Recognition and Explaining the Effect of Competitiveness and Knowledge-based Economics Indicators on the Resilience of Iran's Economy

Document Type : Research Paper

Authors

1 Ph.D. student in Economics, Islamic Azad University, Kerman

2 Associate Professor of Economics, Islamic Azad University, Kerman

3 Professor of Economics, Shahid Bahonar University, Kerman

Abstract

The resilience index refers to the ability of a system to absorb turmoil and reorganization so that the system still maintains the task, structure, specifications, and feedback. This concept was introduced after the 2008 financial crisis economic issues, and its goal is to assess the capability of economic compatibility of a country with shocks and, ultimately, the potential return to the equilibrium level. Under the conditions of the Iranian economy, due to the practice of sanctions in recent years, which has faced many challenges, evaluating the resilience level of different channels is essential. So, this study investigates the effect of competitiveness and knowledge-based economics on the Resilience of the Iranian economy from 1985 to 2019, with mixed frequency, annual and seasonal, using the ARDL-Midas method. The results indicate that in the short-term and long-term periods, the variables of trade (Competitiveness) and innovation (Knowledge-based Economics) on the resilience index have a positive and significant effect. Also, the variables of the ratio of oil revenues to GDP and foreign direct investment have had a positive and significant impact on Resilience, and the variables of government size and inflation rate have had a negative and significant effect on Resilience. Therefore, creating appropriate infrastructure is recommended to use the benefits of the knowledge base and expand competitiveness levels

Keywords

Main Subjects

References

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