Economic Growth
samad hekmati farid; Yosef Mohamad zadeh; Diman Khazali
Volume 6, Issue 22 , January 2016, , Pages 130-119
Abstract
The aim of this paper is investigating the effect of business regulations and intellectual property rights on economic performance. More precisely, we attempt to examine this issue for a sample of 46 middle and upper middle income countries over the period 2004-2013. We use the World Bank Doing Business ...
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The aim of this paper is investigating the effect of business regulations and intellectual property rights on economic performance. More precisely, we attempt to examine this issue for a sample of 46 middle and upper middle income countries over the period 2004-2013. We use the World Bank Doing Business indicators as measures of business regulations and panel data model is used for data analyses.
The results show that foreign direct investment, fixed capital formation, good governance (role of law and political stability), intellectual property rights and doing business (starting a business, dealing with construction permits, and getting credit) indexes have the positive and significant effect on economic growth in selected middle and upper middle income countries.
Economic Growth
Hossein Ostadi
Volume 6, Issue 24 , September 2016, , Pages 133-144
Abstract
Economic growth is one of the most important goals of macroeconomics in current communities and its rate shows the rate of increase or reduction of GDP and improvement or reduction rate of welfare of people. This study evaluates the important factors of economic growth in Iran based on the effects of ...
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Economic growth is one of the most important goals of macroeconomics in current communities and its rate shows the rate of increase or reduction of GDP and improvement or reduction rate of welfare of people. This study evaluates the important factors of economic growth in Iran based on the effects of subsidy targeting plan. The study period is 1991-2012 and the study variables are including time series of Iran economy. After performing unit root test and evaluation of the stationary of variables based on Augmented Dickey-Fuller Test (ADF), the model coefficients are estimated by concurrent equations system and Two-Stage Least Square Method (2SLS) in Eviews software. The study findings show that value added of various economic sectors has positive and significant impact on GDP and economic growth. As the government size is evaluated by government costs to GDP ratio, the coefficient of government expenditures variable is negative and significant at level 6% statistically. The coefficient of public level variable of prices is negative and significant and it shows that inflation phenomenon and increasing the price of energy carriers increase production costs in short-term and GDP growth rate is reduced. The elimination of paid subsidies to manufactures and increases of production costs of economic enterprises and serious economic sanctions reduce economic growth rate.
Human Capital
gholam reza fatahi bayat; ahmad godarzi; mohammadreza goodarzi
Volume 7, Issue 25 , November 2016, , Pages 133-146
Abstract
Although the development of agriculture is a function of the economic, social and environmental factors, it seems that the development of agriculture can be a function of the change in innovative human capital and the evolution of knowledge and skills to ...
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Although the development of agriculture is a function of the economic, social and environmental factors, it seems that the development of agriculture can be a function of the change in innovative human capital and the evolution of knowledge and skills to enhance the efficiency, effectiveness and stability in the sector.In the present paper, the fundamental question is there a significant relationship between four innovative human capitalvariables and agricultural development? In order to answer the question, analytical-descriptive research method was used. Findings indicate that there is a significant relationship between the variables of education, health, official agencies, non-official agencies and innovative human capital and development of agriculture. Therefore, it can be said that the relationship between the variable of innovative human capital and developmentof agriculture is positive. The softwares of SPSS and LISREL are used.
Economic Growth
Mohammad Ali Ehsani; Saleh Taheri Bazkhaneh
Volume 8, Issue 30 , April 2018, , Pages 133-145
Abstract
Post Keynesian growth model considers the use of production factors as a function of production and introduces demand as the main determinant of economic growth. Accordingly, Thirlwall (1979) presented a model suggesting that demand is restrained by the balance of payments deficit and turns into substantial ...
