Mahdi Fadaee; Morteza Derakhshan
Volume 5, Issue 18 , March 2015, , Pages 132-113
Abstract
Following the economic sanctions that have been imposed on Iran in the years after the Islamic Revolution, always economists were facing this question that; what is the effect of economic sanctions on different economic variables and how much is it? This study aims to analyze the effect of economic sanctions ...
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Following the economic sanctions that have been imposed on Iran in the years after the Islamic Revolution, always economists were facing this question that; what is the effect of economic sanctions on different economic variables and how much is it? This study aims to analyze the effect of economic sanctions as dummy variable on economic growth in Iran, using Indexing and weighting (determining the importance) of various sanctions that historically imposed on Iran. For this purpose, using time series data and Auto Regressive Distributed Lag (ARDL) model, we analyze the effect of economic sanctions on economic growth from 1978 to 2013. Short-run estimation results show that in the short term weak sanctions had not significant effect on economic growth, but moderate and strong sanctions respectively with coefficients 0.0098 and 0.43, has had a negative effect on economic growth. Long-run estimation results show that in long term weak and strong sanctions had not significant impact on economic growth, but moderate sanctions with coefficient 0.024 has had a negative impact on economic growth. Finally error correction coefficient in model is - 0.407.
Masoud Ghorbani; Mohammadtaher Ahmadi Shadmehri; Sayyedmahdi Mostafavi
Volume 5, Issue 17 , December 2014, , Pages 60-49
Abstract
infrastructure development is one of the important requirements of economic growth and increasing welfare. Direct investment on infrastructure causes providing the manufacturing facilities, stimulate economic activities and improve competitiveness by decreasing the costs of trade and transfer and finally ...
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infrastructure development is one of the important requirements of economic growth and increasing welfare. Direct investment on infrastructure causes providing the manufacturing facilities, stimulate economic activities and improve competitiveness by decreasing the costs of trade and transfer and finally facilitate the economic growth of Iran. In this study ,we had attempted to examine the effect of physical infrastructure as an important infrastructure on economic growth. For this purpose ;we used the production function model and we have used three types of variables including physical, social and ICT infrastructures, to identify the effect of infrastructure on economic growth. we've introduced the physical infrastructure by using 4 variables which via factor analysis method becomes one indicator. Also, we have used the health expenditure and ICT capital stock as social and ICT infrastructures respectively. for estimating the model, we were used the auto regressive distributed lag(ARDL) method in the period 1976 to 2012. Results showed that in the period under review, the impact of physical, social and ICT infrastructures on economic growth has been positive and significant.
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.
Mohammad Nabi Shahiki Tash; Saber Molaee; Khadijeh Dinarzehi
Volume 4, Issue 16 , November 2014, , Pages 52-41
Abstract
The main objective of this paper is to examine the impact of economic growth on coefficient of cardinal welfare in Iran’s economy. Hence, we employ the Bayesian approach and the estimation of forward and backward density functions in order to measure the effect of economic growth spillovers ...
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The main objective of this paper is to examine the impact of economic growth on coefficient of cardinal welfare in Iran’s economy. Hence, we employ the Bayesian approach and the estimation of forward and backward density functions in order to measure the effect of economic growth spillovers on the social welfare. The paper has applied the Gibbs sampling algorithm which is a rigorous tool for forward simulation so as the results rising from this simulation indicate that there is a positive relationship between economic growth and welfare variables in Iran. It means that the flow of economic growth has had a positive impact on the rise of welfare in the country, such that the average of Bayesian coefficient is near to 0.17 per cent for the change of welfare during the period 1985- 2011. Accordingly, it is recommended that: 1- the policy makers should follow the growth-based strategies 2- the respective officials should identify the effective variables on growth in order to increase growth rate for the economy and eventually, 3- design more efficient institutions for the poor so as they enjoy greater gaining from the growth.
Abolfazl Shahabadi; Zohre Bahari
Volume 4, Issue 16 , November 2014, , Pages 72-53
Abstract
One of the most important macro-economic objectives of the countries is to create the necessary conditions for promoting economic growth. Among them, we can point to political stability and economic freedom. Political instability leads to wasting physical and human resources and social capital, which ...
