Payame Noor UniversityEconomic Growth and Development Research2228-595472620170321The Mechanisms through which Industrial Clusters Affect Regional Economic Growth in Iran: Panel Data ApproachThe Mechanisms through which Industrial Clusters Affect Regional Economic Growth in Iran: Panel Data Approach17342593FAHamidAzizmohammadlouAssistant Professor of Economics, Imam Khomeini International University (IKIU), Qazvin, IranJournal Article20151123In this paper, the effects of industrial clusters on regional economic growth have been analyzed through an endogenous growth model using panel data approach (30 provinces during 2001-2012).The findings show a statistically significant relationship between industrial clusters and regional economic growth so that 1% increase in industrial cluster growth leads to 0.09% increase in reginal economic gowth rate. Investigating the mechanisms in which industrial clusters affect regional economic growth, reveals that the positive effects of industrial clusters on Iran regional economic growth are due to the improvement in labor and human capital. Industrial clusters, however, could not successfully enhance economic growth through technology development and finance facilitation. The findings show the necessity of serious attention to the technology and financial improvement program in the industrial cluster development policies.In this paper, the effects of industrial clusters on regional economic growth have been analyzed through an endogenous growth model using panel data approach (30 provinces during 2001-2012).The findings show a statistically significant relationship between industrial clusters and regional economic growth so that 1% increase in industrial cluster growth leads to 0.09% increase in reginal economic gowth rate. Investigating the mechanisms in which industrial clusters affect regional economic growth, reveals that the positive effects of industrial clusters on Iran regional economic growth are due to the improvement in labor and human capital. Industrial clusters, however, could not successfully enhance economic growth through technology development and finance facilitation. The findings show the necessity of serious attention to the technology and financial improvement program in the industrial cluster development policies.https://egdr.journals.pnu.ac.ir/article_2593_e25971dae50039d55b23235ba685e3b0.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321The Effect of Improving Management of Oil Wealth Abundance on Public Health Spending in the Selected Oil Exporting and Developed Countries: GMM ApproachThe Effect of Improving Management of Oil Wealth Abundance on Public Health Spending in the Selected Oil Exporting and Developed Countries: GMM Approach35482591FAAbolfazlShahabadiAssociate Professor, Department of Economics, Bu-Ali Sina University, Hamedan, IranMarziehSalehiM.A. in Economic Development & Planning, Bu-Ali Sina University, Hamedan, IranJournal Article20160127<span>The impact of increased public health spending on economic-social performance of society and especially the importance and its role in providing and ensuring sustainable development in developing and developed countries, has been interest of economists and politicians since past to present. For this purpose, many patterns attempted to identify the factors affecting growth of per capita public health spending and to explain their impact. Due to the vital role of per capita public health spending on economic development, current study using the generalized method of moments (GMM) has paid to investigate improving the management of oil wealth abundance on public health spending in the selected oil and developed countries during the period 1996-2012. The evidences indicate that efficient, intelligent and prospective management of oil resources have important role in increasing per capita public health spending in both groups studied selected oil and developed countries. This represents a serious move for selected oil countries to improve the management of abundance of oil wealth. Furthermore study findings show that per capita GDP growth and consumer price index have a positive and significant impact on growth of public health spending in oil and developed countries. Also results show that income inequality has a negative and significant impact on growth of per capita public health spending in both groups of countries.</span><span>The impact of increased public health spending on economic-social performance of society and especially the importance and its role in providing and ensuring sustainable development in developing and developed countries, has been interest of economists and politicians since past to present. For this purpose, many patterns attempted to identify the factors affecting growth of per capita public health spending and to explain their impact. Due to the vital role of per capita public health spending on economic development, current study using the generalized method of moments (GMM) has paid to investigate improving the management of oil wealth abundance on public health spending in the selected oil and developed countries during the period 1996-2012. The evidences indicate that efficient, intelligent and prospective management of oil resources have important role in increasing per capita public health spending in both groups studied selected oil and developed countries. This represents a serious move for selected oil countries to improve the management of abundance of oil wealth. Furthermore study findings show that per capita GDP growth and consumer price index have a positive and significant impact on growth of public health spending in oil and developed countries. Also results show that income inequality has a negative and significant impact on growth of per capita public health spending in both groups of countries.</span>https://egdr.journals.pnu.ac.ir/article_2591_3d3e57cab79d22f6398d36f7e38d9c55.