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Post Keynesian growth model considers the use of production factors as a function of production and introduces demand as the main determinant of economic growth. Accordingly, Thirlwall (1979) presented a model suggesting that demand is restrained by the balance of payments deficit and turns into substantial limitations to achieve higher economic growth rate owing to balance of payments deficit. This model is known as Thirlwall law or “balance of payments constrained growth model”. In this model the maximum rate of economic growth consistent with the balance-of-payments equilibrium is figured out using income elasticity of import and export. Identifying the barriers to achieving the target growth rate has been turned into one of the most controversial economic issues because of the challenges of low economic growth in Iran. Thus this study is going to provide an answer to the question that, based on Thirlwall law, Whether the balance of payments deems obstacles to the target growth rates of development programs for the Iran’s economy or not? To accomplish this, first the long run cointegration relationship of import and export demand functions was approved by autoregressive distributed lag model (ARDL). Then, regarding the importance of the elasticities of above functions on the results of the study and removing the structural instability of the model coefficients, time–varying parameter (TVP) and Kalman – filter were used to estimate the elasticities. Finally the validity of Thirlwall law was not confirmed during 1984-2013 applying Wald Test. Therefore, it can be claimed that aggregate demand has not restricted the economic growth through the balance of payments. Low income elasticity of import, combination of imports, restrictions on imports and dependence of foreign trade on oil revenues are the most important reasons for the results.
Human Capital
Mahdi Shahraki; simin ghaderi
Abstract
This paper investigated the probability of employment of mothers and children (aged 10–18) in Iranian urban household and the factors which influence them with expansion of neoclassic model. Biprobit model and the Stata Software were used to that end. The sample size includes 6517 Iranian urban ...
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This paper investigated the probability of employment of mothers and children (aged 10–18) in Iranian urban household and the factors which influence them with expansion of neoclassic model. Biprobit model and the Stata Software were used to that end. The sample size includes 6517 Iranian urban households (in 2014) who had children aged 10–18. The data was extracted from the Urban Household National Survey. 46. 4% of the sample are females and 54. 6% are males. 93. 97% of children are unemployed and 6. 03% are employed. The results showed that children do not necessarily drop out of school to work and be employed. An increase in the level of education of parents negatively influences the employment of the children aged 10–18, and the effect of father’s education is more decisive in this regard. Furthermore, the increasing of father’s education reduces the possibility of mother’s employment in this household. The substitution effect showed that mother’s and child’s employment are substitutes, as is father’s employment with mother’s and child’s employment. The wealth effect showed that an increase in household per capita income reduces the possibility of children’s employment and raises the possibility of mother’s employment. Furthermore, the size of the family reduces the possibility of mother’s employment and raises the possibility of children’s employment.
Mozhgan Moallemi
Abstract
The economic vulnerability of some countries stems from the fact that their economies are largely influenced by forces outside their control. Areas that are most affected by economic shocks should promote the position of a resilient economy in their policies. This paper tries to examine the impact of ...
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The economic vulnerability of some countries stems from the fact that their economies are largely influenced by forces outside their control. Areas that are most affected by economic shocks should promote the position of a resilient economy in their policies. This paper tries to examine the impact of economic vulnerability on the development index of MENA countries in the 1995-2015 period using the econometric method and panel data approach. The results of the study indicate a negative and significant relationship between economic vulnerability and development index in the target countries. The innovation of this study is to calculate the impact of economic vulnerability in different countries. Iran is ranked sixth in terms of the fragility of the economy against economic shocks. Countries that are ranked worse are often those countries that either face political instability (domestic wars) or have a strong dependence on oil revenues. In this way, policies such as reducing dependence on oil revenues and paying attention to political stability are introduced as tools for controlling and strengthening the economy against external economic shocks.
بازار سرمایه
mohammad doudangi
Volume 6, Issue 23 , May 2016, , Pages 147-131
Abstract
The investments are represented as a driving force in economic theory and continual, stable and essential economic growth is a necessary condition for social-economic development. The increase of investments volume leads to growth of production, income, value added, wealth, employment and reduction of ...