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One of the most important macro-economic objectives of the countries is to create the necessary conditions for promoting economic growth. Among them, we can point to political stability and economic freedom. Political instability leads to wasting physical and human resources and social capital, which will be considered as an economic rollback. Also, the rate of economic growth is associated with economic freedom index in every country. Economic freedom can lead to investment encouragment, promotion of skills, transfer of technology and efficient use of the investments through creation of relations of the market economy, private sector development, foreign trade development, remove unnecessary governmental regulations and provide the field for the development of productive activities. So, this study surveys the effects of political stability and economic freedom on economic growth in selected countries during the period 1996-2012. For this purpose, the effect of political stability and economic freedom indicators on economic growth has been tested by using GMM method for dynamic panel data models. The results indicate positive effects and statistically significance of political stability and economic freedom on economic growth in both groups of countries
Mojtaba Kazemi; Seyed Abdolmajid Jalaee Esfand Abadi; Hossein Akbari Fard
Volume 4, Issue 15 , August 2014, , Pages 40-25
Abstract
In this paper, in order to empirically examine and predict the effect of exchange rate uncertainty on economic growth in Iran over the period 1959 to 2010, econometrics methods and artificial neural network are applied. For this purpose, at first the exchange rate uncertainty is calculated by the generalized ...
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In this paper, in order to empirically examine and predict the effect of exchange rate uncertainty on economic growth in Iran over the period 1959 to 2010, econometrics methods and artificial neural network are applied. For this purpose, at first the exchange rate uncertainty is calculated by the generalized autoregressive conditional heteroskedasticity (GARCH) method. Then the impact of exchange rate uncertainty on economic growth in Iran has been tested. For this purpose, the proper network, in according to valuation criterions like determination coefficient and mean square of error were determined. Then research hypothesis has been investigated by attention to trained artificial neural network. The results indicate that exchange rate uncertainty has had a weak negative effect on Iran economic growth in recent years. Of course, it is expected that this effect in the future to be significantly stronger.
Hassan Heidari; Roghayyeh Alinezhad; Javad Jahangirzadeh
Volume 4, Issue 15 , August 2014, , Pages 60-41
Abstract
This study aims to investigate the potential threshold effects in the relationship between democracy and economic growth for the D-8 countries over the period 1996-2011. In this investigation we also introduce other variables including education expenditures, government consumption expenditures, agricultural ...
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This study aims to investigate the potential threshold effects in the relationship between democracy and economic growth for the D-8 countries over the period 1996-2011. In this investigation we also introduce other variables including education expenditures, government consumption expenditures, agricultural raw materials exports, inflation rate and index of openness. In order to do this investigation, the paper uses the Panel Smooth Transition Regression (PSTR) model that is appropriate method for describing cross-country heterogeneity. Our results reject the linearity hypothesis, and estimates two regimes that give a threshold at democracy of -0.971. In the first regime, democracy, education expenditure and government consumption expenditure variables have a significantly positive impact on GDP and agricultural raw materials exports, inflation rate and index of openness variables have a significantly negative impact on GDP. At the second regime, democracy, education expenditure, agricultural raw materials exports and index of openness variables have a positive impact and government consumption expenditure and inflation rate variables have a negative impact on GDP. Though, the impact of democracy and education expenditure are increased and the impact of inflation rate dramatically declined and government consumption expenditure, agricultural raw materials exports and index of openness sign have changed between two regimes. Therefore, empirical results confirm the compatibility view.
Mohammad Reza Lotfalipour; Mohammadali Falahi; Had i Esmaeilpour Moghaddam
Volume 4, Issue 15 , August 2014, , Pages 76-61
Abstract
Undesirable environmental changes such as global warming and greenhouse gases emissions rising have created much concerns worldwide during recent decades. Environmental problems emerged from economic activities have become a controversial problem due to achieve higher economic growth rate. The ...
