javad taherpoor; fatemeh rajabi
Volume 15, Issue 59 , January 2016, , Pages 35-56
Abstract
During last two decades, studies in the area of political economy focused more on how the political structure of a country can influence economic outcomes. It is reasoned that the higher the degree of political competition, the more the likelihood of implementing mature policies and parliament can do ...
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During last two decades, studies in the area of political economy focused more on how the political structure of a country can influence economic outcomes. It is reasoned that the higher the degree of political competition, the more the likelihood of implementing mature policies and parliament can do better its role to control and monitor the government and this has a positive impact on economic growth. On the other hand, when the degree of political competition decreases, the parliament either aligns with the government or confronts it, which in both cases the probability of implementing efficient and pro-growth policies will decrease.
In this study, we examine the effect of political competition on economic growth. Accordingly, the alignment between the parliamentary and presidential political party was considered as a measure of the presence of the political parties and political competition and it is entered in an economic growth model alongside other variables. Estimation of the model during years 1988-2014 showed that alignment of legislative and executive branches has a negative relationship with economic growth or more clearly, the decline in political competition has had a negative effect on economic growth.
Abbas Shakeri; Teymour Mohammadi; Fatemeh Rajabi
Volume 15, Issue 58 , October 2015, , Pages 37-60
Abstract
The purpose of this study is to investigate the determinants of inflation in the period 1960-2011 and autoregressive model (VAR) is used here. In this study due to the structure of the Iranian economy, the mark-up index is derived and its growth growth along with liquidity growth, nominal exchange ...
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The purpose of this study is to investigate the determinants of inflation in the period 1960-2011 and autoregressive model (VAR) is used here. In this study due to the structure of the Iranian economy, the mark-up index is derived and its growth growth along with liquidity growth, nominal exchange rate growth and productivity growth are used in the model. The results of Granger causality test show one-way causal relationship between the three variables of mark-up growth, exchange rates growth and labor productivity growth in one hand and inflation on the other hand, as well as two-way causal relationship between money growth and inflation. Also impuls response functions confirm a negative relationship between labor productivity growth and inflation. Moreover, based on the analysis of impulse response functions of three variables of mark-up growth, liquidity growth and exchange rate growth, they are positively correlated with inflation. Variance decomposition showed that each of the variables of inflation, mark-up growth and labor productivity growth in the short-term and respectively with the shares of 45, 29 and 25 percent, have the highest explanation on inflation forecast variance. But in the long run, the effect of mark-up growth is reduced, and labor productivity growth, inflation, liquidity growth, exchange rate growth and mark-up respectively explain 30, 28, 17, 14 and 10 percents of the forecast errors.