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The investments are represented as a driving force in economic theory and continual, stable and essential economic growth is a necessary condition for social-economic development. The increase of investments volume leads to growth of production, income, value added, wealth, employment and reduction of poverty level. The issue of capital and investment in the economic development is of special importance, therefore, in order to achieve an advanced and dynamic economy, governments have paid special attention to the matter through enactment and enforcement of certain laws and regulations, provision of necessary infrastructures, optimal use of the resources, facilities, capacities, capabilities as well as application of scientific and logical management so as to pave the way for further development of their respective countries and communities. The main goal of this article is to analyse internal and foreign investment’s attraction problems and difficulties and propose suitable solutions. The main scientific results of the research are: - It is shown that oil prices and oil incomes fluctuations, international sanctions, foreign exchange rates fluctuations and high inflation rate, have lead to increase FDI in Iran. Despite these positive tendencies the attraction level of FDI is still on the insufficient level. - The evaluation results of econometric models showed the effects of national income, GDP, government expenses, inflation rate, openness degree of economy, human capital and FDI on the total volume of investments. As a result of research, new approaches were developed. The results represented in this article can be used in the programs aimed at improving an investment environment in Iran and in the countries with the similar problems. Also, respective legislative reforms is necessary to improve FDI in Iran.
Human Capital
ali younessi
Abstract
In macroeconomic literature, the growth of human capital is so important that if economic growth occurs and this growth cannot improve the condition of human capital, it seems that the efforts have been fruitless. Human capital is measured through the HDI index, and due to the need to improve it, many ...
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In macroeconomic literature, the growth of human capital is so important that if economic growth occurs and this growth cannot improve the condition of human capital, it seems that the efforts have been fruitless. Human capital is measured through the HDI index, and due to the need to improve it, many studies have been conducted in this field.Human capital in any country is based on the state of human capital in the provinces of the country. Providing better services to human capital will improve this huge capital, and achieving it requires the existence of sufficient funds and powers in the provinces. The vastness of the country may not allow the government to optimally allocate resources, so usually local authorities try to have more authority for the growth of human capital through various pursuits and bargaining, which increases the authority of the governor, which is financial decentralization.Financial decentralization is a multi-dimensional process in which some powers are transferred from the central government to the governors, and the most important of which is the return of all revenues of each province to the same province and the sending of grants to the provinces through the central government.The results of the research show that the increase in financial decentralization and the return of revenues from each province to the same province and even grants from the central government have a significant positive effect on the amount of public spending, economic growth, reducing the population of low-income people.
s
majid karimirizi; Mohammadhadi Sobhanian; Mohammad Qezelbash
Abstract
During the last decade, the use of Islamic financial bonds in the form of issuing new bonds, converting government's non-debt debts into financial bonds, the clearing of government bond debts from the non-banking sector to the banking network and from the banking network to the central bank has increased. ...
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During the last decade, the use of Islamic financial bonds in the form of issuing new bonds, converting government's non-debt debts into financial bonds, the clearing of government bond debts from the non-banking sector to the banking network and from the banking network to the central bank has increased. Based on this, the present research analyzes the macroeconomic consequences of financing the government of the Islamic Republic of Iran in two ways, the traditional approach (non-securities) and the issuance of Islamic securities through the dynamic stochastic general equilibrium model of DSGE on the main economic variables including inflation, investment , employment and economic growth. For this purpose, based on past experimental studies and seasonal data of Iran's economy during the period (1990:1 – 2021:4), simulation has been done and instantaneous reaction functions of macroeconomic variables to debt shocks. Conventional and financial bonds of the government to the central bank, banking network and the non-banking sector should be reviewed. The obtained results show; Financing the government by using debt securities will generally lead to investment growth, prevent the increase in inflation compared to the method of financing through non-debt debt, and create economic growth. Also, the effects of this on employment are assessed as positive in government bond debts to the banking network and to the central bank, and negative in government bond debts to the non-banking sector.
Economic Growth
Majid Feshari
Volume 8, Issue 31 , June 2018, , Pages 135-150
Abstract
The investigation of relationship between real exchange rate volatility regime and FDI is one of the main issues in macroeconomics and has been considered empirically in recent years. Economic activity in the world and in every moment of life is faced with a variety of risks and uncertainty. Through ...
