Quarterly Publication

Document Type : Original Article

Authors

1 PhD student, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran.( Corresponding Author

3 Assistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

10.22050/pbr.2021.261256.1148

Abstract

This paper analyzes the existence of an asymmetric causality relationship between the consumption of hydrocarbon products in four sectors: residential - commercial, manufacturing, agricultural, and transportation, and the economic growth of Iran during the years 1981-2017. To achieve this goal, the effect of positive and negative shocks of the mentioned variables is investigated using the asymmetric causality approach of Hatemi - J (2012). Research results suggest a two - way causal relationship between the positive shocks of economic growth and the consumption of carriers of hydrocarbons in all four residential - commercial, manufacturing, agricultural and transportation sectors. There is a two - way causal relationship between negative economic growth shocks and hydrocarbon carriers’ consumption in agriculture and transportation, and a one - way causal relationship between hydrocarbon energy carriers’ consumption and economic growth in the residential - commercial and industrial sectors. There is no causal relationship between non - directional shocks of hydrocarbon consumption and economic growth

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