Comparative Analysis of the Role of Financial Structure, Labor Market Stickiness, and Industrial Structure in the Asymmetry of Monetary Policy Transmission

Articles in Press

Document Type : پژوهشی

Authors

Zeinab Akbarzadeh pasha ¹

Asghar Abolhasani ²

Yeganeh Mosavi jahromi ³

Alireza Moradi ⁴

Mohammad Nasrollahi ⁵

¹ PhD Candidate in Economics (Monetary – International)

² Professor of Economics,, payam noor university, Tehran, Iran

³ Professor of Economics , payam noor university, Tehran,Iran

⁴ Assistant Professor of Economics,, kermanshah, Iran

⁵ Assistant Professor of Economics، Babol azad university, Iran

https://doi.org/10.22067/mfe.2026.96019.1626

Abstract

The monetary policy transmission mechanism is a central issue in macroeconomics and exhibits considerable heterogeneity across countries due to differences in institutional arrangements and structural characteristics. This study aims to examine the role of structural factors—namely financial structure, labor market stickiness, and industrial composition—in shaping the transmission of monetary policy in the selected countries over the period 2000–2022. To this end, a Panel Conditional Vector Autoregression (PCHVAR) model is employed to analyze the dynamic responses of macroeconomic variables to monetary policy shocks. The results indicate that a contractionary monetary policy leads to a decline in output and a temporary increase in inflation in the short run; however, these effects gradually diminish, and in the long run, evidence of relative monetary neutrality emerges. Nevertheless, the analysis of maximum eigenvalues and forecast error variance decomposition suggests that the structural stability of the economic system in response to shocks is weak and that shocks exhibit high persistence; therefore, the reliability of long-run interpretations is limited. From a policy perspective, the findings underscore the necessity of strengthening financial institutions, developing capital markets, enhancing labor market flexibility, and paying due attention to the industrial structure of the economy as key prerequisites for improving the effectiveness of monetary policy and reducing heterogeneity in its transmission mechanism.

Keywords

Financial structur

, industry mix,

labor market rigidity

, monetary policy asymmetrical

Subjects

• Financial monetary economy

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