Soheila Parvin; Abass Shakeri; Samaneh Naseri
Abstract
Economic sanctions are a low-cost tool that replaces military action with a high economic, political and human cost. The severity of the effects of sanctions depends on the degree of dependence of the target economy on the outside world, the cooperation of the international community with the ones ...
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Economic sanctions are a low-cost tool that replaces military action with a high economic, political and human cost. The severity of the effects of sanctions depends on the degree of dependence of the target economy on the outside world, the cooperation of the international community with the ones imposing sanctions, and the potential ability to substitute domestic production with imports. If domestic supply is sufficiently resilient, sanctions act, such as an import substitution policy, can lead to higher growth and more employment. Otherwise, sanctions will act as a lack of domestic supply. This study evaluates the welfare effects of sanctions on basic items - whose rising prices affect living standards. We use a multiple choice model and logit function, the income and cost effects of sanctions as well as the impact of exchange rate changes on the price of basic goods on the welfare standard and the probability of households joining the poor group are considered. The results show that, due to the inelastic domestic supply, the possibility of substituting imports is limited, so the cost effects are dominant for the year 2019, in the effective exchange rate scenario, poverty growth is estimated at %2.2 (about 1828 thousand people, and in the official exchange rate scenario, poverty growth is 3.1 percent (and about 2575 thousand People have joined the poor group).
Yadollah Dadgar; Naser Elahi; Akbar n Keshavarzia
Abstract
In third millennium AD and after 9/11 attacks, financial crisis of 2007, the spread of terrorism, etc., financial and banking regulations have been much stricter around the world. In this era, due to political, economic and legal events, banking rules and regulations have been much faded in Iran. Supervision ...
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In third millennium AD and after 9/11 attacks, financial crisis of 2007, the spread of terrorism, etc., financial and banking regulations have been much stricter around the world. In this era, due to political, economic and legal events, banking rules and regulations have been much faded in Iran. Supervision of financial and banking authorities has been also much lessened in Iran and observance of financial standards has been neglected. Creating interaction and cooperation between usury-free banking system of Iran and international banking system needs a focus on common and mutually-accepted points in the form of proposed standards based on rationalism and ethics. The main objective of present research is to introduce and specify the proposed standards and make comparison between them to render solutions for interaction and expansion of cooperation between Iranian banking system and conventional banking system around the world. The main indices of rationalism and ethics in usury-free banking that are in accordance with conventional banking system and the only difference is the observance of Sharia criteria on these indices include: rules and regulations (internal and international regulations and observance of financial and international indices), beneficiaries’ rights (shareholders, customers, staff and related institutions) and social responsibilities (environment, social welfare, growth, promotion and employment). Financial crisis of 2007 in developed countries including United States of America, members of OECD and EURO region created shocks in economic growth, GDP, interest rate, unemployment rate, ratio of capital to assets of the banking system and the rate of stock price growth and all these factors resulted in making financial and banking regulations stricter in international banking.
