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Bahman Ghadami Damabi; Mohammad Hassan Fotros; Ghlamali Haji
Abstract
The present study aims to model the dynamic relationship between institutional indicators, environmental pollution, economic development, and public health in MENA member countries. This applied research covers the period from 2010 to 2023. To model the dynamic relationships between the variables, the ...
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The present study aims to model the dynamic relationship between institutional indicators, environmental pollution, economic development, and public health in MENA member countries. This applied research covers the period from 2010 to 2023. To model the dynamic relationships between the variables, the Time-Varying Parameter Panel Factor-Augmented Vector Autoregression (TVP-PFAVAR) approach has been employed.The results indicate the presence of a nonlinear dynamic behavior among the study variables. Accordingly, the TVP-PFAVAR model was used instead of traditional panel vector autoregressive models. Based on the findings, institutional indicators have a positive effect on economic development and public health while reducing environmental pollution. Additionally, economic development positively and increasingly influences institutional indicators, public health, and environmental pollution. The results further reveal that public health has a positive impact on institutional indicators and economic development, but a negative effect on environmental pollution. Moreover, environmental pollution negatively affects all three indicators.It is noteworthy that, in general, the long-term trends of the variables had a stronger impact on each other compared to their short-term trends, reflecting the Le Chatelier principle among MENA countries. According to this principle, variables have more opportunities to influence one another over the long run.
yasaman hokmollahi; ali taiebnia; mohsen mehrara
Abstract
Trade liberalization, both directly and indirectly (through structural changes), affects the total factor productivity. The key factor in determining the direction of this impact is the quality of institutions. In this study, to consider the most important aspects of structural change, we propose a multidimensional ...
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Trade liberalization, both directly and indirectly (through structural changes), affects the total factor productivity. The key factor in determining the direction of this impact is the quality of institutions. In this study, to consider the most important aspects of structural change, we propose a multidimensional index for structural change using the principal component method and then applying the Bayesian averaging method (IVBMA) econometrics model evaluate the effect of trade liberalization, structural changes, and the quality of institutions on total factor productivity in a subsample of 64 countries. our IVBMA results indicate that structural change, business freedom, and resources rents are the most important variables in explaining the observed differences in the total factor productivity index. Structural change with a posterior inclusion probability (PIP) of 0.74 Is the most important independent variable to explain the observed differences in the level of total factor productivity. Increasing the multidimensional index of structural change with a posterior coefficient of 0.14 has a negative effect on total factor productivity. An increase in business freedom index and resources rents leads to 0.39 and 0.22 increase in total factor productivity index. Trade liberalization with a posterior inclusion probability of 0.45 had a positive effect on total factor productivity. Granger causality test also shows that trade liberalization is the cause of structural change; Therefore, trade liberalization in this study has caused structural changes that reduce productivity.Keywords: Structural change, Trade liberalization, Institutions, Productivity
International Commerce
Hanane Aghasafari; Milad Aminizadeh; Alireza Karbasi
Abstract
Institutions and infrastructure as a set of social factors, rules, beliefs and infrastructure services are the key factors influencing bilateral trade between countries. So, this study investigates the effects of institutions and infrastructure on Iran’s bilateral trade with the main trading partners. ...
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Institutions and infrastructure as a set of social factors, rules, beliefs and infrastructure services are the key factors influencing bilateral trade between countries. So, this study investigates the effects of institutions and infrastructure on Iran’s bilateral trade with the main trading partners. For this purpose, gravity model, poisson pseudo maximum likelihood was developed and the analysis was based on panel data of trade volume between Iran and the trading partners over the period 2003-2016. The results implies that the interaction effect of different institutional indicators on Iran's bilateral trade with developing country partners and developed country partners are negative and significant. So that, Iran tends to trade more with less corrupt countries, higher political stability, implementing trade facilitation laws and more democracy. The positive and significant impact of the different institutional distance indicators on Iran's bilateral trade with developing country partners and developed country partners confirm that Iran tends to trade more with the partners that have stronger institutions. Moreover, the positive and significant effect associated with transport and communications infrastructure on Iran's bilateral trade with developing country partners and developed country partners indicates that the infrastructure facilitates trade between Iran and the main trading partners.
Economic Growth
Behzad Maleki Hassanvand; Mohammad Jafari; Shahram Fatahi; Hadi Ghafari
Abstract
The aim of this paper is examining the simultaneous impact of good governance and government spending on economic growth in MENA countries. To estimate model, we've used GMM method during 2002-2016. The results show that good governance (weighted average of six indexes) and government spending ...
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The aim of this paper is examining the simultaneous impact of good governance and government spending on economic growth in MENA countries. To estimate model, we've used GMM method during 2002-2016. The results show that good governance (weighted average of six indexes) and government spending have positive and significant effect on economic growth. GDP last period and trade openness variable have positive and significant effect on economic growth. Inflation variable has negative and significant effect and private investment variable has positive and insignificant effect on economic growth. The effect of both economic growth and government spending is positive and significant. Good governance index resulted from combination of existing six indexes by Principle Components Model, has been estimated in another model and it indicates positive relationship with more effect on economic growth.
