The Relationship between Economic Instability with Economic and Social Development in Iran

Looking at the state of the economy after the Islamic Revolution, especially in recent decades, the relative balance of our economy has become an important issue. Sudden changes in important indices such as inflation, exchange rates, exports and imports and unemployment are the proof of this claim and indicate the lack of integrated and consistent economic policies. These factors are among the factors that governments seek to control them to achieve three targets of allocation, distribution and economic stability. In macroeconomic literature, these phenomena are regarded as indicators of economic instability which has impact on economic growth and development. In this paper, the effect of instability parameters on Iran's economic and social development has been studied during the period 1979-2013 using time series data and Vector Auto Regression Model (VAR). The results confirmed the affectability of the economic development from above factors and make clear the attention to these factors in relation to trade policy and economic saga.