Farshad Momeni; Ali Nikounesbati
Abstract
Studies show that not only there are important differences between old and new institutionalism, but also new Institutional economics is not a single body of thought. In addition, there are important differences in the assumptions, methods and subject matter between the new institutional economics and ...
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Studies show that not only there are important differences between old and new institutionalism, but also new Institutional economics is not a single body of thought. In addition, there are important differences in the assumptions, methods and subject matter between the new institutional economics and neoclassical economics. Overall, the institutional approach led to major changes in explanations and policy recommendation about development problems, of which, we can mention the emphasize on importance of informal institutions and organizations, the importance of the firm and importance of interdisciplinary approach. Comparing the approaches of institutional and neoclassical economics toward economic growth, as the most important index of development, shows that institutional approach has greater explanatory power and it suggests different policy recommendations. Recent institutional studies show that creation of a democratic and participatory institutional structure is the foundation of economic growth and a prerequisite for the implementation of right economic policies. However, special attention also should be given to poverty and inequality. Therefore, the move towards a democratic structure is the most important institutional reform that should be done in Iran. This is the only practical way to reduce inequality and achieve sustained growth in the country.
Fatemeh Bazzazan; zahra seifi shahpar
Abstract
The aim of this paper is to evaluate the impact of financial flows on the real side of the economy. FSAM is one of the useful models used to assess those impacts. In this context, the main research question is how the extension of financial flows in the SAM framework, would affect production multipliers? ...
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The aim of this paper is to evaluate the impact of financial flows on the real side of the economy. FSAM is one of the useful models used to assess those impacts. In this context, the main research question is how the extension of financial flows in the SAM framework, would affect production multipliers? For this purpose, by using the Social Accounting Matrix for Iranian economy in year 1999, the resulting Financial Social Accounting Matrix is calculated at the national level, and the real SAM and FSAM multipliers are calculated and compared.
The results show that: 1) FSAM multipliers are greater than SAM multipliers for all accounts, that difference clearly describes the important role of the financial flows in the economy. 2) By increasing one extra unit in each one of the exogenous items, the financial intermediation sector generates the second maximum increase in the income for the factors of production and domestic institutions of the society after the agricultural sector which creates the largest increase in income in the economy. It is also creating the largest increase in the income of labors, that this can be one of the reasons of movement of the factors of production towards the financial intermediation and the growth of the financial sector in comparison to the real sector of the economy. 3) according to FSAM maltipliers results, it can be concluded that the financial system in Iran is a bank-oriented.
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.
Teymour i Mohammad; Sareh Aghaee Safi Abadi
Volume 15, Issue 56 , April 2015, , Pages 43-74
Abstract
Economists and environmentalists have come to the conclusion that the initial stages of economic development and growth result in worsening of environmental quality while in the later stages, the environmental quality improves. The relationship between income change and environmental quality has been ...
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Economists and environmentalists have come to the conclusion that the initial stages of economic development and growth result in worsening of environmental quality while in the later stages, the environmental quality improves. The relationship between income change and environmental quality has been referred to as the environmental Kuznets curve. In this paper, we have studied the environmental Kuznets curve for two types of pollution (air and water) using Mixed Model for the period 1988-2007 for developing countries. In addition to the variables of interest we include several explanatory variables. The results support the environmental Kuznets curve hypothesis for both types of pollution .For air pollution, the countries with per capita incomes over 2235 dollars (fixed price of 2005) have passed the return pint of the curve and for water pollution the countries with per capita incomes over 3623 dollars (fixed price of 2005) have placed in the descending part of the environmental Kuznets curve.
Mostafa Mobini Dehkordi; Teymour Mohammadi
Volume 14, Issue 55 , January 2015, , Pages 41-70
Abstract
In recent years, researchers have been increasingly noticed economic growth and its determinants. Exchange rate and its volatility are important factors in determining a country's economic growth. Various studies in this regard have shown contradictory results concerning the effects of exchange ...
