The Investigation of Relationship between Privatization and Economic Growth in Iran
JavadShahraki, MosayebPahlavani, KamranBarghandan

Abstract
Nowadays, privatization is one of the desirable ways for governments to reach reasonable economic growth. According to the acquired positive results of privatization in the western countries, IMF and World Bank suggestions, Islamic republic of Iran decided to establish its own policies under this platform. A lot of studies have been done abroad over relationship between privatization and economic growth, but it can be understood internal studies have not been enough. Different results have reached about relationship between privatization and economic growth by the researchers. Some of them have found positive relationship between these two variables and some negative. This study is different from other former studies in terms of investigating competitiveness variable and the oil revenues variable importation as a key effective dependent variable on the Iranian economic growth. We are trying to respond this important question that: is there any significant relationship between privatization and competitive situation which be affected on economic growth in Iran? We have used central bank quarterly statistics for the period of 1989q1-2007q4. Then was used Auto Regressive Distributed lag method to characterize relationship between GDP and independent variables. Results showed that: there is a positive relationship between privatization and economic growth in Iran. But competitive or openness situation of economy have not helped to economic growth and is not significant. By the way, the empirical results from the granger causality test show that there is unidirectional causality running from the gross domestic products to foreign direct investment/GDP, investment, inflation rate, privatization/GDPin model. Butit should been said that, there is the mutual causality between oil revenues and economic growth (GDP growth) in Iran. Meanwhile competitiveness variable didn’t have any causality relationship with dependent variable.

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