Economic Growth
Yousef Mohammadzadeh; Samad Hekmati Farid; Elmira Sharifi
Volume 7, Issue 26 , February 2017, , Pages 97-112
Abstract
Although it is generally agreed that there is a role for the government to redistribute income in favor of the poor and provide public goods and services, there is considerable disagreement over how far the government should go in these areas.On this issue, a variety of conflicting theoretical explanations ...
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Although it is generally agreed that there is a role for the government to redistribute income in favor of the poor and provide public goods and services, there is considerable disagreement over how far the government should go in these areas.On this issue, a variety of conflicting theoretical explanations has been advanced that can only be resolved through empiricalinvestigations. According to importance of this issue the important question arises that, what is the effect of government size on good governance and economic performance? This study examines the relationship between government size, good governance and economic performance by estimating dynamic models using panel data from 50 selected countries for the period 1996-2013.The results show that the government size, and inflation have a negative and statistically significant effect on good governance indicator. Also employment index has a positive and significant impact on good governance indicator.The growth model also indicates that the government size has a negative and good governance indicator has a positive effect on economic growth. The interactions effects of government size and good governance indicator show that the size of government through governance indicator has a negative impact on economic growth. Also human development index, foreign direct investment, export and ICT's share of the imported goods have positive and significant effect on economic growth. Shrinking the size of the government and reducing its involvement in the economy, are two key policy recommendations of this study.
Monetary policy
Seyed Ziyaodin Kiya Hoseini; Mona Hashemi; Amin Hatami; Rafik Nazariyan
Volume 7, Issue 26 , February 2017, , Pages 113-124
Abstract
The most important objectives of monetary policy are to provide price stability, economic growth and favorable employment levels. Since achieving these goals is not directly accessible for policy makers, so introducing and studying the appropriate tools and intermediate targets seem necessary. For this ...
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The most important objectives of monetary policy are to provide price stability, economic growth and favorable employment levels. Since achieving these goals is not directly accessible for policy makers, so introducing and studying the appropriate tools and intermediate targets seem necessary. For this reason, this paper tries to answer this question: Whether can we introduce an appropriate rule/procedure as monetary policy [or not]. Therefore, this paper applied the well-known procedure of McCallum [a rule based on the optimum monetary rate] as well studied its fitness with the economic system of Iran over 1984-2013 by the use of GMM method. The results show that the defined optimum path by McCallum procedure [for the monetary growth rate] can be accounted as the appropriate strategy for the monetary policy in Iran and the economy of Iran can use it as a proper benchmark in its policy decisions.
Energy
Mohammad Hossein Ehsanfar
Volume 7, Issue 25 , November 2016, , Pages 85-96
Abstract
Energy is a basic need to continuity in economic development, supplying and providing welfare and comfort in human life. Due to the limitation and scarcity of resources and also considering the extended role and importance of energy in countries’ growth and economic development, determining the ...
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Energy is a basic need to continuity in economic development, supplying and providing welfare and comfort in human life. Due to the limitation and scarcity of resources and also considering the extended role and importance of energy in countries’ growth and economic development, determining the effective elements on energy demand is of a special importance. There have been many studies on energy demand in Iran. But this study has taken a different approach. This study deals with both the effect of energy market integration and the effect of economic growth on energy consumption in Iran’s economy during 1975 to 2014, using generalized method of moments. In this study, empirical results showed that integration of energy market and economic growth has significant positive effects on energy consumption. Also the price elasticity of energy demand in all models indicate the low elasticity in Iran’s economy during the mentioned years. Income elasticity has been estimated larger than one in final models.
Dynamic Panel Data
Mohammad Reza Lotfalipour; Mohammad Hossein Mahdavi Adeli
Volume 6, Issue 24 , September 2016, , Pages 17-38
Abstract
Due to limitation of energy resources and its importance in the supply chain as the final products for consumers and inputs for manufacturers on the one hand, and On the other hand, due to the large fluctuations in prices and increased greenhouse gas emissions conservation policies and factors affecting ...
