The effect of the financial crisis on macroeconomic variables in Iraq, Iran, and Turkey

This study investigates the effect of the financial crisis on macroeconomic variables, such as gross domestic product (GDP), export, inflation, and exchange rates, in some developing countries, namely Iraq, Iran, and Turkey, from 1980 to 2017. To demonstrate such effects, it performed unit root test...

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Bibliographic Details
Published inEconomic journal of emerging markets Vol. 12; no. 1; pp. 54 - 66
Main Authors Ahmed, Younis Ali, Rostam, Biaban Nwri, Mohammed, Burhan Ali
Format Journal Article
LanguageEnglish
Published Yogyakarta Universitas Islam Indonesia 01.04.2020
Subjects
ARDL
Cointegration analysis
Developing Countries
Economic crisis
EGLS and DOLS) Approach
Emerging markets
Financial Crisis
Foreign exchange rates
LDCs
Macro-economic variables
Macroeconomics
Iran
Turkey
Iraq
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Summary:This study investigates the effect of the financial crisis on macroeconomic variables, such as gross domestic product (GDP), export, inflation, and exchange rates, in some developing countries, namely Iraq, Iran, and Turkey, from 1980 to 2017. To demonstrate such effects, it performed unit root tests, cointegration analysis, and estimated generalized least square and panel dynamic least squares. Findings/Originality: The empirical results show that the financial crisis negatively affects the GDP, export, inflation, and exchange rates of the countries at different levels. The Asian financial crisis shows a significant negative effect on GDP in Iran and Iraq. Global crises exhibit a negative influence on export in all countries. Nevertheless, both Asian and global crises positively affect inflation because financial crises reduce expenditure at the family and government levels. Thus, governments worldwide attempt to minimize the inflation rate.
ISSN:2086-3128
2502-180X
DOI:10.20885/ejem.vol12.iss1.art5