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321Determining the Level of Regional Inequality in Provinces of Iran: Analysis of Multidimensional Composite IndexDetermining the Level of Regional Inequality in Provinces of Iran: Analysis of Multidimensional Composite Index49702592FAZahraKarimi MoughariAssociate Professor in Economics, University of Mazandaran, Mazandaran, IranJavadBaratiPh.D. Student in Economic Development, University of Mazandaran, Mazandaran, IranJournal Article20160107Regional inequality is a multidimensional phenomenon and includes different areas of economic, social and cultural. Therefore for any country is necessary to introduce a multidimensional composite index for the measurement of regional inequality. This study aimed to determine the level of regional inequality of Iranian provinces and to identify the main determinants of the inequality, to introduce a combined index for regional inequality measurement. To this end, this study has selected 25 indicators in 5 different dimensions (economic, knowledge and human capital, infrastructure, social-cultural and environmental) and it has collected data relating to the years 2001 and 2013. Also, by applying innovation, it has used two-step principal component analysis. The results show that regional disparities are declining in period under review. In this period, Provinces of Tehran, Yazd and Semnan have had the highest development level, respectively, and Sistan-Baluchistan province also has been fixed at the end place. The results showthat in provinces with higher development level. Economic and human capital indicators were main causes of inequalities in the regional development. Also high population density has forced the government to invest more in infrastructures, health and education in more developed provinces. On the other hand,having knowledge and investment spillovers is an effective factor in development of Tehran’s neighboring provinces.Regional inequality is a multidimensional phenomenon and includes different areas of economic, social and cultural. Therefore for any country is necessary to introduce a multidimensional composite index for the measurement of regional inequality. This study aimed to determine the level of regional inequality of Iranian provinces and to identify the main determinants of the inequality, to introduce a combined index for regional inequality measurement. To this end, this study has selected 25 indicators in 5 different dimensions (economic, knowledge and human capital, infrastructure, social-cultural and environmental) and it has collected data relating to the years 2001 and 2013. Also, by applying innovation, it has used two-step principal component analysis. The results show that regional disparities are declining in period under review. In this period, Provinces of Tehran, Yazd and Semnan have had the highest development level, respectively, and Sistan-Baluchistan province also has been fixed at the end place. The results showthat in provinces with higher development level. Economic and human capital indicators were main causes of inequalities in the regional development. Also high population density has forced the government to invest more in infrastructures, health and education in more developed provinces. On the other hand,having knowledge and investment spillovers is an effective factor in development of Tehran’s neighboring provinces.https://egdr.journals.pnu.ac.ir/article_2592_3729160b512e35765c44de071a9d7fbe.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321The Effects of Monetary Index of Thrift and Hardworking on Human Capital in Selected Developing Countries: An Emphasis on IranThe Effects of Monetary Index of Thrift and Hardworking on Human Capital in Selected Developing Countries: An Emphasis on Iran71802616FAAmirmansourTehranchianAssociate Professor in Economics, University of Mazandaran, Babolsar, IranSaedehAzizi SaalesPh.D. Student in Economics, University of Mazandaran, Babolsar, IranآرزومحمودیM.A. Student in Economics, Allameh Mohades Nouri University, Nour, IranJournal Article20160123The aim of this study is to investigate the effect of monetary index of thrift and hardworking (as cultural capital) on human capital in selected developing countries during 2005-2012.The data gathering method in this survey is based on library databases. Panel method is used to analysis the data and test the hypothesis. In order to estimate the model, generalized method of moments (GMM) is used. The results show that indices of cultural capital (hardworking index and monetary index of thrift) have positive and significant effect on the human development index in short and long-term. Also the impact of cultural factors on the human development index is higher in the long term than the short term. The innovation of this survey is to use new cultural indices such as monetary index of thrift and hardworking index which are highlighted in foreign studies.The aim of this study is to investigate the effect of monetary index of thrift and hardworking (as cultural capital) on human capital in selected developing countries during 2005-2012.The data gathering method in this survey is based on library databases. Panel method is used to analysis the data and test the hypothesis. In order to estimate the model, generalized method of moments (GMM) is used. The results show that indices of cultural capital (hardworking index and monetary index of thrift) have positive and significant effect on the human development index in short and long-term. Also the impact of cultural factors on the human development index is higher in the long term than the short term. The innovation of this survey is to use new cultural indices such as monetary index of thrift and hardworking index which are highlighted in foreign studies.https://egdr.journals.pnu.ac.ir/article_2616_cf719947631919eb9d294c2ad3cdda25.