Reviews of mutual interest rate effects to macroeconomic variables in Islamic and un-Islamic countries

mohammadi, Hosein; mahmoudi, mehdi

doi:10.29252/jemr.7.28.103

Volume 8, Issue 28 (7-2017) jemr 2017, 8(28): 103-138 | Back to browse issues page

‎ 10.29252/jemr.7.28.103

‎ 20.1001.1.22286454.1396.7.28.4.8

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mohammadi H, mahmoudi M. Reviews of mutual interest rate effects to macroeconomic variables in Islamic and un-Islamic countries. jemr 2017; 8 (28) :103-138
URL: http://jemr.khu.ac.ir/article-1-1416-en.html

Reviews of mutual interest rate effects to macroeconomic variables in Islamic and un-Islamic countries

Hosein Mohammadi ^*

¹, Mehdi Mahmoudi²

1- Ferdowsi University of Mashhad , Hoseinmohammadi@um.ac.ir
2- Ferdowsi University of Mashhad

Abstract: (7070 Views)

Interest rate is one of the most important policy variabels in macroeconomic. Global financial crises and big debt in some countries around the world, make the importance interest rate more explicitly. In the carrent study, the effect of interest rate, inflation, government investment and expenditure on GDP capita per was investigated using panel data approach. Forthermore panel VAR method was used to consider the effects of each mentioned variables on each other and investigating causality relationships between these variabls. 20 Islamic and 19 Non-Islamic countries during 1990-2014 were selected for this study. The results show that in both Islamic and Non-Islamic countries, interest and inflation rate have a significant negative effect on GDP per capita. Government investment in both groups of countries have a significant positive effect on GDP per capita. These results are inline with economic theories. Finally, government expenditures in these groups of countries have different effect on GDP per capita. also lowering interest rate Non-Islamic countries has a considerable effect on other variables.

Keywords: Interest Rate, Per capita GDP, Inflation, Investment, Panel VAR

Full-Text [PDF 584 kb] (7296 Downloads)

Type of Study: Applicable | Subject: اسلامی
Received: 2016/05/16 | Accepted: 2017/08/15 | Published: 2017/09/17

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