IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v23y2019i2p469.html
   My bibliography  Save this article

Periodic Cointegration Analysis on the Relationship between the GNP Sectors of the Iran’s Economy

Author

Listed:
  • Marzieh Manafi Mollayousefi

    (Department of Agricultural Economics, University of Tabriz, Tabriz, Iran.)

  • Mohammad Ghahramanzadeh

    (Department of Agricultural Economics, University of Tabriz, Tabriz, Iran.)

  • Esmaeil Pishbahar

    (Department of Agricultural Economics, University of Tabriz, Tabriz, Iran.)

Abstract

This paper analyses the relation between GNP sectors of Iran’s economy. The different sectors of the economy directly or indirectly affect each other and can complement or follow each other. Using a number of empirical tests, the paper finds evidence of seasonal or periodic integration in the underlying data. This means that the conventional cointegration tests may not be robust and in result, a more appropriate periodic cointegration test was used. This approach, by recognizing the stochastic nature of the seasonal pattern of the time series involved, avoids inconsistent estimations, errors in statistical inference and also biases in economic policy decisions. Our results find evidence of periodic cointegration between GNP of the industry and service sectors. In addition, we find that the speed of adjustment of misalignments is different depending on the quarter. The adjustment of equilibrium misalignments is faster if they take place in the April-June period than in the rest of the year.

Suggested Citation

  • Marzieh Manafi Mollayousefi & Mohammad Ghahramanzadeh & Esmaeil Pishbahar, 2019. "Periodic Cointegration Analysis on the Relationship between the GNP Sectors of the Iran’s Economy," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(2), pages 469-490, Spring.
    • Handle: RePEc:eut:journl:v:23:y:2019:i:2:p:469
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20192-10.pdf
    Download Restriction: no
    ---><---

    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:eut:journl:v:23:y:2019:i:2:p:469. 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: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.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.