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The investigation of relationship between real exchange rate volatility regime and FDI is one of the main issues in macroeconomics and has been considered empirically in recent years. Economic activity in the world and in every moment of life is faced with a variety of risks and uncertainty. Through of the uncertainty, it can be noted that the phenomenon of real exchange rate risk. This study intends to investigate the impact of real exchange rate fluctuations on foreign direct investment with annual data and during the 1974-2016, by using a Markov Switching on Iran deal. The results suggest that, real GDP as an indicator of the size of economy and trade openness have a positive and significant effect, real exchange rate has a positive impact on foreign direct investment in Iran. Hence, the decreasing of real exchange rate volatility through the control of domestic price fluctuations especially in the situation of high volatility is the main policy implication of this study to emprovement of FDI in Iran.
total factor productivity of production؛
Abolfazl Shah-Abadi; Sara Sari Gol
Volume 7, Issue 28 , September 2017, , Pages 141-164
Abstract
Oil plays an important role in financing the country and can be used as a positive tool for improving total factor productivity and can reduce technical gap with developed countries. But most of the oil countries with oil revenues, despite the considerable value of these resource revenues, do not have ...
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Oil plays an important role in financing the country and can be used as a positive tool for improving total factor productivity and can reduce technical gap with developed countries. But most of the oil countries with oil revenues, despite the considerable value of these resource revenues, do not have appropriate economic performance. Therefore, this study utilizes a system of simultaneous equations to evaluate the direct and indirect effects of oil on the economy's total factor productivity during the period 1978-2013. The results by 3SLS show, the direct effect of oil revenues on total factor productivity is negative and significant. Also the effect of oil revenues on the equations of human capital accumulation, domestic research and development accumulation and financial development equations are negative and significant and in the research and development spillovers of trade partners and information and communication technology accumulation equations are positive and non-significant. According to the results, the effect of human capital, domestic research and development accumulation, research and development spilloversof trade partners, and information and communication technology equations are positive and significant and the effect of financial development on total factor productivity is positive and non- significant. Therefore, it is expected that politicians and decision-makers with the management of appropriate resources (coordination of supply and demand side policies with a focus on the development of knowledge-based components market) take steps in order to create endogenous technical change and improve total factor productivity.
ا
mehdi shabanzadeh; emran taheri; farshid Farshid Riahi Dorche
Volume 7, Issue 27 , July 2017, , Pages 143-156
Abstract
Iran as a developing country, having massive energy resource endowments is one of the examples of growth pattern with pressure on natural resources. energy as inputs in agriculture of Iran has particular importance. Reviewing the energy consumption in the agricultural sector, shows that, along with increased ...
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Iran as a developing country, having massive energy resource endowments is one of the examples of growth pattern with pressure on natural resources. energy as inputs in agriculture of Iran has particular importance. Reviewing the energy consumption in the agricultural sector, shows that, along with increased production and consumption of energy, including oil products and electricity, the value added of this sector is increased during the different years. But the fundamental question that arises is what causes the expansion of energy consumption in the agricultural sector of Iran. Is this increase was influenced by the expansion of trade and development? With this approach, in this study was investigated the relationship between economic development, diversification, trade liberalization and energy intensity in agriculture of Iran. In order to achieve this goal, by using modeling algorithms Fomby, relationship between diversification index, the share of agriculture in GDP and trade liberalization with energy intensity identifying and then in the framework of Johansen-Juselius cointegration model was examined for the period 1981-2012. The drought in 2008 as an effective dummy variable were considered in the short term. The results of this study showed existence of long-term relationship between the variables. So that, the effect of diversification and trade liberalization on energy intensity were positive and effects of share of agriculture was negative on energy intensity. The diversification was the most effective variable on energy intensity index. Because with a 1% increase in diversification, energy intensity will be reduced by 12.31%. The error correction coefficient was significant at the level of 1%. This subject shows that energy intensity shall be adjusted towards the long-run equilibrium by 0.09% per year.
Economic Growth
mohammad rezaei; Kazem Yavari; Morteza Ezzati; Mansour Etesami
Volume 6, Issue 22 , January 2016, , Pages 144-131
Abstract
This paper examines the effect of oil resource abundance on economic growth through the budget and external sector imbalances. The three equations -that have been extracted from theoretical explanation-estimated simultaneously, using 3SLS for the period 1973-2012. We find negative effects of non-oil ...
