Investigating the non-linear effects of the economic sanctions index on the relationship between monetary policy transmission channels and economic growth in Iran

Document Type : Research Paper


1 University of Edalat, Iran.

2 Jamet al Mostafa University - Humanities Higher Education Complex, Iran.

3 Institute of Islamic Sciences and Culture, Iran.

4 Department of Economics, Faculty of Business and Economics, Persian Gulf university, Iran.


Extensive studies have been conducted on the relationship between monetary policy transmission channels and economic growth; however, there is no comprehensive theory in the literature. The relationship between monetary policy channels and economic growth is influenced by many economic and non-economic factors that vary depending on countries' economic and political conditions. A key factor in Iran over the last four decades has been economic sanctions. According to the cause; The purpose of this study was to investigate the non-linear effects of the sanctions index on the relationship between monetary policy transmission channels and economic growth in Iran during the period 1391-1397 with a non-linear approach and using the NARDL method. The findings of this study showed that in the period under review, the exchange rate had a negative and significant effect on economic growth, which has become stronger with the introduction of sanctions in the model. Similar results were obtained for the bank credit variable, with the difference that bank credit has had a positive and significant effect on economic growth, strengthened by the sanctions index in the model. Other results also showed that interest rates had not had a significant effect on economic growth.


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Volume 12, Special Issue
December 2021
Pages 1719-1730
  • Receive Date: 19 August 2021
  • Accept Date: 16 November 2021