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Due to limitation of energy resources and its importance in the supply chain as the final products for consumers and inputs for manufacturers on the one hand, and On the other hand, due to the large fluctuations in prices and increased greenhouse gas emissions conservation policies and factors affecting supply and demand in recent decades have been considered by the scientific and policy communities. In this study, the relationship between energy consumption, export and economic growth in the industrial sector of the Iranian economy has been tested.For this purpose, the panel data of energy consumption, export and value added of the industrial sector in the ISIC 2-digit level detail over the years 2002 to 2012 were used. To study causality and dynamics between variables in the industrial sector the Toda-Yamamoto causality and vector error correction model were used. The results show bidirectional short-run, long-run and strong causality between variables, Except for one case that from exports to energy consumption and economic growth in the short run, there is no causality.
Economic Growth
Morteza Salehi Sarbijan
Volume 6, Issue 24 , September 2016, , Pages 55-68
Abstract
Economic growth forecast is a major problem in economy that has a significant impact in government policy and economic planning. It also helps policy makers for future decisions. Multivariate econometric forecasting models associated with many limitations, so an alternative approach is the use of univariate ...
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Economic growth forecast is a major problem in economy that has a significant impact in government policy and economic planning. It also helps policy makers for future decisions. Multivariate econometric forecasting models associated with many limitations, so an alternative approach is the use of univariate models, but most of these methods need a lot of data to achieve the best result. In this study, data from 1959 to 2005 were used to estimate the models. Then the performances of auto regressive integrated moving average (ARIMA) model in the economic growth forecast of Iran was evaluated and compared with Markov switching method and fuzzy neural network (ANFIS) for the period from 2006 to 2013 using the Criteria RMSE, MAE and MAPE. Results showed that ANFIS model had the best performance. Furthermore, Markov switching method was more suitable than ARIMA model.
توسعه مالی
Sadegh Ali Movahed Manesh
Volume 6, Issue 24 , September 2016, , Pages 69-82
Abstract
Financial markets is one of the most important mechanisms to attract investment and efficient distribution of assets by transferring savings to investment.Given the importance of insurance in the country's economic activities, the effect of insurance industry on the GDP of Iran is calculated. Thus the ...
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Financial markets is one of the most important mechanisms to attract investment and efficient distribution of assets by transferring savings to investment.Given the importance of insurance in the country's economic activities, the effect of insurance industry on the GDP of Iran is calculated. Thus the insurance penetration rate and degree of trade openness on GDP in Iran during 1971-2013 were examined. The generalized model of Avram (2010) were used. Long-term equilibrium relationship between the variables of the model was confirmed by Johansen-Juselius tests. According to GMM, the results showed a positive effect of country's insurance penetration rate on the GDP of Iran.
f
MohammadAli Maghsoudpour
Volume 6, Issue 24 , September 2016, , Pages 83-106
Abstract
This paper uses the endogenous growth model and the Auto Regressive Distributed Lag Method (ARDL), has been done during 1976 to 2014. To measure the distribution of the population, provincial capitals were selected. Then using Herfindahl -Hirschman Index (HHI), their population distribution calculated ...
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This paper uses the endogenous growth model and the Auto Regressive Distributed Lag Method (ARDL), has been done during 1976 to 2014. To measure the distribution of the population, provincial capitals were selected. Then using Herfindahl -Hirschman Index (HHI), their population distribution calculated and as an index of heterogeneousdistribution of population has been added to the economic model of endogenous growth. The results show a negative impact of uneven distribution of population on economic growth of Iran. According to the results, the application of the policies of decentralization and balanced distribution of the population recommended.
International Commerce
Ebrahim Anvari; Ahmad Salahmanesh; Majid Sheikh Ansari; Mahvash Moradi
Volume 6, Issue 24 , September 2016, , Pages 119-132
Abstract
Investigating the effect of government corruption and financial liberalization on economic growth is a fundamental issue in recent economic literature. However, considering these two phenomena simultaneously have been ignored by researchers. This paper, empirically and theoretically, studies how negative ...