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321Investigating Interaction of Foreign Direct Investment and Domestic Investment (Comparative Study of 136 Countries and Iran)Investigating Interaction of Foreign Direct Investment and Domestic Investment (Comparative Study of 136 Countries and Iran)81962594FAHassanDaliriAssistant Professor of Economics, Golestan University, Gorgan, IranJournal Article20160111On the theoretical front the literature on the linkage between FDI and domestic investment is ambiguous. This paper investigates whether foreign direct investment crowds in or crowds out domestic investment in the world. Our data analysis covers 136 of the world countries for the period 2000-2013. This paper uses panel VAR model and we have four samples of countries: 1- total sample (136 countries) 2- OECD member (31 countries) 3- low income (20 countries) 4- OPEC member (10 countries). In addition, the same link in Iran in the period 1990-2014 were analyzed separately. Our main conclusion is that FDI has positive impact on domestic investment in OECD member and OPEC member states but has negetive impact on domestic investment in low income contries. Also, domestic investment has positive impact on FDI in OECD, Low income and total countries and negetive impact in OPEC members.On the theoretical front the literature on the linkage between FDI and domestic investment is ambiguous. This paper investigates whether foreign direct investment crowds in or crowds out domestic investment in the world. Our data analysis covers 136 of the world countries for the period 2000-2013. This paper uses panel VAR model and we have four samples of countries: 1- total sample (136 countries) 2- OECD member (31 countries) 3- low income (20 countries) 4- OPEC member (10 countries). In addition, the same link in Iran in the period 1990-2014 were analyzed separately. Our main conclusion is that FDI has positive impact on domestic investment in OECD member and OPEC member states but has negetive impact on domestic investment in low income contries. Also, domestic investment has positive impact on FDI in OECD, Low income and total countries and negetive impact in OPEC members.https://egdr.journals.pnu.ac.ir/article_2594_4798ca3a12c5f6ea2bb6524e0ca0a047.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321The Effect of Government Size on Good Governance and Economic Performance of Selected CountriesThe Effect of Government Size on Good Governance and Economic Performance of Selected Countries971122595FAYousefMohammadzadehAssistant Professor of Economics, University of Urmia, Urmia, IranSamadHekmati FaridAssistant Professor of Economics, University of Urmia, Urmia, IranElmiraSharifiM.A. in Economics, University of Urmia, Urmia, IranJournal Article20160203Although 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<span lang="AR-SA" dir="RTL">.</span>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<span lang="AR-SA" dir="RTL">.</span> 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.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<span lang="AR-SA" dir="RTL">.</span>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<span lang="AR-SA" dir="RTL">.</span> 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.https://egdr.journals.pnu.ac.ir/article_2595_dc6066b822f844d7ce9c95a8d2843249.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321Regulation of Monetary Policy on Economic Growth (Assessment of McCallum Rule in Iran)Regulation of Monetary Policy on Economic Growth (Assessment of McCallum Rule in Iran)1131242936FASeyed ZiyaodinKiya HoseiniAssistant Professor of Economics, Mofid University, Qom, IranMonaHashemiM.A. in Economics, Islamic Azad University, Tehran, IranAminHatamiAssistant Professor of Economics, Islamic Azad University, Tehran, IranRafikNazariyanAssistant Professor of Economics, Islamic Azad University, Tehran, IranJournal Article20160229The 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.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.https://egdr.journals.pnu.ac.ir/article_2936_24804c30082a163b7e33fb125592936b.pdfPayame Noor UniversityEconomic Growth and Development Research2228-595472620170321The Impact of Monetary and Fiscal Policies on Employment Fluctuations with an Emphasis on Private Sector EmploymentThe Impact of Monetary and Fiscal Policies on Employment Fluctuations with an Emphasis on Private Sector Employment1251443111FAMohamad AliEhsaniM.A. in Economics,Tehran University, Tehran, IranHadiKeshavarzAssistant Professor of Economics, Persian Gulf University, Bushehr, IranMasoudKeshavarzM.A. in Economics,Tehran University, Tehran, IranJournal Article20160512Monetary and fiscal policies are considered of high significance in the economic stabilization policies that are utilized to manage the demand side, but economic experts do not agree upon this policy and its results. This is worthwhile to mention that the source issues in the agreement or disagreement with this policy are the differences of opinions about the effects of this policy on the economy. This study attempts to investigate the effects of monetary and fiscal policies on the labor market fluctuations via the adjustment to the new Keynesian dynamic stochastic general equilibrium model in Iranian economy. After estimating the model using Bayesian approach, the model was simulated. The results of variance decomposition show that government employment was the largest role in explaining the fluctuations in unemployment and monetary shocks play the most important role in private sector employment. Impulser response functions also show that monetary shock, government employment shock and oil revenues shock reduce the total unemploymentMonetary and fiscal policies are considered of high significance in the economic stabilization policies that are utilized to manage the demand side, but economic experts do not agree upon this policy and its results. This is worthwhile to mention that the source issues in the agreement or disagreement with this policy are the differences of opinions about the effects of this policy on the economy. This study attempts to investigate the effects of monetary and fiscal policies on the labor market fluctuations via the adjustment to the new Keynesian dynamic stochastic general equilibrium model in Iranian economy. After estimating the model using Bayesian approach, the model was simulated. The results of variance decomposition show that government employment was the largest role in explaining the fluctuations in unemployment and monetary shocks play the most important role in private sector employment. Impulser response functions also show that monetary shock, government employment shock and oil revenues shock reduce the total unemploymenthttps://egdr.journals.pnu.ac.ir/article_3111_a912dc4cff4347f62681043e853447e8.pdf