The Relationships Between GDP, Export and Investment: Case Study Iran

This study compared the long-term and short-term relationship between GDP, export and investment during the years 1991-2008. Results show there exist a positive and significant long term relationship between investment and export with gross domestic production at 95% confidence level. But the relationship of investment and export is negative. Analysis of the vector error correction model for GDP indicates an error correction coefficient is negative which due to the high value of the GDP in the short run than long-term equilibrium value. In the short term, impact of investment and exports on GDP are positive. Effect of domestic production on investment is positive, but on export is negative.