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Undesirable environmental changes such as global warming and greenhouse gases emissions rising have created much concerns worldwide during recent decades. Environmental problems emerged from economic activities have become a controversial problem due to achieve higher economic growth rate. The aim of this research is to investigate the effects of economic growth, trade and financial development on environmental quality in Iran. To this end, the statistical data during the period of 1970-2011 has been used. Also by using the Auto Regression Model Distributed Lag (ARDL) short-term and long-term relationships between the variables of model were estimated and analyzed. The results show that financial development and economic growth increase the degradation of the environment. In addition, the rise in trade openness reduces the degradation of the environment. Error correction coefficient (ECM) shows that in each period 51 percent of imbalance will be compensated and it closes to its long run process. CUSUM and CUSUMSQ tests show that the estimated coefficients are stable over the period.
Sohrab Delangizan; Mohammad Sharif Karimi; Zeinab Khalvandi
Volume 4, Issue 15 , August 2014, , Pages 104-87
Abstract
Financial corruption affects on economy’s health via different channels which the most important channel is distortions in the allocation of resources. On the other hand, the level of knowledge-based economy also can affect on behaviour of factors of production. An important question is whether ...
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Financial corruption affects on economy’s health via different channels which the most important channel is distortions in the allocation of resources. On the other hand, the level of knowledge-based economy also can affect on behaviour of factors of production. An important question is whether the level of knowledge-based economy can affect the relationship between corruption and economic growth? This study investigates the effect of financial corruption on economic growth for 138 countries over the period 2000 - 2011 by using the consolidated corruption perception indicator, the level of knowledge based economy indicator and economic growth and a dynamic panel model which called Generalized method of moments (GMM). The results of classification of countries show that, in the groups with high knowledge-based economy indicator, control of financial corruption has positive impact on economic growth but in the groups with moderate knowledge-based economy indicator, control of corruption, has negative impact on economic growth. Also, the results show that in the first group of countries, stability of corruption control policies has a positive impact on economic growth but in the second group of countries, it has a negative effect.
Behzad Alipour; Mehdi Pedram; Soheila Mojadami
Volume 4, Issue 14 , May 2014, , Pages 74-63
Abstract
Employment is one of the triple basic factors of production i.e. land, labor, and capital; unlike other factors, labor cannot be stored, and this power will be lost if it cannot be used in production. Therefore, the necessity of the analysis of the employment is of special importance. The question of ...
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Employment is one of the triple basic factors of production i.e. land, labor, and capital; unlike other factors, labor cannot be stored, and this power will be lost if it cannot be used in production. Therefore, the necessity of the analysis of the employment is of special importance. The question of the involvement and the role of the State in the economy also has been one of the phenomena of interest to economists. The extent and the size of government and its effect on macroeconomic variables have a decisive role in the status of the economy. In this study, variables of government size, economic growth rate, the rate of inflation and the rate of private sector investment are as the explanatory variables, and the variable of employment is dependent variable in the form of a multiple variables regression. Finally the results of the model showed that size of government has a negative effect on employment, and the economic growth rate, the inflation rate and the rate of private sector investment have a positive effect on employment. The results of the estimation in period 1976 -2011 using the self-explanatory Auto Regressive Distributed Lag (ARDL) and Bound Testing Approach devised by Pesaran, Shin and Smith, showed that our dynamic pattern goes towards the long term pattern. Also the results of the error correction model indicate that it is corrected from its long-term path in each period at a rate of 56%.
Zahra Jalili
Volume 4, Issue 13 , January 2014, , Pages 42-29
Abstract
An increase in production and economic growth leads to more and better opportunities for economic prosperity and enter to new scope. Exports, as one of the sources of national income can lead to the GDP growth, and foreign investment as the largest source of external finance in developing countries with ...
