The study of the effective factors on investment in private sector in Iran

Making capital and investment is the main driving forces of economic development. based on theinvestment sensitivity to the changes of some of macro-economic variables and risk and uncertainty,the present study evaluated the eective factors on investment in private sector in iran during 1980-2007. at rst, the uncertainty variables of real informal exchange rate, nominal interest rate andination rate were calculated by garch model. then, by ardl model, the eect of calculateduncertainty indices besides the main values of the variables and some of the other control variableson investment in private sector in iran was investigated. the estimation results showed the negativeuncertainty eect of the real exchange rate, ination rate and nominal interest rate on investment inprivate sector in short-term and long-term. also, the gross domestic production and ination ratehad signicant and positive and negative eect, respectively on investment in private sector in iran.in this model, there was no relationship between the size of civil expenditures of the governmentand real exchange rate with the private sector investment in our country. the error correction termcoecient showed that moderation to balance is done during more than 3 years.