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Investigating the effect of government corruption and financial liberalization on economic growth is a fundamental issue in recent economic literature. However, considering these two phenomena simultaneously have been ignored by researchers. This paper, empirically and theoretically, studies how negative effect of corruption can be affected by financial liberalization. The results show that, by liberalizing financial account, high corrupt countries levy more taxes and therefore the negative effect of corruption on economic growth intensified. In empirical model, we include OPEC countries for the duration of 1990-2013. Estimation results by GMM method show that the negative signs of the interaction between financial liberalization and corruption imply that the partial impact of financial openness on economic growth decreases as the degree of corruption increases.
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.
Energy
Mehdi Sadeghi Shahdani
Volume 6, Issue 24 , September 2016, , Pages 145-156
Abstract
Since efficiency improvements may be viewed as a form of technical change that both reduces the effective cost of energy services and stimulates economic activity, energy demand may, under some circumstances ,rise even as energy productivity improves. This paper examines this hypothesis using a simple ...
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Since efficiency improvements may be viewed as a form of technical change that both reduces the effective cost of energy services and stimulates economic activity, energy demand may, under some circumstances ,rise even as energy productivity improves. This paper examines this hypothesis using a simple model that distinguishes the roles of energy and energy services in production activities. This paper considers a model of economicgrowth where improvements in energy efficiencyconstitute a form of technicalchange that stimulates increased levels of capitalinvestment and economic activity. The model examined here include energy services, notenergy per se, in the aggregate productionfunction. A structure is specified in which energyservices are produced using both energyand non-energy inputs like capital stock. In this model, improvedenergy efficiency entails increased energyuse only if (i) energy accounts for a largefraction of the total cost of energy services and(ii) the production of energy services constitutes a substantial fraction of economic activity. The theoretical model examined in this paper employs a number of simplifying assumptions that might be generalized in future research. The model’s focus on the Cobb-Douglas production function, where the elasticity of substitution between energy services and other inputs is set equal to one, constitutes something of a special case. The Cobb-Douglas functional form is useful because it permits the analysis of closed-form solutions to the model. Relaxing this assumption is unlikely to affect the insights that emerge by developing the distinction between energy use and energy services. According to the model justified for Iran , improvements in energy will cause a net increase in energy use and economic activity. Additionally , changes in the cost of energy services have identical impacts on capital accumulation and long run economic growth. Changes in unit cost will have major impacts on aggregate economic activity if energy services constitute a large share of gross output.
Economic Growth
Abolfazl Shahabadi; Hossein Sohrabi vafa; Yunes Salmani
Volume 6, Issue 23 , May 2016, , Pages 88-75
Abstract
The recent economic growth theories believe that the inovation developed in response to economic incentives is the main engine of technological progress and economic growth traditionally. Thus this study investigates the role of capital and R&D activities in Iran, Turkey and Malaysia with distributed ...
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The recent economic growth theories believe that the inovation developed in response to economic incentives is the main engine of technological progress and economic growth traditionally. Thus this study investigates the role of capital and R&D activities in Iran, Turkey and Malaysia with distributed lag regression during 1981-2012. The result indicates that in the long term, in Malaysia, impact of R&D activities, is sustainable and more stable on economic growth in comparison with Iran and Turkey. Also the R&D investment compared with physical capital has a greater impacton economic growth inTurkey and Iran.
Economic Growth
Mohsen Mehrara; Sadeq Rezaei Bargoshadi
Volume 6, Issue 23 , May 2016, , Pages 114-89
Abstract
This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth ...
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This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth are respectively ratio of imported capital and intermediate goods toGDPand labor force which lead to an increase in growth. Endogenous growth factors which are the factors contributing to formation of human capital, not possess a large role in growth process. Investments, especially government investment affects contrary to were expected. In fact, low quality, and productivity of investments and poor allocation reduced importance of investment’s quantity. The nature of Iran’s economy has not endogenous and dynamic features and predominantly, growth has been made by injecting of exogenous sources. Emphasis on formal and informal educational orientation in the quality of human capital instead of increasing in quantity of education is recommended.
