Journal of Empirical Economic Research

The Asymmetric Effect of Covid - 19 and Economic Policy Uncertainty on Financial Development of Iranian Economy: Quantile Regression Approach

Document Type : Original Article

Authors

zinab asakereh 1
hamidreza abdollahian 2
mohammad amin kuhbor 1

1 Department of Economics and Marine Insurance, Faculty of Economics and Management, Khorramshahr University of Marine Sciences and Technology, Khorramshahr, Iran

2 Assistant Professor, Department of Economics and Marine Insurance, Khorramshahr University of Marine Sciences and Technologies

10.22113/jeer.2025.467096.1007
Abstract
The Covid-19 pandemic has created uncertainty in various sectors of the national and global economy, including the financial sector. This disease has had a major impact on societies, causing health and financial crises and pushing economies to the brink of recession. This study focuses on the financial development of Iran during the COVID-19 pandemic and the effect of oil price, gold price and uncertainty of Iran's economic policies on the financial development of Iran's economy. In this study, the quantile regression approach was used to evaluate the daily data of the variables from 19 February 2020 to 10 September 2021. The empirical results of this study show that the increase in the number of registered Covid-19 patients has a positive effect on financial development, while the price of gold and the uncertainty of Iran's economic policies have a negative correlation with financial development. As for the economic policy uncertainty variable, it has a negative effect on Iran's financial development in the lower and middle deciles, but a positive effect in the upper deciles. The final result of this study is the confirmation of the existence of asymmetry in the impact of Covid-19 on Iran's financial development.

Keywords

COVID
Uncertainty
Financial
Quantile
Journal of Empirical Economic Research
Volume 1, Issue 2
Autumn 2024
Pages 1-15

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