Measurement of the effects of composite indices on Iran's economic growth with an Islamic approach in 1996-2019

Economic growth and development are macroeconomic objectives for increasing welfare and economic-social justice. Several factors affect economic growth but their effects can be better examined using composite indices which are suitable indicators in the economic literature for performance evaluation and knowledge about the gap between the current status and goals of economic programs and policies. Therefore, the present manuscript aimed to provide and measure the composite indices, macroeconomic and social variables, and their effects on economic growth with the economic jurisprudence approach. To this end, the vector error correction model (VECM) was used for the period 1996-2019. The results of the impulse response function (IRF) test indicated that the economic growth of Iran had a very slight negative response to the impulse of the composite indices, including economic security, production and productivity, and property rights in the long term. Therefore, the composite indices, including economic security, productivity, and property rights could not significantly affect economic growth in Iran in the long term while the economic growth showed a positive and stable reaction to the impulse of the economic-social justice index in the long term. Furthermore, the increase in the cooperation, participation and presence of the active population with the ability to work in the field of production and economic activities increased economic growth.