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.
Economic Growth
Ahmad Jafari Samimi; elham alizadeh malafeh
Volume 6, Issue 22 , January 2016, , Pages 70-57
Abstract
Expansion of energy consumption and trend of rising emissions of pollutants resulting from the combustion of energy carriers in the world has caused environmental crises which be recognized as one of the most important challenges which governments in the twenty-first century are facing. That is why governments ...
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Expansion of energy consumption and trend of rising emissions of pollutants resulting from the combustion of energy carriers in the world has caused environmental crises which be recognized as one of the most important challenges which governments in the twenty-first century are facing. That is why governments try to take various policies and programs in order to overcome on environmental problems such as air pollution. One of the most common types of policies that cause minimum inefficiency in the economy is obtaining the green taxes which is applied on the basis of cost. Accordingly, in this study, the effects of increase of green taxes on economic growth, based on the design of Computable General Equilibrium model for Iran and implementation of Social Accounting Matrix in 2001 in the form of eight scenarios were examined.
The increasing rates of taxes from one to forty percent have been done in eight scenarios. The obtained results show that the increasing rate of green taxes as an indirect one increases the economic growth in all scenarios. also the positive effect of lower pollution leads in positive economic growth in all scenarios, too.
Economic Growth
Behnam Ebrahimi; Mohammad Vaez Barzani; Rahim Dallali Esfahani; Majid Fakhar
Volume 6, Issue 22 , January 2016, , Pages 84-71
Abstract
It’s expected, theoretically, that financial development, facilitates allocation of resources to most-productive uses and thereby fosters economic growth. Nonetheless, some opponent theories and evidences, implies that financial development may has different and to some extent antonym effects on ...
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It’s expected, theoretically, that financial development, facilitates allocation of resources to most-productive uses and thereby fosters economic growth. Nonetheless, some opponent theories and evidences, implies that financial development may has different and to some extent antonym effects on economic growth in different situations. Specifically, qualitative financial development (financial innovations), in addition to augmenting economic efficiency, could result in regulatory arbitrage (financial institutions efforts to sidestep regulatory restrictions in order to gain more profits) which, in turn, distorts fundamental economic variables from optimum levels and thereby affects economic growth negatively. In this study, we use a semi-parametric model, based on a monetary/financial economic growth model, and data from Iran economy for the period of 1990-2012 to empirically evaluate the effect of unexpected occurrence of financial innovation on capital formation. According to results of the study, qualitative financial development would scale down capital formation and economic growth. Additionally, results reveal that regulated reserve requirements in Iran might be at their optimal level.
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
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.
Quality of Environment
Rouhollah Nazari; Mohamad Hosein Mahdavi Adeli; Yadollah Dadgar
Volume 6, Issue 21 , November 2015, , Pages 60-47
Abstract
In the world movement toward sustainable development, it is necessary to consider environmental damages caused by energy sector. Determining the influence of different factors on the environment pollution theoretically, practically and politically is necessary for economic growth, which is in accordance ...
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In the world movement toward sustainable development, it is necessary to consider environmental damages caused by energy sector. Determining the influence of different factors on the environment pollution theoretically, practically and politically is necessary for economic growth, which is in accordance with sustainable development objectives. Hence, in this article, we are going to study the factors influenced Iranian environment pollution (Socio-economic view and Climatic Parameters view) using the data of the years 1974-2013. In order to study the relation between the variables, we have used GMM methodology. According to the study results, the impact of economic growth, density, energy consumption and the number of automobiles on environment pollution is positive and significant. Nevertheless, the degree of the country openness, temperature and rainfall have a negative and significant relation with environment pollution.
