Determinants of private investment in Iran based on Bayesian Model of Averaging

Due to the importance of investment as one of the effective variables in the economic growth of communities, this study aims at the effects of 19 explanatory variables on private investment, and their ranking in Iran’s economy is analyzed by BMA averaging model. The results show that the growth of stock goods (by probability of 1/00) and, next to that, the growth of oil GDP (by probability of 0/68) are the most important factors in private investment. The variable of the ratio of tax for companies (by probability of 0/50) is in the second stage. Nominal variables such as inflammation rate, money value growth and the remaining resources of banks for the private sector as compared to Non-oil products do not have much importance in private sector investment. In addition to that, interest rates and tax rates were not important during the sample period.