A Comparison of the Asymmetric Effects of Monetary Policy on Industries & Service Sector Output in Selected Oil Exporting Countries: A Panel GMM Approach

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Economics, Faculty of Management & Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

2 Professor, Department of Economics, Faculty of Management & Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

3 Professor, Department of Economics, Faculty of Economics, University of Tehran, Tehran, Iran.

4 Assistant Professor, Department of Economics, Faculty of Management & Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

Abstract

Considering the most important industry and the high volume of economic activities of the service sector and the role of monetary policy in these two sectors, as well as due to the activity of monetary Shocks in periods of recession and periods of prosperity.
The main goal of this research is to examine and test the asymmetric effects of Monetary Policy on the added value created by services, industries, and mines in selected oil exporting countries. For this purpose, the generalized moments method (Panel GMM) has been applied for the time period from 2002 to 2020. The results obtained do not confirm the existence of an asymmetry in positive and negative impulses in the industries and mining sector, whilst the existence of positive and negative impulses was found to have an insignificant effect on the growth of the added value of this sector. On the other hand, the existence of asymmetry in positive and negative impulses in the service sector was confirmed, whilst, the effect of negative impulse on the reduction of the value-added growth of the service sector was found to be greater than the effect of positive impulse in increasing the value-added growth of the service sector. In effect, the industry sector of the countries understudy performs poorly in response to asymmetric policies, but the service sector shows a better response to positive and negative impulses due to its expansion in these countries.

Keywords

References

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Journal of Defense Economics and Sustainable Development
Volume 8, Issue 29
December 2023
Pages 153-168

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