ISSN: 2222-6990
Open access
Non-linear dynamic systems show different behaviors so that they can be applied to interpretation many of the seemingly random economic phenomena. The chaos theory provides a new approach to investigating the changes trend of non-linear dynamic systems in monetary and financial markets. This paper investigates the behavior of economic growth in Iran using the chaos theory, BDS and bootstrap test, maximum Lyapunov exponent, the Hurst exponent and phase space reconstruction. The aim of this study is to examine whether economic growth has an independent identical distribution or follows from a non-linear (random or chaotic) process. The results of BDS test and the Hurst exponent indicates that economic growth has a non-linear process. The results of two chaotic tests includes maximum Lyapunov exponent and phase space reconstruction also confirmed the existence of chaos in GDP.
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Copyright: © 2021 The Author(s)
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