Economic Growth
Teymour Rahmani; sima Motamedi
Volume 8, Issue 30 , April 2018, , Pages 117-132
Abstract
The relationship between foreign direct investment and economic growth is an issue that has always been of importance for economists. It is believed that foreign direct investment (FDI) is necessary to promote economic growth and capital formation in every country, particularly in the developing countries. ...
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The relationship between foreign direct investment and economic growth is an issue that has always been of importance for economists. It is believed that foreign direct investment (FDI) is necessary to promote economic growth and capital formation in every country, particularly in the developing countries. Since it has been discussed that FDI promotes economic growth not only by increasing the volume of financial funds and relaxing the constraint on investment financed by domestic savings but also by technology and management skills transfer from advanced economies to developing economies in the context of endogenous growth models, it is necessary to examine the effect of FDI on economic growth via the above mentioned channels. In this study, we examine the effects of FDI on capital formation, labor productivity and economic growth. We try to test the hypothesis that FDI helps economic growth in developing countries not only via capital formation but also via the increase in productivity. To test this hypothesis, we use a panel data approach in a simultaneous equations system including three equations and three groups consisting of 111 developing countries over the time period 1995-2013. Our method of estimation is 2SLS. Our results show that in the sample we have examined, productivity has a higher effect on economic growth than capital formation. Therefore, the hypothesis that “FDI, by increasing productivity, has a positive effect on economic growth” is not rejected.
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Teymor Rahmani; Elnaz Bagherpur Oskoei
Volume 7, Issue 28 , September 2017, , Pages 71-82
Abstract
The effect of saving on investment and economic growth is an important issue in both economic theory and policy. Also, having high and stable economic growth is of importance for all economies. On the other hand, inflation and its adverse effects (especially on economic growth) is one of the main economic ...
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The effect of saving on investment and economic growth is an important issue in both economic theory and policy. Also, having high and stable economic growth is of importance for all economies. On the other hand, inflation and its adverse effects (especially on economic growth) is one of the main economic problems in many developing countries. This study examines the relationship between the rate of saving and economic growth in developing countries with low and high inflation rates. In other words, since there have been high inflation rates in some developing countries including Iran, we examine the developments in the saving rates and economic growth and the effect of inflation on their relationship. The hypothesis we test is that higher inflation cause the effect of saving on economic growth to be lower. For this purpose, a sample of a panel data for 67 developing countries over the time period 1995-2014 is used. Our empirical results imply that higher inflation has a negative significant effect on the relationship between the rate of saving and economic growth. In effect, our main finding is that the effect of the rate of saving on the economic growth is higher for developing countries with lower inflation rates.
Teymur Rahmani; Morteza Mazaheri Marbori
Volume 5, Issue 17 , December 2014, , Pages 74-61
Abstract
Migration of highly talented people (brain drain) has increased sharply in recent decades. In the past, it was supposed that brain drain just had negative effects on the origin countries. But, it is confirmed now that migration might have positive effects on those countries, too.We examine the effects ...
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Migration of highly talented people (brain drain) has increased sharply in recent decades. In the past, it was supposed that brain drain just had negative effects on the origin countries. But, it is confirmed now that migration might have positive effects on those countries, too.We examine the effects of the brain drain on the formation of human capital and economic growth of the origin countries (developing countries) during 1975 to 2000 by using panel data method. Our results show that the prospect of migration has a positive and significant effect on the formation of human capital via the incentive mechanism. On the other hand, the direct effect of migration of highly educated people on human capital accumulation of the country of origin is negative. Our findings imply that those opposite effects cancel out each other. Therefore, the net effect of migration on human capital accumulation is zero. Also, we examine the effect of brain drain on economic growth in the country of origin. Our findings indicate that migration of skilled or highly educated people has a negative and significant effect on the economic growth of those countries. So, our results do not imply a brain gain for sending countries.
