Karim Emami
Abstract
Estimations and calculations show that the ICT market in Iran was around 320 billion IRRs in 2015, which is about 2.6% of gross domestic production (GPD). at the end of the sixth plan for social and economic development of Iran, it has been set that this amount should be increased to be more ...
Read More
Estimations and calculations show that the ICT market in Iran was around 320 billion IRRs in 2015, which is about 2.6% of gross domestic production (GPD). at the end of the sixth plan for social and economic development of Iran, it has been set that this amount should be increased to be more than 5% of GDP and to be about 1000 billion IRRs. The present study will answer the following two questions. 1- Is increasing the share of ICT sector in GDP necessary? 2- How much does the economic growth change with one percentage increase in share of ICT sector in GDP? To answer these two questions, contribution of ICT sector on economic growth in Iran is first calculated through two methods of actual and potential contribution and then compared with each other. The results show that average GDP growth in Iran is about 3.8% for the period of 1990-2015 and, based on growth accounting, the potential contribution of ICT on economic growth is about half a percent. Actual contribution of ICT sector on growth has been higher than the potential share, except for years 1990 to 1992. Therefore, increasing value added of ICT sector increases GDP more than the increase of the value added of ICT sector, which is due to knowledge, market and network spillovers. Accordingly, increasing share of ICT sector in GDP is necessary during the sixth plan for economic development in Iran. Moreover, one percent increase in share of ICT sector in GDP increases economic growth at a rate of 0.93 percent.
Hojjatollah Mirzayi; Ali Asghar Banou'i
Volume 15, Issue 58 , October 2015, , Pages 84-110
Abstract
The role and importance of knowledge in economic growth has been considered since the second half of the twentieth century. As of 1980s, knowledge entered the production function as an endogenous and determining variable. By the time that knowledge, innovation and new technologies became of value; broad ...
Read More
The role and importance of knowledge in economic growth has been considered since the second half of the twentieth century. As of 1980s, knowledge entered the production function as an endogenous and determining variable. By the time that knowledge, innovation and new technologies became of value; broad studies were carried out in order to investigate the role and impact of these variables on economic growth, both at national and regional (regions within the national borders) levels. Economic researchers have tried to explain the disparities in economic growth of regions according to the differences in knowledge share and innovation. Through the production and publication of financial accounts of provinces in Iran since 1990, the pathway for such studies has been smoothed and the ground has been prepared for investigating the role and impact of knowledge and innovation on economic growth of different provinces and their diversity in economic growth. In the present article, the effects of knowledge variables (including specialized labor, R&D employees and value-added of high-tech sectors) have been surveyed alongside with two traditional variables of labor and capital on economic growth of Iran provinces during years 1990-2011 and the economic growth model has been estimated through this approach. The results of model estimation using stochastic effects method reveal that specialized labor growth rate has the highest effect on economic growth of provinces, by a coefficient equal to 2.05. The growth rates of capital per capita, and high-tech and intermediate-tech industries (per employee) have the coefficients of 0.89 and 0.19, respectively.