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In recent years, researchers have been increasingly noticed economic growth and its determinants. Exchange rate and its volatility are important factors in determining a country's economic growth. Various studies in this regard have shown contradictory results concerning the effects of exchange rate volitality on economic growth. The purpose of this study, Considering the importance of this issue, is to evaluate the nonlinear effects of real exchange rate uncertainty on economic growth (oil and non-oil) from 1369/1 to 90/4. In this study, economic growth is a function of real exchange rate uncertainty, investment rate, active population growth and growth rate of human capital. To estimate the amounts of real exchange rate uncertainty, GARCH In Mean model is used. With the implementation of a program in eviews, a certain level of exchange rate volatility was calculated using criteria of standard deviation minimum. Then, GMM model is used to determine the effects of this volatility on economic growth. The results show that the real exchange rate uncertainty up to a certain level, which is investigated in this research, has a negative effect on economic growth, whether oil or non-oil.
Hasan Heidari; Roghayeh Alinazhad; Seied Jamallodin Mohseni Zonozi; Javad Jahangirzadeh
Volume 14, Issue 55 , January 2015, , Pages 157-183
Abstract
This study investigates the potential threshold effects in the relationship between corruption control index and GDP growth for the D-8 countries with the presence of other variables, including education expenditures, government consumption expenditures, agricultural raw materials exports, inflation ...
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This study investigates the potential threshold effects in the relationship between corruption control index and GDP growth for the D-8 countries with the presence of other variables, including education expenditures, government consumption expenditures, agricultural raw materials exports, inflation rate, and index of openness over the period 1996-2011. For this purpose, the paper uses a Panel Smooth Transition Regression (PSTR) model that is an appropriate method for explaining cross-country heterogeneity. Our result rejects the linearity hypothesis, and gives a threshold at corruption control of -0.862. Based on this threshold, we can build a two-regime model. In the first regime, corruption control, education expenditures, agricultural raw materials exports and index of openness variables have a significantly positive impact on GDP growth and government consumption expenditures and inflation rate variables have a significantly negative impact on GDP growth. In the second regime, however, corruption control, education expenditures, agricultural raw materials exports and index of openness variables have a positive impact and government consumption expenditures and inflation rate variables have a negative impact on GDP growth. Though, the impact of corruption control, education expenditures, agricultural raw materials exports and index of openness are increased and the impact of government consumption expenditures and inflation rate are dramatically declined.
Mohammad Mowlaei; Abolghasem Golkhandan
Volume 14, Issue 53 , July 2014, , Pages 83-108
Abstract
The budget deficit policy is one of the fiscal policy instruments for eliminating the shortage of government revenues and achieving targeted economic growth in many countries. In recent years, for various economic problems in Iran, governments get some parts of the budget deficit from different sources. ...
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The budget deficit policy is one of the fiscal policy instruments for eliminating the shortage of government revenues and achieving targeted economic growth in many countries. In recent years, for various economic problems in Iran, governments get some parts of the budget deficit from different sources. Foreign borrowing is one of the sources of deficit financing and the ways of using it may have positive and negative effects on economic growth. In this paper the empirical relationship between budget deficit and economic growth of Iran in the period 1980-2011 is analyzed in long and short run applying Johansen and Juselius co-integration method and vector error correction model (VECM). Results suggest that the impact of external debt on economic growth is negative and significant in the long run and short run. Thus, the optimal foreign borrowing and the other sources of deficit financing should be used for increasing employment and the high efficiency projects and the ability to pay foreign and domestic debts are necessary for achieving the targeted growth.
Mohammad Ghasem Rezaee; Mahboubeh Sabzrou; Mohammad Rezaee-Pour
Volume 13, Issue 51 , January 2014, , Pages 163-187
Abstract
In this paper, we focus on two major questions about tax incentives: 1) Do the countries compete over tax incentives in a same way as they compete over tax rates? ; 2) Do the offered tax incentives results in attracting investment and increasing economic growth? The results of testing the first question, ...
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In this paper, we focus on two major questions about tax incentives: 1) Do the countries compete over tax incentives in a same way as they compete over tax rates? ; 2) Do the offered tax incentives results in attracting investment and increasing economic growth? The results of testing the first question, in which spatial econometric technique for panel data and Maximum Likelihood Estimation (MLE) Method were used, indicate that the developing countries compete over tax rates and tax holidays (and don’t compete over investment rebates); In other words, governments consider other states’ tax policies as a benchmark for judging their own tax policies. The results of testing the second question, in which econometric techniques of dynamic data and Generalized Moments Method (GMM) were used, indicate that tax rates and tax holidays influence foreign direct investment while investment rebates don’t have such an effect and only tax rates have significant relationship with private sector investment and economic growth. Tax incentives which were tested here include tax rates reduction, tax holiday and investment rebates and empirical evidence is based on time period 1985- 2008 and the data for 45 developing countries.
