برزو زهره وند

The importance of Currant account and the factors affecting it is one of the most important elements of international trade, which has always been the concern of economists. In general, the main objective of each country's economy is sustainable development, in the sense of internal and external equilibrium. Therefore, given the interplay between the internal and external sectors, any economic policy should be taken in conjunction with this relationship. Given the importance of current account equilibrium in determining the level of national income and employment, as well as in the process of growth and accumulation of capital, developing and developed countries have chosen a different policy and strategy to deal with the limitations of current account. The purpose of this study was to investigate the effect of income inequality and economic growth  on the current account balance (With oil) Iran  using VAR and direct response functions (IRF) and analysis of variance (VD) over time (1979-2016). The variables used in this paper to estimate the model include the current account balance, with the Gini coefficient as the indicator of the inequality of income and Economic growth at constant prices. The results of the research findings during the review period show that the positive shock to improving the income inequality has a negative effect on Iran's current account and the positive shock of increasing economic growth has a positive effect.

The imbalance in government spending and revenue sources, due to the deficit created in the current account balance, In addition to the impact on the macroeconomic parameters has also consequences such as, budget imbalances and private savings, and fluctuations in economic growth. These imbalances in income sources and government spending may indicate the need to more import and weaken the foundations of production, supply of the economy, and the competitiveness for each country in internationally levels. In such a situation, the incorrect pattern of imports of intermediate and capital goods instead of consumer goods causes international borrowing, reduced national employment in favor of foreign employment, reduced economic growth, dependency and sanctions, and loss of national resources and wealth. The purpose of this study was to investigate the effect of income inequality on non-oil deficit of Iran using the ARDL model in time interval (1978-2016). The variables used include the deficit of current account without oil, the Gini coefficient as an indicator of the estimated income inequality, economic growth without oil, and the real exchange rate.The results of research findings during the study period show that improving inequality of income and economic growth in the long run reduces government expenses and current account deficit and the increase in the real exchange rate will increase government expenses and current account deficit.