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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

MODELING AND FORECASTING WAR EFFECTS ON MACRO ECONOMICAL VARIABLES OF IRAN

Seyed Mohammad Hosein Sadr, Atefeh Shahabadi Farahani

Open access

In this study, we aim to evaluate effects of the 8-year war between Iran
and Iraq (1980-1988) on economical indices of Iran .The underlying
objective of the paper is to provide support for a model that predicts these
macro economical variables with the GMDH-neural network method. The
macro economical variables that we analyzed include: gross domestic
production (GDP)-investment – consumption- inflation- interest rate– net
export- government budget .The results indicate that investment
decreased, export was less than import therefore net export was negative,
consumption in staple goods increased. Also, real interest rate increased
and nominal interest rate decreased, government had deficit spending and
finally, GDP reduced.

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