Abbas Shakeri; Teymour Mohammadi; Hamid Nazeman; Javad Taherpoor
Volume 13, Issue 50 , October 2013, , Pages 63-86
Abstract
The issue of the impact of oil revenues on the economic performance of the countries that own these incomes is a significant part of the economic literature. One of the main reasons for the poor performance of resource-rich countries is the incidence of “Dutch Disease” in these countries. ...
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The issue of the impact of oil revenues on the economic performance of the countries that own these incomes is a significant part of the economic literature. One of the main reasons for the poor performance of resource-rich countries is the incidence of “Dutch Disease” in these countries. Considering this issue, after we review the literature on Dutch Disease, we first focus on the occurrence of Dutch Disease in Iranian economy and in the next stage, we study the effects of this problem on economic growth. To see if the problem of Dutch Disease has happened in Iranian economy or not, we have studied the production share of different tradable sectors (industry and agriculture) and non-tradable sectors (services and housing) and to study the effects of Dutch Disease on economic growth, we have used the growth models related to this research area and we have estimated these models by applying Ordinary Least Squares (OLS) method with Withe correction. The results of our study show that the Dutch Disease has happened in Iranian economy along with the increase in oil incomes, especially in 1970s and 2000s, and also the occurrence of Dutch Disease has had a negative effect on economic growth in Iranian economy.
Amir Khadem Alizadeh
Volume 13, Issue 50 , October 2013, , Pages 87-121
Abstract
In some of the new economic growth models, we pay attention to the effects of financial development on economic growth. This research investigates the relationship between capital market and economic growth in macro level during 1991-2011. The research is organized as follows: the introduction comes ...
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In some of the new economic growth models, we pay attention to the effects of financial development on economic growth. This research investigates the relationship between capital market and economic growth in macro level during 1991-2011. The research is organized as follows: the introduction comes as the first section. In section II, we review the literature on the relationship between economic growth and capital market. The theoretical foundations of capital market and economic growth in macro level come in third section. Research methodology and introduction of main variables of the growth model, capital market indicators, statistical methods and econometric issues for our estimations come in the next part. In the fifth section, we introduce the model and explain the variables of proposed growth model. In the next section we test the hypothesis of our research. So we investigate the relation between capital market and economic growth in a macro model using principal component analysis (PCA) and generalized method of moments (GMM) analysis in several scenarios. The results of our research indicate that in a macro analytical approach we didn’t find a positive and significant relation between the financial development indicators and economic growth. The Policy recommendations of this research are developing the capital market through defining and presenting new financial instruments to absorb liquidity for efficient firms in Iranian capital market.
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.
Kamran Mani; Jamshid Pajuyan; Teymor Mohammadi
Volume 11, Issue 42 , October 2011, , Pages 13-37
Abstract
The relationship between financial markets and the economic growth is a subject that has obviously been observed by many economists since the lifetime of Joseph Schumpeter. There have been various analyses and opinions on the development of financial markets and their effects on economic growth, and ...
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The relationship between financial markets and the economic growth is a subject that has obviously been observed by many economists since the lifetime of Joseph Schumpeter. There have been various analyses and opinions on the development of financial markets and their effects on economic growth, and various conclusions have been achieved through experimental studies. Some theoreticians view religious and cultural condition of countries as the factors of satisfactory effects on economical growth. Others believe bureaucracy and political establishment to be the main causes of such growth, while another group believes that the economic policy and strategies of each country play roles. The present article emphasizes the effect of taxes on the relationship between financial markets and economic growth in a model of endogenous growth. This effectiveness will be analyzed for period of (1992-2008). In this analysis, the study of panel data of more than 65 countries in the world signifies that taxes have negative effects and the development of commercial interactions has positive effects on the relationship between financial markets and economic growth. of Course, empirical findings of the study do not indicate significant relationship between taxes, financial markets and economic growth in the middle east countries.
