Volume 26, Issue 3 (Autunm 2021)
JPBUD 2021, 26(3): 101-130 |
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Sajjadieh Khajaviee F, Bakhtiari S, Ghobadi S. (2021). The Impact of Country Risk Management on Economic Growth in the Selected OIC Countries. JPBUD. 26(3), 101-130. doi:10.52547/jpbud.26.3.101
URL: http://jpbud.ir/article-1-2004-en.html
URL: http://jpbud.ir/article-1-2004-en.html
1- Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
2- Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran ,bakhtiari@khuisf.ac.ir
3- Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
2- Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran ,
3- Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
Abstract: (3312 Views)
The economic performance to reduce country risk, in which the existing economic, social, and political conditions negatively affect the capacity to repay foreign debt and attract foreign direct investment, is one of the prominent issues in economic growth. Accordingly, the main purpose of this study is to evaluate the impact of country risk management on the economic growth of selected member countries of the Organization of Islamic Cooperation during the period (2006-2019). For this purpose, a composite index was developed by taking into account the most important indicators of economic performance related to country risk, including macroeconomic factors, social, political, and legal conditions, and characteristics of the banking system. Then, by using the Generalized Method of Moments (GMM), the effect of this index on the economic growth of the selected member countries of the Islamic Cooperation Organization was evaluated. The model estimation results show a significant and direct relationship between economic performance to reduce country risk and economic growth. The results also imply the significant and direct effect of trade openness, labor, and gross capital formation on economic growth. Meanwhile, inflation has had a significant and negative impact on economic growth.
Type of Study: Research |
Subject:
Macroeconomics
Received: Apr 23 2021 | Accepted: Oct 17 2021 | ePublished: Mar 06 2022
Received: Apr 23 2021 | Accepted: Oct 17 2021 | ePublished: Mar 06 2022
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