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This paper examines the effect of oil resource abundance on economic growth through the budget and external sector imbalances. The three equations -that have been extracted from theoretical explanation-estimated simultaneously, using 3SLS for the period 1973-2012. We find negative effects of non-oil budget deficit and non-oil trade deficit on economic growth. According to the estimations, budget deficit has caused the trade deficit, but the reverse is not true. So, it can be said twin deficit hypothesis is not confirmed. The effect of oil revenues and real exchange rate on non-oil trade deficit is negative and significant. Government spending has a positive effect on the budget deficit that is consistent with theoretical expectations. The impact of oil revenues on the non-oil trade deficit is positive and significant. In general, it can be said that although the impact of oil revenues on economic growth is positive, these incomes decrease economic growth through the exacerbate imbalances such as budget deficits and trade deficits.
Economic Growth
khaled ahmadzadeh; sholeh Nasri
Volume 8, Issue 30 , April 2018, , Pages 145-166
Abstract
The main objective of this study is investigating the effect of economic and social infrastructure on economic growth gap within the framework of panel data method among Iran's provinces during the period (2006-2012). In this context, conditional and non-conditional convergency hypothesis related to ...
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The main objective of this study is investigating the effect of economic and social infrastructure on economic growth gap within the framework of panel data method among Iran's provinces during the period (2006-2012). In this context, conditional and non-conditional convergency hypothesis related to province's economic growth has tested. The results show endorsement of both types of convergency of economic growth in the provinces of Iran. Economic infrastructure including communications and energy has a significant positive influence on economic growth. By entering the economic infrastructure variables in the equation of convergency the economic growth gap in the regions is reduced. Combined index of social infrastructure has the significant negative impact on economic growth in provinces. So that there are significant positive effect of health expenditure and the significant negative impact of education expenditure on economic growth in provinces.Therefore in order to reduce the gap in economic growth in the country's provinces, paying more attention to economic infrastructure and health sector and to review the allocation of resources in the educational sector is recommended.
Energy
Atefeh Taklif; Teymoor Mohammadi; Mohsen Bakhtiar
Volume 7, Issue 25 , November 2016, , Pages 147-161
Abstract
In this paper, optimal development of Iran’s power sector over a long-term period from 2015 to 2050 is investigated. In this paper a system-engineering optimization model (MESSAGE) has been used to explore the medium to long-term power supply options. Minimization of the total system costs for ...
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In this paper, optimal development of Iran’s power sector over a long-term period from 2015 to 2050 is investigated. In this paper a system-engineering optimization model (MESSAGE) has been used to explore the medium to long-term power supply options. Minimization of the total system costs for the whole study period is the criterion used for optimization of the MESSAGE model. The main focus of this study is analyzing penetration of renewable energy sources under different scenarios. The main scenarios are defined based on the fossil fuel prices and demand changes. Moreover, the sensitivity analysis is performed to evaluate the impact of the discount rate on the main results. The results indicate that the total installed capacity would be 160 GW in 2050 under an optimistic scenario, while BAU scenario calls for 250 GW capacity in the same year. The share of renewable energy sources and nuclear power plants would achieve to 25% and 15% under the optimistic condition. The findings reveal that development of green technologies requires a reasonable discount rate below 8%.
Economic Growth
Ramezan Hosseinzadeh; Mahmoud Espandar
Abstract
Export is one of the important factors affecting the production of various sectors of the economy. Therefore, this study examines the effect of export change on the production of sectors in Iran during 2006-2011 using input-output analysis. In order to achieve this goal, the country's input-output tables ...
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Export is one of the important factors affecting the production of various sectors of the economy. Therefore, this study examines the effect of export change on the production of sectors in Iran during 2006-2011 using input-output analysis. In order to achieve this goal, the country's input-output tables have been used in the years 2006 and 2011 and the structural decomposition analysis (SDA) technique has been used. Based on this technique, the total change in the country's exports is divided into two factors: the change in the total volume of exports (with a constant export structure) and the changes in structure of exports (with a constant volume of exports). The results show that the change in the structure of exports (with the constant amount of exports) increased the production of the economy by 51947.51 billion Rials. Also, changes in the volume of exports (with a constant export structure) has led to 1270999.65 billion Rials increase in the total output of economy. The total change in exports (summation of volume change and structure change effect) has also led to an increase 1322947.16 billion Rials in total output of the economy.
total factor productivity of production؛
Mehdi Fathabadi
Volume 8, Issue 29 , December 2017, , Pages 156-145
Abstract
This study examines the impact of intellectual capital on changes in productivity and efficiency in Iran’s insurance firms for period 2008-2013. First, it estimated the Malmquist productivity index (MPI) and efficiency index with data envelopment analysis (DEA) approach. Second, this paper examines ...
