Mehdi Sadeghi Shahdani; Akbare Komijani; Mohammad Hadi Zahedi Vafa; Mohammad Ghaffary Fard
Volume 12, Issue 47 , January 2013, , Pages 97-122
Abstract
In economic studies, fiscal decentralization theories are used to increase productivity and efficiency of government and to improve the balance between different regions and it is mentioned as one of the fundamental tools in the way of transition to a market economy in developing countries. After Islamic ...
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In economic studies, fiscal decentralization theories are used to increase productivity and efficiency of government and to improve the balance between different regions and it is mentioned as one of the fundamental tools in the way of transition to a market economy in developing countries. After Islamic Revolution in Iran and especially after Iran-Iraq war, fiscal and economic decentralization was officially considered as a strategic policy for the development of Iran’s provinces. Firstly, the Provincial Planning Councils were founded and then the provincial revenue-expenditure system was devised to increase the degree of decentralization. But the main concern of economic planners was to investigate the mechanism of which the fiscal decentralization had an impact on economic growth and income distribution. In this paper, by using augmented Solow model, the direct and indirect effects of fiscal decentralization on economic growth is evaluated. After testing for the stationary of our panel of data, it is confirmed that there is a long-run relationship between variables of the model by using Pedroni and Kao tests. After estimating the model by using generalized least squares (GLS) method, it was shown that during the period of 1379-1386, fiscal decentralization (based on two measures of decentralization of national investment expenditures and decentralization of provincial investment expenditures) had a positive effect on economic growth and income distribution in provinces. This effect was in a way that one percent increase in fiscal decentralization would increase economic growth rate up to 0/04 percent. In addition, fiscal decentralization improve income distribution in provinces and indirectly affects economic growth of different regions.
Alimorad Sharifi; Mahdi Sadeghi Shahdani; Abedin Ghasemi
Volume 8, Issue 31 , January 2009, , Pages 91-119
Abstract
The allocation of subsidies payment has been mentioned in both articles 46 and 47 of the Third Socio-Economic, and Cultural Development Plan. The global oil price fluctuations and their direct impacts on the Iranian national budget allocations has resulted in energy subsidies payment to be one of the ...
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The allocation of subsidies payment has been mentioned in both articles 46 and 47 of the Third Socio-Economic, and Cultural Development Plan. The global oil price fluctuations and their direct impacts on the Iranian national budget allocations has resulted in energy subsidies payment to be one of the most challenging issues in the Iran’s economy. The objective of this research is the assessment of inflationary impacts of energy subsidy removal by using an energy input-output price model. The findings indicate that the costs of production in the different economic sectors will rise following energy prices increase. The inflationary impacts in non-metallic mineral products, forestry, and petroleum products will be the highest while the electricity price increase has dominant role in price inflation. The significant changes will happen in the macroeconomic variables such as private consumption expenditures, government consumption expenditures, gross fixed capital formation, as well as exports.