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An increase in production and economic growth leads to more and better opportunities for economic prosperity and enter to new scope. Exports, as one of the sources of national income can lead to the GDP growth, and foreign investment as the largest source of external finance in developing countries with positive spillover effects, provides economic growth conditions. Considering the economic monoculture and oil-export-based for countries in the MENA region, and the potential in the region to attract foreign investment, this paper investigates the relationship between non-oil exports and foreign direct investment with economic growth in the MENA region over the period 2000-2010 using GMM panel data approach. The results suggested a significant positive effect of non-oil exports and foreign direct investment on economic growth in the countries which were the focus of the study. Therefore, it is suggested that for development of non-oil exports, the structure of domestic production should be changed in such a way to provide the opportunity to enter in global markets and consider the comparative advantage as well as competitive advantage in production structure. For development of domestic production capacity, it is necessary to set conditions to attract foreign investment to overcome obstacles in attracting this kind of investment.
Shirin Arbabian; Batol Rafat; Maryam Ashrafian Pour
Volume 4, Issue 13 , January 2014, , Pages 116-97
Abstract
Tourism as a highest earning industry in the world can play an important role in the economic growth of countries. On the other hand, economic growth can also lead to the development of tourism facilities and infrastructure and finally to tourism development. Therefore, in this study the relationship ...
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Tourism as a highest earning industry in the world can play an important role in the economic growth of countries. On the other hand, economic growth can also lead to the development of tourism facilities and infrastructure and finally to tourism development. Therefore, in this study the relationship between international tourism and economic growth in the OIC member states is discussed. In this study -to evaluate the impact of tourism on economic growth and the impact of economic growth on tourism- using panel data econometric framework, tourism and economic growth models in the period 1995-2011 for 21 OIC member countries are analysed. Results represent a significant and positive impact of international tourism, foreign direct investment, the degree of economic openness and economic freedom on economic growth and also economic growth due to increase of infrastructures and facilities leads to tourism development and increase the per capita income of any of the Islamic countries which lead to increased demand for tourism among members. Also the expansion of trade and lower prices affect tourism development.
Ahmad Jafari Samimi; Jalal Montazeri Shoorekchali; Musa Tatar
Volume 4, Issue 13 , January 2014, , Pages 128-117
Abstract
Regarding the important role of health in economic growth and development, the purpose of the present paper is to investigate the impact of life expectancy, as the most important indicator of health, on economic growth in Iran during 1965-2009. The estimated Smooth Transition Regression (STR) model supports ...
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Regarding the important role of health in economic growth and development, the purpose of the present paper is to investigate the impact of life expectancy, as the most important indicator of health, on economic growth in Iran during 1965-2009. The estimated Smooth Transition Regression (STR) model supports a nonlinear threshold behavior in the relationship between life expectancy and economic growth in the country in a two regime structures with a threshold level of 55.34 years. In other words, our findings are both consistent with Acemoglu and Johnson (2007) for the negative impact and with demographic transition theory for the reducing effect of life expectancy on economic growth in Iran. This shows the country is approaching the stage of the fertility transition, where the increase in life expectancy will bring about a decline in population.
Kiumars Shahbazi; Lesyan Saeidpour
Volume 3, Issue 12 , November 2013, , Pages 38-21
Abstract
This paper investigates the threshold effects of financial development on economic growth in D-8 countries for the period of 1980 to 2011, using Panel Smooth Transition Regression (PSTR) model as one of the most prominent regime-switching models. For this end, domestic credit to private sector as percent ...
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This paper investigates the threshold effects of financial development on economic growth in D-8 countries for the period of 1980 to 2011, using Panel Smooth Transition Regression (PSTR) model as one of the most prominent regime-switching models. For this end, domestic credit to private sector as percent of GDP is used as a financial development indicator and transition variable. The linearity test results indicate strongly nonlinear relationship among variables under consideration. Moreover, considering one transition function and one threshold parameter, as a two regime model, is sufficient to specification of nonlinear relationship among variables. The results indicate that threshold value is 26.55 percent and the estimated slope parameter is 0.24. In the first regime, financial development has a negative impact on economic growth. Beyond threshold value, in the second regime, the impact of financial development is positive and very low. Therefore, financial development has not played an important role in the process of economic growth in D-8 countries, and its influence is even very low with advancement of financial development.
Morteza Ezzati; Leila i Shahriyar; Mohaddese Najafi; Ali Shafiei
Volume 3, Issue 12 , November 2013, , Pages 56-39
Abstract
In this paper we design an index for measuring regional discrimination and estimating regional economic discriminations effect on states’ economic growth in Iran. We use panel data econometric method for the years 2000-2010. The conclusions indicate that positive discriminations for states that ...
