahid Beheshti)

Abstract

Economic resilience refers to the ability to deal with various economic shocks as well as the ability to recover from crises. In this regard, the monetary and financial sectors are among the most important sectors in Iran’s economy, which are affected by shocks such as sanctions. For this reason, their resilience to crises is very important. The purpose of this paper is to define and estimate Iran's monetary and financial sectors resilience index. Therefore, according to the existing resilience literature, and using the grounded theory (GT) approach, theoretical saturation was obtained with respect to the resilience components of the monetary and financial sectors. As far as their importance is concerned, the growth rate of government oil revenues, the fluctuation of the growth rate of liquidity, risk index, the ratio of bank debt to the central bank to the monetary base and the ratio of government debt to the banking system to liquidity were identified as indicators of resilience of the monetary and financial sectors; respectively. The time series of the resilience index of monetary and financial sectors were estimated for the period from 1976 to 2016. Based on the obtained index, with exogenous shocks, the vulnerability of this sector is high. In addition, based on the results, in order to increase the resilience of this sector, it is recommended to correcting the banking system and relationship the government as an effective institution with the monetary and banking structure of Iran's economy.

Suggested Citation

  • Ghasemi, Hesameddin & Arabmazar, Abbas, 2019. "Assessing Resilience Index of Monetary and Financial Sector of Iran’s Economy," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 6(3), pages 23-48, October.
    • Handle: RePEc:ris:qjatoe:0157
    as

    Download full text from publisher

    File URL: https://ecoj.tabrizu.ac.ir/article_9143_26c7af0bd603a00aa2dacfb989e3b34b.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Resilience; Vulnerability; Grounded theory; Bayesian Model Averaging; Monetary and Financial Sector;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sakineh Sojoodi (email available below). General contact details of provider: https://edirc.repec.org/data/fetabir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.