IDEAS home Printed from
   My bibliography  Save this article

Threshold Effects of External Debt on Economic Growth of Iran: Smooth Transition Regression (STR) Model


  • Alizadeh, Mohammad

    () (Assistant Professor of Economics, Lorestan University)

  • Golkhandan , Abolghasem

    () (Ph.D. Student in Economics, Lorestan University)

  • Mohamadian Mansoor , Sahebeh

    () (Lecturer, University of Payam-Noor)


Previous studies show conflicting results about the effects of external debt on economic growth in different countries; this inconsistency in results could be due to nonlinear effects of external debt on economic growth. The identification of this nonlinear relationship can be widely used in government policies toward external debt. This paper investigates the impact of external debt on economic growth in Iran during the period 1970-2014. For this purpose, is used the smooth transition regression (STR) model. Results of the estimated Smooth Transition Regression (STR) model, approved the nonlinear effects of external debt on economic growth, also external debt had a negative effect on economic growth in the form of a two regime structures with a threshold level of about 18770 million dollars. So that increases the intensity of this negative impact with crossing of threshold level and entering the second regime.

Suggested Citation

  • Alizadeh, Mohammad & Golkhandan , Abolghasem & Mohamadian Mansoor , Sahebeh, 2015. "Threshold Effects of External Debt on Economic Growth of Iran: Smooth Transition Regression (STR) Model," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(2), pages 1-24, September.
  • Handle: RePEc:ris:qjatoe:0009

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    External Debt; Economic Growth; Iran; Smooth Transition Regression (STR) Model.;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems


    Access and download statistics


    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:0009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.