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In this paper we design an index for measuring regional discrimination and estimating regional economic discriminations effect on states’ economic growth in Iran. We use panel data econometric method for the years 2000-2010. The conclusions indicate that positive discriminations for states that have high potential has negative effects on growth and production. But positive discriminations for states that have high needs has positive effects on growth and production.
Abolghasem Esnaashari; Mohammad Hossein Pourkazemi; Asghar Abolhasani Hastiani; Ahmad Lotfi Mazraeshahi
Volume 3, Issue 12 , November 2013, , Pages 88-75
Abstract
The internal saving in a country, is the most important source for financing and economic growth. These savings are confronted with risk of a volatile rate of return to capital. The uncertainty in the rate of return on capital may lead to distorted economic decisions by the savers, consumers and investors. ...
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The internal saving in a country, is the most important source for financing and economic growth. These savings are confronted with risk of a volatile rate of return to capital. The uncertainty in the rate of return on capital may lead to distorted economic decisions by the savers, consumers and investors. Depending on the pattern of these behaviors we may observe deviations in the rate of economic growth. This study attempts to estimate the rate of economic growth with uncertainty in the rate of return on capital using standard Brownian motion and the optimized random control to compare it with the planned rate of economic growth. The findings indicate that; if the risk-aversion coefficient is less than one, the average long-term rate of economic growth will be less than the planned growth rate. Further, using the data on Iranian economy for the period 1974-2011, first, a dynamic model, based on SDE, was simulated for GDP by rate of growth %3.85, then, the relationship between capital return volatility (using the EGARCH model) and the rate of economic growth was analyzed. The results are indicative of a negative relationship between growth rate and the fluctuations in the rate of return on capital.
Ali Asadi; Seyed Meysam Esmaeili
Volume 3, Issue 12 , November 2013, , Pages 104-89
Abstract
In recent decades, the issues related to human capital and its impact on economic growth have been important. In this regard, the main objective of this study is to evaluate the impact of human development on economic growth in the period of 1971 -2012 in Iran. Therefore, according to the purpose of ...
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In recent decades, the issues related to human capital and its impact on economic growth have been important. In this regard, the main objective of this study is to evaluate the impact of human development on economic growth in the period of 1971 -2012 in Iran. Therefore, according to the purpose of this research, firstly we calculated Iran’s human development index based on the UN definition and analyzedthe impact of human development index on economic growth by using Markov-Switching model. The main model of this study is determined by using the model of Lucas and Line (2004). To estimate the nonlinear relationship between human development and economic growth based on the likelihood function, MSI model with two regimes (prosperity or recession) was chosen from the different states of the Markov - Switching (MS) model. Changing the relationship between these two variables over time, is one of the most important characteristics of Markov – Switching method. Based on the results, human development has a positive impact in recession periods and negative impact in prosperity on economic growth in Iran. Also, stability of the first regime (recession) is greater than the second (prosperity).
Ahmad Sabahi; Ali Akbar Naji Meidani; Elahe Soleimani
Volume 3, Issue 11 , September 2013, , Pages 18-9
Abstract
This study examines the impact of entrepreneurship on economic growth in selected countries, using data from the 2008 addresses. The study is applicational and gathering of data is doing through attributive style. Using the Romer endogenous growth model, variables that influence the growth of entrepreneurship, ...
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This study examines the impact of entrepreneurship on economic growth in selected countries, using data from the 2008 addresses. The study is applicational and gathering of data is doing through attributive style. Using the Romer endogenous growth model, variables that influence the growth of entrepreneurship, along with other important variables entered into the model. Three different indicators to measure entrepreneurship, including Global Entrepreneurship Monitors indexes are used. The results of the model estimated by Ordinary Least Squares support each other for sectional data in all three indexes, that this is will strengthen consistency and accuracy of results and findings. Findings suggest significant effects of entrepreneurship on economic growth. Of course, the amount and type of impact depends on the level of countries’s per capita income. So that in countries with high per capita income, entrepreneurship has positive effects on economic growth and entrepreneurship in low income and poor countries has a negative effect. According to the research’s results, entrepreneurship should be emphasized especially on the basis of innovation in the developed countries and is felt the need for government incentive policies to increase their participation in the economy in the form of entrepreneurship in developing countries also.
