Volume 30, Issue 4 (Winter 2026)
JEPR 2026, 30(4): 189-219 |
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Zarei Z, Ebrahimi I, Hemmati M. (2026). Credit and Fiscal Multipliers in Iran: Evidence from Disaggregated Gross Domestic Product (GDP). JEPR. 30(4), 189-219.
URL: http://eprj.ir/article-1-2301-en.html
URL: http://eprj.ir/article-1-2301-en.html
1- Assistant Professor, Monetary and Banking Research Institute, Tehran, Iran. , zhalezarei@gmail.com
2- Assistant Professor, Monetary and Banking Research Institute, Tehran, Iran.
3- Assistant Professor, Monetary and Banking Research Institute
2- Assistant Professor, Monetary and Banking Research Institute, Tehran, Iran.
3- Assistant Professor, Monetary and Banking Research Institute
Abstract: (899 Views)
The purpose of this article is to evaluate and compare the effects of fiscal and credit policy on Iran's economic growth. For this purpose, the fiscal and credit policy Multipliers have been estimated using annual data (during the period of 1357-1400) and the generalized method of moments (GMM). Also, the fiscal and credit policy Multipliers in sub-sectors of GDP have also been estimated. The model has also been estimated separately for government current and construction expenditures. The results show that the fiscal policy multiplier (2.47) is greater than the multiplier of credit policy (1.48). Also, fiscal policy had the greatest effect on the oil sector and the least on the agriculture sector, and this multiplier coefficient was not statistically significant among the industries and mines and agriculture sectors. The credit policy multiplier has been larger in the two sectors of services and industries and mines compared to other sectors, and this coefficient was not statistically significant in the oil sector. This study shows that the effects of credit policy are lower compared to the effects of fiscal policy on economic growth. This means that credit policies as one of the important tools have not significantly increased the economic growth in Iran. Therefore, it seems that monitoring the allocation of credits should be the most important concern of the monetary policy maker.
Keywords: Fiscal Policy, Credit Policy, Monetary Policy, Economic Growth, Disaggregated Gross Domestic Product (GDP).
Type of Study: Research |
Subject:
Macroeconomics
Received: Apr 19 2025 | Accepted: Dec 21 2025 | ePublished: Jun 29 2026
Received: Apr 19 2025 | Accepted: Dec 21 2025 | ePublished: Jun 29 2026
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