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Ranjbar Z, Etemad S M K. Investigating the Effect of Monetary Shock on the Activity Level of Industrial Units in Iran Using the FAVAR Model. sjamao. 2021; 3 (2) :8-15
URL: http://sjamao.srpub.org/article-7-108-en.html
Department of Industrial Engineering, Faculty of Engineering, Zand Institute of Higher Education, Shiraz, Iran
Abstract:   (206 Views)
Today, economic development is not possible without paying attention to the industrial sector. Industry is one of the infrastructural sectors of the economy that plays an important role in determining the cycles of prosperity and recession  Also, the monetary policy is one of the important macroeconomic policies of the country which due to the importance of the industrial sector in Iran's economy and the need to adopt appropriate monetary policies, this study tries to investigate the effect of monetary shocks including liquidity shock and monetary base shock on the level of activity of industrial units in the country. For this purpose, statistical data from 1978 to 2016 and a Factor augmented vector auto regressive (FAVAR) model have been used to determine the relationships and effects of shocks and their analysis. The research findings indicate that a positive monetary shock (increase in money supply) has expansionary effects on the count growth of Industries and the investment of these industries in Iran's economy. Also, the count of industries and their investment According to liquidity shocks have a faster and more stable response than monetary base shocks.
Full-Text [PDF 821 kb]   (436 Downloads)    
Type of Study: Research | Subject: Industrial Organization
Received: 2021/02/15 | Accepted: 2021/03/30 | Published: 2021/04/30

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