Balance of payment shocks on the economic growth of Middle Eastern countries: Evidence from a global vector auto regression approach (GVAR)

Document Type : Original Article

Authors

mehdi shirafkan lamsso

yaser sistani badooei ¹

Zubaidah Baloci ²

¹ lecturer Academic Member of Economy , Baft Higher Education Center , Shahid Bahonar University of Kerman , Kerman , Iran.

² PHD Candidate Student of Economics, Tehran University Center, Tehran.iran.

https://doi.org/10.22067/erd.2024.82807.1185

Abstract

One of the basic priorities of countries is Achieving high economic growth So that the country's balance of payments is one of the influencing factors. Therefore, One of the goals of macroeconomics is to establish internal and external balance. The meaning of internal balance, Equilibrium at the production level of full employment and balance in the government budget And the meaning of external balance the balance is in the balance of payments. In economics, the balance of payments or for short BOP It is a concept that shows the obligations of a country to the rest of the world and the relationship between the demands of that country from the rest of the world. The balance of payments to the state of the financial balance and savings of the private sector, which are considered to be the main factors of economic growth, It is very close and balance of payments reflects the ratio of investment to savings. Also, the country's balance of payments is equal to the difference between exports and imports, so that it represents the total transactions of domestic people with foreigners in the market of goods and services.

Keywords

balance of payments shock

economic growth

the Middle East

GVAR Model

Subjects

• International Economics

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