Research Paper

Survey of Oil and Non-oil Export Effects on Economic Growth in Iran

*¹Monir Sadat Mirjamali Mehrabadi, ²Ebrahim Nabiuny

and ³Hamed Etemad Moghadam

^1,2&3Jihad Daneshgahi, Markazi province

Emails: nabiuny@yahoo.com ², hamed_etemad_biz@yahoo.com ³

*Corresponding Author’s Email: monir_mirjamali@yahoo.com, Tele fax: +988612217426

   Abstract

In the present article, we are going to examine the effects of oil and non-oil export on economic growth. Along with this concept, we have used the theory of time series and the method of VAR (Vector Auto Regressive) for the dependent variables RGDP (Real Gross National Production), ROEX (Real Oil Export) and RNOEX (Real Non Oil Export) for the years 1973-2007. At the end of the test, it is concluded that both the variables have positive effect on the economic growth of Iran. Considering the different theories about the economic growth in countries dependency to the income of oil, they all agree on the decrease of these dependencies. The increase of non-oil export and suitable policies should be applied to decrease the dependency to the oil income (considering its positive relationship with Iran’s economic growth).

Key Words: Oil export, Non oil export, Economic growth, Iran.