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This study examines the impact of intellectual capital on changes in productivity and efficiency in Iran’s insurance firms for period 2008-2013. First, it estimated the Malmquist productivity index (MPI) and efficiency index with data envelopment analysis (DEA) approach. Second, this paper examines the impact of intellectual capital components (human capital, structural capital, financial capital) on changes in productivity and efficiency through panel data regressions. Our MPI findings indicate that most of insurance firms experienced decrease in productivity over the sample period; which it is due to decline in efficiency. The fixed effects estimation results reveal that intellectual capital and its individual components have significantly positive impacts on changes in productivity and efficiency of insurance firms. We suggest that general insurers in Iran should invest in intellectual capital, including improving their managerial skills, to gain sustainable growth in productivity. The findings of this study may lead to a better understanding of the relative changes in total productivity of general insurance firms. By identifying changes in efficiency and productivity, better management decisions can be made to achieve greater productivity.
ARDL
zahra karimi moughari; Mehrangiz Gholamreza
Abstract
The share of taxes to total public revenues differs among countries, and the main factors that have been discussed as the cause of the difference in the tax structure are the level of development of countries that are typically represented by gross domestic product per capita, productive expertise, or ...
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The share of taxes to total public revenues differs among countries, and the main factors that have been discussed as the cause of the difference in the tax structure are the level of development of countries that are typically represented by gross domestic product per capita, productive expertise, or the structure of the economy; external factors such as the level of foreign direct investment and trade. The amount of public debt and public policies, including exchange rates, inflation and fiscal policies, government efficiency and organizational factors, such as political stability, accountability and transparency, civil and political rights, education levels, general expenses for education, etc, are also determinants of tax revenue. The purpose of this study was to investigate the effect of development indicators on the tax revenues of Iran during the period of 1979-2017 based on the Autoregressive Distributed Lag Model (ARDL) method. Based on the results of this study, the increase of per capita GDP in the country has a positive effect on the ratio of direct taxes to GDP, but has a negative and significant effect on the ratio of indirect tax to GDP. Also, the impact of the human development index on the ratio of direct taxes and indirect taxes to GDP is positive and significantand the effect of the index of inequality of income distribution, that is the Gini coefficient, on the ratio of direct taxes and indirect taxes to GDP, was negative and significant. Finally, the effect of the combined development index on the ratio of direct taxes to GDP as well as the ratio of indirect tax to GDP has been positive and significant. Also, the country's oil revenues have a negative and significant effect on the ratio of direct taxes and indirect taxes to GDP.
Energy
Elham Nobahar; Neda Sadeghi
Abstract
Energy, as one of the most important factors of production, plays a crucial role in the economic growth of countries, but in today's world, addressing economic growth issues without considering the aspects of sustainable development and intergenerational consequences is impossible. Considering the importance ...
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Energy, as one of the most important factors of production, plays a crucial role in the economic growth of countries, but in today's world, addressing economic growth issues without considering the aspects of sustainable development and intergenerational consequences is impossible. Considering the importance and differences of renewable and non-renewable energies in the sustainable development of countries, the main purpose of this study is to examine the causal relationship between economic growth and the consumption of renewable and non-renewable energies in the D8 and G7 countries. Using two causality approaches, Dumitrescu-Hurlin (2012) and Konya (2006), this study investigates the relationship between these variables over the period from 2000 to 2022. The findings of this study reveal a unidirectional causality from GDP to renewable energy consumption in the D8 countries. Additionally, no causal relationship is observed between non-renewable energy consumption and GDP in these countries. In other words, in the D8 countries, economic growth is not influenced by energy consumption; however, as economic growth increases, these countries tend to adopt renewable energy sources. On the other hand, in the G7 countries that are more developed, the results indicate a unidirectional causal relationship from the consumption of renewable energy to GDP. Furthermore, the findings demonstrate a unidirectional causality from domestic gross production to non-renewable energy consumption. Hence, in the G7 countries, economic growth is influenced by the consumption of renewable energy and, in turn, impacts the consumption of non-renewable energy.
