Evaluation of Iranian Economic Resilience during the Years 1996-2013

Resilience is defined as more risk-bearing capacity, rapid return after a certain amount of risk and damage reduction. This study examines resilience of Iranian economy during the years 1996-2013. Resilience Index applies Briguglio and Borman studies to define and measure different components including macroeconomic stability, micro-markets performance, good governance, social development, accuracy of financial policies, monetary policy, effectiveness of administration performance, comprehensive supervision, accuracy of banking system, export diversity, autonomy (freedom) of exports, foreign strength, private debt, net international reserves, and international investment amount. Results indicate that resilience of Iranian economy during the studied period until 2004 had an upward trend, but from 2004 to 2011 had a downward trend. The low resiliency of economy indicates that in the event of an external shock to economy, on the one hand poses a high damage to economy, and on the other hand decelerates economic recovery and its return to normal condition.