Economic Growth
Esmaiel Abounoori; Mahboobeh Farahati
Volume 7, Issue 25 , November 2016, , Pages 37-50
Abstract
Is economic growth in Iran affected by post-Keynesian economists theory? Is it possible to overcome economic recession in Iran using the post-Keynesian approach? According to the post-Keynesian point of view, the economic growth is either wage-led or profit led. In other words, the functional distribution ...
Read More
Is economic growth in Iran affected by post-Keynesian economists theory? Is it possible to overcome economic recession in Iran using the post-Keynesian approach? According to the post-Keynesian point of view, the economic growth is either wage-led or profit led. In other words, the functional distribution of income determines the economic growth variation path. In this paper considering profit share, capacity utilization, capital accumulation, and net export/GDP ratio during 1967-2013, economic growth path in Iran is determined using Structural Vector Auto Regression (SVAR) concerning the Impulse Response functions. The results show that increase in profit share increases capital accumulation, net export share of GDP and total demand or economic growth. Thus total demand regime or economic growth is profit-led. The result of this research approves the theoretical results of Bhaduri and Marglin (1990); concerning the income distribution effect on international trade in an open economy, the possibility of profit-led regime increases and may help to overcome the recession.
Esmaiel Abounoori; Abdolhamed Nikpour
Volume 5, Issue 17 , December 2014, , Pages 90-75
Abstract
The main aim of this study is estimation of hidden economy and its relationship whit tax burden in Iran during the period 1966-2011. In the first stage: size of the hidden economy is estimated using Lisrel software concerning multiple indicators - multiple causes approach. The tax burden, natural sources ...
Read More
The main aim of this study is estimation of hidden economy and its relationship whit tax burden in Iran during the period 1966-2011. In the first stage: size of the hidden economy is estimated using Lisrel software concerning multiple indicators - multiple causes approach. The tax burden, natural sources of income, unemployment rate, trade restriction, per capita income, inflation and size of the government are regarded as the cause variables while the real GDP growth rate and demand for money in circulation are used as the indicator variables. So, the hidden economy is calculated using extra information and calibration; the time series of absolute and relative size of the hidden economy is obtained on in term of the based price in 1997. In the second stage we have estimated the effect of the tax burden on the size of the hidden economy. The first stage results show that tax burden, size of the government and trade restrictions, are the main reason generating the hidden economy in Iran while the per capita income does not have any significant effect. The results from the second stage indicate that: increase in tax burden on imports increases the size of the hidden economy and the growth of the total tax burden (definition1) decreases the size of the hidden economy. In general, the final effect of the tax burden on the size of the hidden economy is positive and significant.
