The Prediction of the Relationship between Moral Corruption, Sanctions and Economic Fluctuations on Foreign Direct Investment in Iran

Document Type : Scientific paper

Authors

1 PhD Student in Economics, Department of Economics, Qeshm Branch, Islamic Azad University, Qeshm, Iran

2 Department of Agricultural Economics, Faculty of Science and Research, Islamic Azad University, Tehran, Iran

3 Department of Economics, Faculty of Management and Economics, Hormozgan University, Bandar Abbas, Iran

4 Department of Economics, Faculty of Humanities, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract

 Economic sanctions have become a special tool in international relations since the Cold War, which seems more practical and more moral than military warfare. The purpose of this study is to investigate the relationship between economic sanctions, corruption and economic fluctuations on investment. The present research investigates the macroeconomic indicators of trade volume, corruption and political risk, profit rate, liquidity, economic growth, economic sanctions, human capital, exchange rate, research and development expenditures, as well as investment in Iran during the years 2000 to 2019 using an applied correlational method. Furthermore, to analyze the data, Levenberg-Marquardt and neural network analysis of perceptron and artificial intelligence have been used. The fitting of the research model with a basic hypothesis has been confirmed. The results show that the model is estimated with the least error and the fitted line is approximately equal to the target value. Among the indicators, human capital has the most impact and economic growth has the least impact on investment while the impact of the other variables is intermediate.

Keywords

References

 
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Macroeconomics Research Letter
Volume 15, Issue 30
January 2021
Pages 232-251

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History

  • Receive Date: 17 October 2020
  • Revise Date: 27 April 2021
  • Accept Date: 17 May 2021

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