Economic Growth
Hassan Khodavaisi; Ahmad Ezzati Shourgoli
Volume 8, Issue 31 , June 2018, , Pages 151-168
Abstract
Barro (1990) by adding government spending into the growth models showed that the amount of government activities have a positive impact on economic growth, but if government spending is increased over a certain size, government activities will have a negative impact on economic growth. In this direction, ...
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Barro (1990) by adding government spending into the growth models showed that the amount of government activities have a positive impact on economic growth, but if government spending is increased over a certain size, government activities will have a negative impact on economic growth. In this direction, this paper by using theoretical Barro growth model and an empirical model for Iranian economy tries to investigate the impact of current and capital government expenditure on output growth using ARDL approach and state-space models applying quarterly data during 1967-2014. First, using Lumsdaine-Papell (1997) unit root test and Gregory-Hansen (1996) and Saikkonen and Lutkepohl (2002) cointegration test we determine the degree of integration and cointegration of the variables. The results indicate that there are structural breaks in the variables under study and these breaks affect the relationship between variables. Then we use ARDL model, considering structural breaks, to determine threshold level for current government expenditure which is 15.2 percent and for capital government expenditure which is 8.2 percent of GDP per head. Regarding Lucas theoretical critique and empirical structural breaks in the Iranian economy, we use state space model to investigate relationship between growth and the government size and the results indicate that coefficients are not stable during time and they behave differently regarding the source of the shock.
Pourya Esfahani
Volume 7, Issue 27 , July 2017, , Pages 157-170
Abstract
Corruption is defined as the manipulation of power by private and public authorities to achieve personal and individual goals. Many articles have been written about the factors formed corruption that a wide range of variables to be included. In this article we will examine the role of a factor in the ...
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Corruption is defined as the manipulation of power by private and public authorities to achieve personal and individual goals. Many articles have been written about the factors formed corruption that a wide range of variables to be included. In this article we will examine the role of a factor in the corruption forming that had not been studied yet. This factor is combining economic activities. The combining economic activities is defined by using of the ratio of the industrial value added in GDP and the ratio of the services sector value added in GDP. Also, the main purpose of this paper is to study the effect of combining economic activities on corruption, using the data for 60 developing countries from 1995 to 2014. In this regard, we use six variables including corruption, government size, democracy, GDP per capita, the ratio of the value added in the industrial sector to the GDP and the ratio of the value added in the service sector to the GDP. Our hypothesis is that combining economic activities is effective on corruption. In this paper, 2 GMM models are estimated. The results indicate that variables of democracy, GDP per capita and the ratio of the industrial sector to GDP has a positive relationship with corruption index. That is, an increase in these variables reduces the level of corruption. Also, the variables of government size and the ratio of service sector to GDP have a negative relationship with corruption index which means an increase in these two variables raises the level of corruption.
International Commerce
Omolbanin Jalali; Habib Ansari Samani; Madjid Hatefi Madjumerd
Volume 8, Issue 29 , December 2017, , Pages 157-174
Abstract
The aim of this study at first is to study the effective factors of FDI and then the estimation of these effects during 1983-2014. In this regard the causality relationship between FDI and political risk, GDP, trade openness index, inflation and exchange rate, has been investigated through Hsiao and ...