Rouhollah Shahnazi; Zahra Dehghan Shabani
Volume 11, Issue 42 , October 2011, , Pages 161-185
Abstract
Doing business improvement influence on economic growth with increase
entrepreneurship, investment, property right and decrease production cost, price of domestic
production, informal sector, fiscal corruption, smuggled goods.
In this paper, factors affecting economic growth, especially doing business, ...
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Doing business improvement influence on economic growth with increase
entrepreneurship, investment, property right and decrease production cost, price of domestic
production, informal sector, fiscal corruption, smuggled goods.
In this paper, factors affecting economic growth, especially doing business, have been
analyzed using panel data models for 68 countries during 2003 ! 2006.
Results show weakness on seven components of doing business; i.e, Closing a business,
Registering property, Paying taxes, Trading across borders, Enforcing contracts, Employing
workers and Starting a business have negative effect on economic growth. Three other
components of doing business; i.e, Dealing with licenses, Getting credit and Protecting
investors have not expected effects on economic growth.
Asadollah Jalalabadi; Javid Bahrami
Volume 11, Issue 42 , October 2011, , Pages 213-247
Abstract
Due to uncertainty in economic growth theories, existence of various proxies for
effective factors on economic growth, and lack of indication of the most appropriate
econometric model for investigating effective variables on economic growth, the empirical
growth regressions have always faced uncertainty. ...
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Due to uncertainty in economic growth theories, existence of various proxies for
effective factors on economic growth, and lack of indication of the most appropriate
econometric model for investigating effective variables on economic growth, the empirical
growth regressions have always faced uncertainty. To investigate this phenomenon, we
should move from the classical econometrics towards the approaches which can
appropriately deal with uncertainty. One of these approaches is the !Bayesian Averaging of
Classical Estimates Approach" which has been used in this article to evaluate the uncertainty
of the effects of trade openness on economic growth in developing countries (52 countries)
during 1970 and 2006. The research findings indicate that the !Composite Trade Intensity"
which is considered as a suitable alternative for trade openness, has a positive and definite
effect on economic growth of these countries in the long run. Furthermore, it is revealed that
other criteria such as !Unweighted Averages of Tariff Rates", !Terms of Trade Growth" and
!Sachs & Warner openness indicator" (1995) # as proxies for trade openness # do not have
definite and determining effects on economic growth of these countries in the long run.
Javad Rezaee; Mohammad Nadali; Javad Alizadeh
Volume 11, Issue 41 , July 2011, , Pages 111-135
Abstract
This study examines the relationship between productivity growth and
commerce sector growth during the period of 1981-2007 and examines empirically
the causal link between productivity growth and commerce sector growth in Iran
using unit root and co- integration techniques ...
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This study examines the relationship between productivity growth and
commerce sector growth during the period of 1981-2007 and examines empirically
the causal link between productivity growth and commerce sector growth in Iran
using unit root and co- integration techniques within a bi-variate vector auto–
regressive (bVAR) and Vector Error Correction (VEC) framework.
The results reveal a positive relationship between Productivity growth and
commerce sector growth for Iran with the direction of causation running from
productivity to commerce sector growth.
Alimohammad Ahmadi; Jalal Dehnavi; Amin Haghnejad
Volume 11, Issue 41 , July 2011, , Pages 159-180
Abstract
This paper analyzes the Granger causality between economic growth and
Foreign Direct Investment (FDI) inflows in the three income groups of 112
developing countries over the period of 1980 to 2006. For this purpose, panel data
techniques, including panel unit root, panel cointegration, and panel vector ...
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This paper analyzes the Granger causality between economic growth and
Foreign Direct Investment (FDI) inflows in the three income groups of 112
developing countries over the period of 1980 to 2006. For this purpose, panel data
techniques, including panel unit root, panel cointegration, and panel vector error
correction model, have been applied. The research findings indicate that; firstly,
there is a positive and statistically significant relationship between economic growth
and FDI inflow in each of three groups. Secondly, these findings, also, provide
strong evidence from gtanger causality between these two variables in all income
groups.