Mena Countries Group
Mahboobeh Shakeri; Ahmad Jafari Samimi; Zahra Karimi Moughari
Volume 6, Issue 21 , November 2015, , Pages 106-93
Abstract
The subject of this paper is measuring institutional quality and evaluatingits relationship with per capita economic growth in 20 MENA countries. For estimating growth models, panel data method was used during (2002-2010). For measuring institutional quality at first six indices of good governance have ...
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The subject of this paper is measuring institutional quality and evaluatingits relationship with per capita economic growth in 20 MENA countries. For estimating growth models, panel data method was used during (2002-2010). For measuring institutional quality at first six indices of good governance have been used in six growth models. The results have shown that only regulatory quality have positive and significant relation with economic growth. Whereas the coefficients of other institutional variables including control of corruption and political stability are negative and the others including rule of law, governance effectiveness and voice and accountability are positive but insignificant. Then another model was estimated by using good governance index which was derived from combining six upper indices by using principle component analysis (PCA). The results showed positive relationship but significant at the 0.10 percent level. In the final analysis a new institutional index is derived by combining three institutional variables which had positive coefficient into the one composite index by using PCA. New index has bigger positive coefficient and significant at the 0.01 percent level rather than its sub measures (regulatory quality, voice and accountability, rule of law) and alsothan good governance index.
Ali Hussein Samadi; Zahra Dehghan Shabani; Atefeh Moradi Kouchi
Volume 5, Issue 19 , June 2015, , Pages 72-57
Abstract
The aim of this paper is to analyze the effects of income inequality on economic growth in 28 provinces of Iran during 2000-2011 by using Geographically Weighted Regressions (GWR) and Dynamic Panel Data (DPD) models. This paper has tried to study the spatial heterogeneity among 28 provinces in Iran by ...
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The aim of this paper is to analyze the effects of income inequality on economic growth in 28 provinces of Iran during 2000-2011 by using Geographically Weighted Regressions (GWR) and Dynamic Panel Data (DPD) models. This paper has tried to study the spatial heterogeneity among 28 provinces in Iran by using the Mont-Carlo and Inter-quartile tests. The results show that spatial heterogeneity exists for income inequality, human capital and logarithm of real per capita income. This paper is focused on geographic weighted model that contain spatial heterogeneity. The empirical results of GWR and DPD models have shown that income inequality has a negative effect on economic growth in Iran.
Farhad Khodadad Kashi; Mohamad Nabi Shahiki Tash; Samaneh Nooraniazad
Volume 5, Issue 19 , June 2015, , Pages 114-95
Abstract
The main purpose of this study is to examine the relationship between market structure and economic growth in iran. Using Lopez - Azzam (2002) Approach, the extent of endogenous markup in different markets was estimated. Then the relationship between markup and economic growth was investigated by baranova ...
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The main purpose of this study is to examine the relationship between market structure and economic growth in iran. Using Lopez - Azzam (2002) Approach, the extent of endogenous markup in different markets was estimated. Then the relationship between markup and economic growth was investigated by baranova (2013) model. In this paper we also examined structural and behavioral aspects of 131, 4-digit industry over the 1995-2011 periods. These aspects include markt power as structural variable and conjectural variation as behavioral variable. In addition we sought to identify the impacts of markup on economic growth. The results of this study indicate that based on conjectural variation, firms cooperate in 91 percent of industries. On the other hand, Lerner index and markup in 94.2 percent of industries were higher than 0.1 percent and 1.001 respectively. Our findingsalso indicate that there is a negative association between endogenous markup and economic growth. According to the results of this study, low level of competition in industries led to limited growth in Iran.
Mahdi Shahraki; Simin Ghaderi
Volume 5, Issue 19 , June 2015, , Pages 136-115
Abstract
Infrastructures are one of the most important tools for transferring technology from developed countries to developing ones. These infrastructures will also increase the economic activities; decrease the production and transportation costs, and finally increase the efficiency. Thus, they can affect the ...
