Economic Growth
farhad ghalambaz; Ali Souri; Ghahraman Abdoli; Mohsen Ebrahimi
Abstract
Investigation of factors that affect economic growth has been always attractive. Foreign direct investment is one of the variables that have potential effects on growth. This study carried out to investigate the impact of foreign direct investment on economic growth. We consider the role of natural resources ...
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Investigation of factors that affect economic growth has been always attractive. Foreign direct investment is one of the variables that have potential effects on growth. This study carried out to investigate the impact of foreign direct investment on economic growth. We consider the role of natural resources using panel threshold regression model for 1996 to 2015 period and also emphasis on relationship between foreign direct investment and economic growth in Iran by Markov Switching Approach for 1976-2015. Panel threshold regression model formed based on Hansen’s (1999) suggested model then that estimated by Wang’s (2015) proposed method for fixed effect models. Results of threshold regression model showed that natural resources, domestic capital formation, population growth rate and governance indicator has statistically significant effect on economic growth. Threshold level for natural resources is 28.58 percentages. Foreign direct investment variable has different effect on economic growth in regimes. In first regime foreign direct investment increase economic growth but in second regime, that natural resources is more than threshold level, it decrease growth rate. Results of tow regimes Auto-Regressive Markov Switching model for Iran showed that foreign direct investment in recession regime is insignificant but this variable in boom regime has statistically significant effect and this relationship is negative.
Pardis Seyedmashhadi; Farhad Ghalambaz; Aliasghar Esfandiary
Volume 1, Issue 2 , January 2012, , Pages 133-113
Abstract
Oil industry is one of the biggest and most influential industries all over the world, especially in Iran. Besides being the main source of energy in today’s world, oil plays an important role in determining a country’s national power and international credibility. The oil sector has provided ...
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Oil industry is one of the biggest and most influential industries all over the world, especially in Iran. Besides being the main source of energy in today’s world, oil plays an important role in determining a country’s national power and international credibility. The oil sector has provided the majority of income for many years in Iran and in fact, this sector plays the main role in the country’s economy. Also, with regard to the fact that developing countries have limited resources and unlimited needs and cannot develop all the economical sectors at the same time, they should give priority to key sectors. This study attempted to identify the key sectors and scrutinize the oil industry as an important and a key sector in Iran’s economy, through Input-Output table of 1380 (Iran's last Input-Output table) which was aggregated into 34 sectors. The sensitivity of dispersion index and the variance index of the oil industry were 1.027 and 0.17 respectively which indicate that the relationship between this industry and the other sectors is well above the average of whole sectors and this relation is distributed evenly among the other sectors. If the oil industry is removed from the output sum, 119219783 Rials (Leontief model) and 137162804 Rials (ghosh model) would be lost in production. Also, 130618 (Leontief model) and 344108 (ghosh model) job opportunities would be lost. Concerning total output elasticity, the oil industry ranks 4(among 34 sectors) and this shows that this industry is very important and has an increasingly role in total output. But Concerning total employment elasticity, it ranks 23. In addition, the oil industry has the highest costs for job opportunities up to 880721697 Rials.