Abbasali Abounoori; Manizheh Teimoury
Volume 3, Issue 11 , September 2013, , Pages 40-29
Abstract
In this research, it has been tried to analyze the effect of financial development on economic growth in selected member States of Organization of Economic Cooperation and Development with Upper Middle Income countries and compare them with each other. To do this, 5 financial development indicators have ...
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In this research, it has been tried to analyze the effect of financial development on economic growth in selected member States of Organization of Economic Cooperation and Development with Upper Middle Income countries and compare them with each other. To do this, 5 financial development indicators have been used which include: The ratio of private credit by deposit money banks to GDP, the ratio of liquid liabilities to GDP, the ratio of deposit money bank assets to GDP, the ratio of private credit by deposit money banks and other financial institutions to GDP and the ratio of bank deposits to GDP. Estimation of the model, by using panel data econometric method, has been used for 23 member states of Organization of Economic Cooperation and Development and 26 countries with Upper Middle Income during 1980 -2009. Selected method in panel data which has been used to estimate model based on Limer Test and Hausman Test is fixed effect method. Results indicate that financial development has negative and significant effect on economic growth of selected countries and since the member states of Organization of Economic Cooperation and Development enjoy higher development, the intensity of this effect for this class of countries is lower. Also the effects of other variables such as government size, inflation rate, lag of real GDP per capita, investment and openness is based on theoretical expectation.
Hasan Heidari; Hamidreza Faaljou; Elmnaz Nazariyan; Yousef Mohammadzadeh
Volume 3, Issue 11 , September 2013, , Pages 74-57
Abstract
There are several studies that show social capital and health capital have impressive effect on economic growth. On the other hand, many researches in the health and community field, prove close relationship between social capital and health capital. So, this study examines and evaluates the health and ...
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There are several studies that show social capital and health capital have impressive effect on economic growth. On the other hand, many researches in the health and community field, prove close relationship between social capital and health capital. So, this study examines and evaluates the health and social capital effects and also their interaction effects on economic growth in the Middle East countries for 1990-2010 period using panel data and LS (EGLS) and 2SLS(EGLS). Data of study, extracted from WDI, UNDP, PWT and WGI statistical reports. Results show, not only health and social capital have impressive effect on economic growth, but also their interactions -given that social capital improves physical and mental health indicators- have significant effect on economic growth. As well as, public health improves the social indicators, and therefore has a double effect on the growth and economic development.
Hossein Haji Khodazadeh; Rasul Bakhshi Dastjerdi; Hamid Reza Nasirizadeh
Volume 3, Issue 11 , September 2013, , Pages 96-85
Abstract
Human capital has always been of high importance in economic growth literature. In this regard, several studies have tried to explain the role of this variable via the use of different models. The present study, in line with the previous ones, going to estimate the share of human capital in Iranian economy ...
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Human capital has always been of high importance in economic growth literature. In this regard, several studies have tried to explain the role of this variable via the use of different models. The present study, in line with the previous ones, going to estimate the share of human capital in Iranian economy production from 1974 to 2011 within the framework of Ozawa (1965) and Lucas’s (1988) endogenous growth model. In this study, the Autoregressive Distributed Lag Modelling Approach (ARDL) is employed to estimate the role of human capital in production. Moreover, the average of schooling years is used as an index of human capital. The results indicated that in spite of a positive and significant relationship between human capital and GDP, physical capital plays a more important role. While the share of human capital is 0.59, physical capital has a share of 0.75. based upon literature review, share of human capital must be more important and influential, so regarding distraction of main reasons of this phenomena the study recommends that we need to make university fields more productive-based.