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Infrastructures are one of the most important tools for transferring technology from developed countries to developing ones. These infrastructures will also increase the economic activities; decrease the production and transportation costs, and finally increase the efficiency. Thus, they can affect the economic growth. This study investigates the direct and indirect effects of education and health, and economic infrastructures on the economic growth of Iran from 1980 to 2011. To that end, an equation system was designed which uses 2SLS. The findings showed that one percent increase in the education and health infrastructures will increase GDP by 0.06, and increase the foreign direct investment by 0.03. The indirect effect of improving education and health infrastructures on economic growth via foreign investment is 0.06 while export can bring about a 0.02 increase in economic growth.
Ali Mehdiloo; Hosein Sadeghi; Abas Assari Arani
Volume 5, Issue 18 , March 2015, , Pages 30-11
Abstract
The relation between rent-seeking opportunities and economic growth has been considered by many economists in past decades. They believe that rent-seeking opportunities are reducing economic growth with wasting and non-allocation of resource to productive activities and reducing motivation of entrepreneurship. ...
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The relation between rent-seeking opportunities and economic growth has been considered by many economists in past decades. They believe that rent-seeking opportunities are reducing economic growth with wasting and non-allocation of resource to productive activities and reducing motivation of entrepreneurship. The purpose of this study is investigating the nonlinear effects of rent-seeking opportunities on economic growth in Iran. For this purpose, the trend of rent-seeking opportunities have been simulated by three input variables that include gap of official exchange rate, the ratio of building added value to GDP and the size of government using fuzzy logic in first step. Then, in the second step, nonlinearity relation is evaluated between rent-seeking (fuzzy output) and economic growth using Markov-Switching model. Experimental results showed that, rent-seeking opportunities have negative significant impact on economic growth in three regimes of the model. So that in the first regime that indicates economic boom (since the average of oil income is high) opportunities of rent-seeking by a cofficient of -36/44 has most negative impact and in the third regime that indicates recession (since the average of oil income is low) by a cofficient of -1/61 has lowest negative impact on economic growth.
Abolghasem Golkhandan; Mojtaba Khansari; Davood Golkhandan
Volume 5, Issue 18 , March 2015, , Pages 50-31
Abstract
This paper examines the effect of military expenditure on economic growth in MENA region countries. High share of military expenditure in GDP of the MENA region countries on the one hand and strategic position of Middle East countries in this region, on the other hand, need to examine the effect of military ...
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This paper examines the effect of military expenditure on economic growth in MENA region countries. High share of military expenditure in GDP of the MENA region countries on the one hand and strategic position of Middle East countries in this region, on the other hand, need to examine the effect of military spending on economic growth in the MENA region countries. In this regard, an augmented Solow model (proposed by Knight et al. (1996) about military expenses and economic growth) during the period 1995-2012 is used. Long-run equilibrium relationship between the variables of this model verified by Pedroni (2004) and Kao (1999) panel cointegration tests. The results of this research by using generalized method of moments (GMM( of dynamic panel data, show the negative impact of military spending on economic growth in the MENA region countries. So can be said that although military spending is required in order to increase security of many countries in the region, but these expenditure will reduce economic growth.
Samad Hekmati Farid; Ahmad Ezzati Shoorgoli; Reza Ezzati; Ali Dehghani
Volume 5, Issue 18 , March 2015, , Pages 112-95
Abstract
This paper examines the relationship between control of corruption and globalization (with various aspects) on economic growth in countries with high per capita income, middle per capita income, and low per capita income over the period (2002-2010) using panel data from113 different countries. According ...
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This paper examines the relationship between control of corruption and globalization (with various aspects) on economic growth in countries with high per capita income, middle per capita income, and low per capita income over the period (2002-2010) using panel data from113 different countries. According to the results of the various models, there is an inverted U relationship between control of corruption and economic growth. Moreover, the relationship between economic globalization and economic growth in countries with low per capita income is negative and significant. Also, social globalization in these countries has a negative impact on economic growth. However, overall index of globalization and political globalization has a positive impact on economic growth in these countries. Furthermore, in countries with high per capita income and middle per capita income, the impact of the three indicators of globalization (economic, social and political) and the overall index of globalization on economic growth is positive and significant.
