The impact of good governance uncertainty and foreign direct investment on employment in Iran Approach: Fuzzy regression

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Industrial Management, Faculty of Literature and Humanities, Islamic Azad University of Kerman, Kerman, Iran.

2 Assistant Professor, Economics of Department, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

3 Associate Professor, Economics of Department, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

Abstract

In the present study, the impact of uncertainty in good governance indicators and the realization of foreign direct investment on employment in Iran has been examined using fuzzy regression with a membership degree of 0.9 for the period from 1990 to 2022. Given the flexibility of the fuzzy regression model, the right, average, and left widths for each of the variables under investigation in conditions of uncertainty (membership degree of 0.9) have been calculated in the optimal state using the wild horse metaheuristic algorithm. The results indicated that among the six good governance indicators, a reduction in uncertainty in the indicators of political stability, quality of laws and regulations, and control of corruption has the highest impact on increasing employment, with coefficients of 0.821, 0.764, and 0.722, respectively. Additionally, foreign direct investment has an impact on employment with a coefficient of 0.614. Considering the comparison of the trends of the right, left, and average widths with the actual employment trend in the country, it can be stated that in recent years, the trends of good governance indicators and the realization of foreign direct investment in the country have not been favorable, as there has been a position for the right width to increase employment. However, the employment trend in the country has been lower than the average width and, in some years, has aligned with or been slightly below the actual employment trend.Considering the comparison of the trends of the right, left, and average widths with the actual employment trend in the country, it can be stated that in recent years, the trends of good governance indicators and the realization of foreign direct investment in the country have not been favorable, as there has been a position for the right width to increase employment. However, the employment trend in the country has been lower than the average width and, in some years, has aligned with or been slightly below the actual employment trend.

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References

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Public Sector Economics Studies
Volume 4, Issue 3 - Serial Number 13
September 2025
Pages 533-562

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History

  • Receive Date: 21 May 2025
  • Revise Date: 29 August 2025
  • Accept Date: 30 August 2025

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