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The aim of this study at first is to study the effective factors of FDI and then the estimation of these effects during 1983-2014. In this regard the causality relationship between FDI and political risk, GDP, trade openness index, inflation and exchange rate, has been investigated through Hsiao and Toda-Yamamoto tests. Then using a smooth transition regression model, the effect of determinants of foreign direct investment will estimated. In addition, results show that political risk, GDP and exchange rate are statistical cause of FDI, but trade openness index and inflation have no significant effect on foreign direct investment. In addition, the nonlinearity of model was also verified. The model showed that the FDI function can be investigated in the form of a structure with a two regime with threshold value of $ 2,000 million. Political risk in both regimes has a negative effect on foreign direct investment, but with the arrival to high regime, the sensitivity will be reduced. This relationship between the GDP and FDI is opposite.
s
ali younessi; Hadi Ghafari; Mohammad Hossein Porkazemi; Farhad Khodadad Kashi
Volume 6, Issue 22 , January 2016, , Pages 164-145
Abstract
Increase in government spending can lead to increase in production, supply of public goods and services as well as utility. However, it should be noted that increasing the role of government in the economy will cause crowding out of the private sector and this will reduce the utility.
The present study ...
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Increase in government spending can lead to increase in production, supply of public goods and services as well as utility. However, it should be noted that increasing the role of government in the economy will cause crowding out of the private sector and this will reduce the utility.
The present study is looking for Iran's optimal growth rate of government's spending using time series data in the years 1978-2014. via a dynamic optimal control theory approach and the maximum principle.
The results show that, the optimal growth rate of government’s expenditure is 7% and the main factors affecting this rate is the ratio of private and public sector investment. Therefore, the current growth rate of government’s spending is not optimal and the government needs to control the growth rate of spending especially current expenditure.
f
MohammadAli Maghsoudpour
Volume 7, Issue 28 , September 2017, , Pages 165-180
Abstract
This article aims to examine the factors influencing the geographic concentration of food and drink industries using dynamic panel data for 28 provinces in the period from 2001 to 2012. Herfindahl-Hirschman concentration index is used to measure the concentration of firms. The results show positive ...
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This article aims to examine the factors influencing the geographic concentration of food and drink industries using dynamic panel data for 28 provinces in the period from 2001 to 2012. Herfindahl-Hirschman concentration index is used to measure the concentration of firms. The results show positive and significant effect of primacy (with a coefficient 1/07) on the geographic concentration of food and beverage which shows that these industries tend to settle near the first cities (largest city). However, there is an inverse relationship between economic distance variable (with a coefficient -0/067) and geographic concentration of food & beverage industries that shows economic distance is an obstacle for firms concentration. The province share of the capital stock of the country (with a coefficient 0.146) had a significant positive effect on firms concentration. According to the results, using the policies to reduce economic distance between provinces is recommended.
Energy
rozbeh baloon nejad
Volume 8, Issue 30 , April 2018, , Pages 167-187
Abstract
Optimum pricing of energy carriers is one of the effective tools for improving the efficiency of energy-scarce resources. Considering the importance of increasing the price of energy carriers and their impact on the economy, more comprehensive studies in this area seem necessary. Considering the importance ...
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Optimum pricing of energy carriers is one of the effective tools for improving the efficiency of energy-scarce resources. Considering the importance of increasing the price of energy carriers and their impact on the economy, more comprehensive studies in this area seem necessary. Considering the importance of increasing the price of energy carriers and its impact on the economy more comprehensive studies in this area seem necessary. In this research the increase in the price of energy carriers and its effects on household consumption expenditure are based on two methods of pricing the output of government price control and the method of partitioning the economic sectors into energy and non-energy using the net output table to the base prices of Central Bank of 2005. The findings of this study assuming that the dimensions of the household are not considered, suggests that the modification of the price of energy carriers reduces the consumption of households in terms of quantity and rank. By modifying the price of gasoline based on the implementation of the second phase of the law,the objective of subsidies in the energy and non-energy sector is increasing and in the state control and non-control method ignoring the slight changes will have a neutral effect on the share of household consumption expenditure. The correction of natural gas prices in the energy and non-energy method has a decreasing effect and in the control and non-control method of the government here will be a decreasing effect on the share of consumption expenditures. If we do not consider these very slight changes it could be said that the rise in natural gas prices has a detrimental effect on household expenditures. Finally, he change in electricity prices in a non-energy and energy way will decrease the effect and in the control and non-control method of government will have a decreasing effect on the share of consumption of households. Therefore comparing the two models shows that the gradual correction of the price of energy carriers has less distributive effects and reduces the share of household consumption expenditures but reduces the level of vulnerability of households to the simultaneous rectification of prices.
