A Midas Regression Approach to Measure the Impacts of the Brent Oil and Gold Financial Returns on Iran’s Macroeconomic Indicators

Hard, strict, sound and comprehensive impacts of economic and financial sanctions and bans on Iran Islamic Republic direct this country to different resources out of international markets dominated by the United States. Gold and oil markets are the most important two markets. This research aims to analyse the relationships between Gold and Oil Returns and the main macroeconomic variables of Iran's Islamic Republic. A Mixed-Data Sampling (MIDAS) regression methodology is utilised to realise analysis. This analysis finds that Gold and Brent oil returns have impacts on Iran's economy regarding the unemployment rate, inflation rate and GDP growth methodologically. To reach these results, it utilizes a Mixed-Data Sampling regression methodology (MIDAS) mainly focused on the elimination of lag and frequency differences between variables in time series analysis. These findings show that the economy of the Iran Islamic Republic has vulnerabilities regarding gold and oil prices. Iran Islamic Republic can be impacted by the changes in global economic conjuncture in terms of these two commodities.