Analysis of Short Run and Long Run Effects of Economic Sanctions on Economic Growth in Iran

Following the economic sanctions that have been imposed on Iran in the years after the Islamic Revolution، always economists were facing this question that; what is the effect of economic sanctions on different economic variables and how much is it? This study aims to analyze the effect of economic sanctions as dummy variable on economic growth in Iran، using Indexing and weighting (determining the importance) of various sanctions that historically imposed on Iran. For this purpose، using time series data and Auto Regressive Distributed Lag (ARDL) model، we analyze the effect of economic sanctions on economic growth from 1978 to 2013. Short-run estimation results show that in the short term weak sanctions had not significant effect on economic growth، but moderate and strong sanctions respectively with coefficients 0. 0098 and 0. 43، has had a negative effect on economic growth. Long-run estimation results show that in long term weak and strong sanctions had not significant impact on economic growth، but moderate sanctions with coefficient 0. 024 has had a negative impact on economic growth. Finally error correction coefficient in model is - 0. 407.