Zivar Asadi; Javid Bahrami; Reza Talebloo
Volume 3, Issue 10 , June 2013, , Pages 26-9
Abstract
This paper evaluates the role played by financial development in economic growth, and also, the effect of economic growth on financial development of thirty six oil vis-à-vis nonoil economies during 1982-2011. Based on a panel of 5- years averages, we apply System Generalized Method of Moments ...
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This paper evaluates the role played by financial development in economic growth, and also, the effect of economic growth on financial development of thirty six oil vis-à-vis nonoil economies during 1982-2011. Based on a panel of 5- years averages, we apply System Generalized Method of Moments (SYS-GMM) to estimate the dynamic equations. The estimation results show that financial development plays a crucial role in the efficiency of investment, and thus, in performance of those economies. However the quality of financial institutions varies significantly between oil and nonoil countries. Another important result is that, despite of relatively high level of investment in oil economies, the quality of investment is really poor. This suggests that it is not the level of investment on its own but the quality of investment which is important. The high level of investment should be accompanied by a well developed financial system which channels financial resources away from less production projects. We also find that, the positive effect of per capita income on financial development is smaller in oil economies, and that, the real exchange rate is among the determinants of financial development in those economies.
Hadi Ghaffari; Mehdi Jalouli; Ali Changi Ashtiani
Volume 3, Issue 10 , June 2013, , Pages 58-41
Abstract
International sanctions against Iran have been lead to an increase in demand of foreign exchange and ultimately cause an increase in exchange rate. In this study, we aim to investigate and forecast the consequences of exchange rate increase on economic growth of major economic sectors of Iran during ...
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International sanctions against Iran have been lead to an increase in demand of foreign exchange and ultimately cause an increase in exchange rate. In this study, we aim to investigate and forecast the consequences of exchange rate increase on economic growth of major economic sectors of Iran during 1976-2014. For this purpose, we used a short scale macro-econometric model which has been estimated by the new co-integration approach. The results show that an increase in exchange rate will reduce the production of all economic sectors. Also, the growth rate of all economic sectors will be reduced to its minimum and then will increase. Also, we have come to the conclusion that the production of oil & gas sector will be reduced more than the other sectors.
Abdolali Monsef; Leila Torki; Seyed Jaber Alavi
Volume 3, Issue 10 , June 2013, , Pages 92-73
Abstract
There are different perspectives about the relationship between financial development and economic growth. The question has raised among economists is that whether the economic growth is affected by financial development or economic growth causes financial development? This study investigates the direction ...
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There are different perspectives about the relationship between financial development and economic growth. The question has raised among economists is that whether the economic growth is affected by financial development or economic growth causes financial development? This study investigates the direction of causality between financial markets indicators and economic growth in the D8 countries group during 1990-2010. For this, the panel causality testing approach, the method developed by Kónya (2006) based on the seemingly unrelated regressions (SUR) and Wald tests with the country specific bootstrap critical values, is applied. The results indicate that the direction of causality between financial development and economic growth not only is different in countries also, it is different for the each indicator of financial development. Empirical results show that within the financial development indicators, The domestic credit provided by the banking sector in all of selected countries except Pakistan, has affected the economic growth. This indicates a higher degree of dependence of these countries upon the banking sector. Furthermore, within the money market indicators, the domestic credit to private sector indicator has the greatest influence from economic growth.
Fathollah Tari; Mohammad Shirijian; Mohsen Mehrara; Hossein Amiri
Volume 3, Issue 10 , June 2013, , Pages 106-93
Abstract
Identifying the factors that contribute to sustained economic growth of countries is the main concerns of economic researchers. The present paper employs a Bayesian econometrics approach based on Bayesian Model Averaging (BMA) method to investigate the effect of public and private health expenditure ...
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Identifying the factors that contribute to sustained economic growth of countries is the main concerns of economic researchers. The present paper employs a Bayesian econometrics approach based on Bayesian Model Averaging (BMA) method to investigate the effect of public and private health expenditure on economic growth in developing economies. The empirical findings show that public health expenditure positively and private health expenditure negatively affect on the long-term economic growth of developing countries. Also, hospital beds do have a positive important role in explaining long-term economic growth.
