Abdol majeed Jalaee; Mahnaz Alibeygi
Abstract
The purpose of this study is to investigate the effect of trade and foreign direct investment on economic growth of OPEC members using the convergence and gravitation model. The model is estimated by the spatial Durbin regression model (SDM) using spatial panel data for the period 2010-2020. ...
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The purpose of this study is to investigate the effect of trade and foreign direct investment on economic growth of OPEC members using the convergence and gravitation model. The model is estimated by the spatial Durbin regression model (SDM) using spatial panel data for the period 2010-2020. Convergence is estimated using cross-sectional data method and gravitation model using panel data method. The results show that foreign direct investment affects economic growth inside and in neighbor countries through spillovers, increasing trade and technology imports in the countries. Also the size of government has no effect on trade and economic growth. The results of convergence and gravitation model show that there is convergence between the target countries and gross domestic product has a positive effect on bilateral trade, but the Linder variable has a negative effect on mutual trade, consistent with the theory.
tayebe chaman; parisa mohajeri; Ali Arabmazar Yazdi
Abstract
The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial ...
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The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial development, literacy rate, government size and industry value added (%GDP). Secondly, financial development has a significant negative effect (in short-run and long-run) on tax evasion. In other words, higher financial development leads to lower tax evasion. This finding is consistent with the theoretical expectation. Thirdly, literacy rate, government size and industry value added (%GDP) have a significant negative effect on tax evasion. That means tax evasion is decreases by increasing each of them. Also, the variables of GDP per capita and tax complexity did not have a significant effect on tax evasion.
monireh rafat; Mostafa Emadzadeh; Zahra Ghandehary Alavijeh
Abstract
Globalization and economic openness, by raising external risks, increase the presence and interference of governments to support domestic economy. However, by integrating markets and creating competition in private sector, globalization decreases the presence of government in the economy. In this paper, ...
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Globalization and economic openness, by raising external risks, increase the presence and interference of governments to support domestic economy. However, by integrating markets and creating competition in private sector, globalization decreases the presence of government in the economy. In this paper, under the theoretical framework of compensatory and efficiency hypotheses, the relationship between government size and economic openness in the long- and short-term is investigated for select member countries of Organization of Islamic Cooperation for period 1998-2015. The designed model is estimated by using vector autoregressive (VAR) and the two-stage least squares (2SLS) methods. The results of vector error correction model (VECM) estimation show that in short run, government size, population and financial openness influence government size. In the long run, urbanization and population variables have the greatest impact on government size. The effect of financial openness on government size in the long run is decreasing, but the effect of the trade openness is increasing. The results of 2SLS estimation also show that the effect of efficiency hypothesis on the size of the government cannot outweight the incremental effect of the compensatory hypothesis and, as a result, with increasing economic openness in these countries, government size has become larger.
Hossein Bastanzad; Pedram Davodi
Abstract
Real exchange rate deviations should be consistent with behavior of fundamental indicators including terms of trade, openness, government size, the ratio of domestic to trading partners’ productivity, and net foreign direct investment. The aim of this paper is to study the response of exchange ...
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Real exchange rate deviations should be consistent with behavior of fundamental indicators including terms of trade, openness, government size, the ratio of domestic to trading partners’ productivity, and net foreign direct investment. The aim of this paper is to study the response of exchange rate to structural variables and its consistency with economics theory.Our estimation of a vector auto regression (VAR) model which relied on seasonal data during 1990-2015 underscores that real exchange rate (RER) is significantly depreciated with regard to the long run trend, while simultaneously and in contrast with theoretical basis, non-oil trade deficit widened, government size increased, and terms of trade improved due to higher international oil price. The accelerating gap between actual and long run trend of RER augments the unsustainability of balance of payments and foreign exchange market vulnerability against probable shocks. Foreign exchange forward market is constructed in practice to monitor demand composition in general and the share of speculative transaction in particular to increase information capacity of policy-makers to achieve the goal of financial stability and external sustainability in one hand as well as evaluating the Central Bank intervention capability on the other hand.
Fereshteh Mohammadyan; Hamid Amadeh; Abbas Shakeri
Volume 13, Issue 49 , July 2013, , Pages 117-150
Abstract
This article explains the differences in size and growth of governments over time. We first divide the theories of government size into three theories relating to demand side, supply side and other theories. Then these theories are empirically tested by a conceptual model for 103 countries and selected ...
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This article explains the differences in size and growth of governments over time. We first divide the theories of government size into three theories relating to demand side, supply side and other theories. Then these theories are empirically tested by a conceptual model for 103 countries and selected groups of countries (Muslim and socialist countries, democracies, authoritarian countries and federal countries) during the period of 1990 to 2010. The results show that among the demand side variables, per capita income, inequality and urbanization, respectively with negative, positive and positive signs, have a significant effect on the size of government. In the case of supply side variabels, indirect taxes have a significant positive effect on the size of government. Concerning other factors (factors other than the supply and demand side variables), the three variables that are the ratio of aging population, the degree of openness of the economy and the rate of female participation in the labor market have a significant positive effect on government size. The results also show that political structure, ideological structure, and presence or absence of centralization not only affect the government size but also the effect of economic variables is different when these structural factors change.
Ebrahim Ali Razini; Amir Reza Soori; Ahmad Tashkini
Volume 11, Issue 43 , January 2012, , Pages 199-218
Abstract
This study investigates the relation between unemployment rate and
Government Size in Iran. For that, we have used some VAR models,
which include the following variables: government size, measured as
total government outlays as a percentage of GDP, unemployment rate,
real GDP growth rate, Inflation ...
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This study investigates the relation between unemployment rate and
Government Size in Iran. For that, we have used some VAR models,
which include the following variables: government size, measured as
total government outlays as a percentage of GDP, unemployment rate,
real GDP growth rate, Inflation rate, minimum wage. Our results show
that an increasing in the Government Size would raise unemployment
rate, and an increasing the GDP growth rate and Inflation rate would
reduce unemployment rate.
