Ali Nassiri Aghdam; Zeynab Mortazavifar
Abstract
To transform their innovative ideas to profitable businesses, entrepreneurs need to organize many different transactions. To perform theses transaction, they need to operate in the context of institutional environment. If institutional environment facilitates transactions and lowers their costs, it is ...
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To transform their innovative ideas to profitable businesses, entrepreneurs need to organize many different transactions. To perform theses transaction, they need to operate in the context of institutional environment. If institutional environment facilitates transactions and lowers their costs, it is said that there is a good business environment and we expect that the benefits of transactions outweigh their costs and in this environment, innovations relevant to transactions can be realized and vice versa. In this paper, following John R. Commons, one of the pioneers of original institutional economics, we argue that to lower transaction costs, institution must be able to resolves conflicts of interest. In other word, to design cost-economizing institutions, one needs to recognize conflicts of interest and find solutions in the way that they can be resolved. In this framework, we demonstrate that some of the World Bank’s Doing Business Indicators are designed to indicate the existence and efficiency of such institutions. If it seems acceptable, then improving business environment would be a continuous process of designing institutions that their main function is resolving conflicts of interest.
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.
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Volume 2, Issue 5 , July 2002, , Pages 35-74
Mehdi Yazdani; Hamed Pirpour
Abstract
In general, development of infrastructures and implementation of economic projects require financing. However, the exchange rate fluctuations lead to increasing costs of financing through conversion, transaction, economic, credit and liquidity risks. Hence, in this study, the effect of the exchange rate ...
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In general, development of infrastructures and implementation of economic projects require financing. However, the exchange rate fluctuations lead to increasing costs of financing through conversion, transaction, economic, credit and liquidity risks. Hence, in this study, the effect of the exchange rate volatilities has been investigated on financing practices of companies listed in Tehran Stock Exchange using autoregressive distributed lags method during monthly period 2006-2015 and then, the effect of this variable has been determined on foreign direct investment (FDI) inflow in economic sectors of Iran using panel data method during 1994-2015. According to the results, the value of assets, stock price index, economic freedom index, inflation rate and exchange rate volatilities are identified as determinants of firms’ financing. Also, the pattern of FDI is a function of sectoral value-added growth, capital productivity index, inflation rate, economic freedom index and the exchange rate volatilities where the coefficients are significant and consistent with theoretical expectations. Furthermore, increasing exchange rate fluctuations can decrease domestic and foreign financing because exchange rate fluctuations lead to different risks.
Amir Reza Soori
Volume 14, Issue 53 , July 2014, , Pages 37-63
Abstract
The long time passed since the commencement of globalization process has caused those countries who were not seeking achievement of a free market within the framework globalization to take benefit from regional-orientation as a solution for their foreign trade, as regional-oriented free market, is both ...
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The long time passed since the commencement of globalization process has caused those countries who were not seeking achievement of a free market within the framework globalization to take benefit from regional-orientation as a solution for their foreign trade, as regional-oriented free market, is both cheaper and more accessible than globalization. This study tries to analyze the factors affecting the Iran economic convergence with the EU, D8, OIC, ECO, GCC, and ASEAN by using data over the period 1995-2009 based on the dynamic panel approach and the GMM method. In order to explain the bilateral trade between Iran and its trading partners, a gravity model has been used through revising the recent studies with a new emphasis. Based on the study findings, the Iran’s trade flow follows the Linder theory based on existence of a positive relationship between bilateral trade and income convergence. Meanwhile, the model estimations indicate that the economic size, income per capita and direct foreign investment have significantly direct effects on Iran’s bilateral trade flows with the selected regional blocks, while the distance has significantly affected such trade relations reversely.
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.
Omid Pour Heidari; Esmaeil Akhlaghi Yazdinejad
Volume 9, Issue 35 , January 2010, , Pages 37-56
Abstract
This study is investigating the extent of using and effectiveness of sophisticated techniques and risk and inflation analyzing in evaluation of long term projects in Tehran Stock Exchange in 2006. To collect data for this research we designed a reliable and valid questionnaire. The result indicate that ...
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This study is investigating the extent of using and effectiveness of sophisticated techniques and risk and inflation analyzing in evaluation of long term projects in Tehran Stock Exchange in 2006. To collect data for this research we designed a reliable and valid questionnaire. The result indicate that the managers of the companies in Tehran Stock Exchange are using the following techniques: net present value, profitability index, internal rate of return, and accounting rate of return in order to evaluate the long term projects. Also the results showed that in view of the above managers techniques based on inflation such as the method based on real value of cash flow have the most effectiveness in decision making for investment. Other results showed that the most important obstacles of using sophisticated capital budgeting techniques are not employing scientific and practical word force; and insufficient indexes and variants in the country to implement required calculations.
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Volume 2, Issue 4 , April 2002, , Pages 37-68
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Volume 5, Issue 16 , April 2005, , Pages 37-76
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Volume 4, Issue 12 , April 2004, , Pages 37-55
seyyed parviz jalili kamju; ramin khochiani
Abstract
Based on economic structure of a country, defense spending and security costs as a public good, can have a positive or negative impact on private sector activities. This research applies a partial coherence approach for the period 1959-2017 to evaluate the relationship between defense spending and security ...
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Based on economic structure of a country, defense spending and security costs as a public good, can have a positive or negative impact on private sector activities. This research applies a partial coherence approach for the period 1959-2017 to evaluate the relationship between defense spending and security costs as two important parts of the state budget, with the formation of a fixed private capital and oil revenues with a constant tax effect. The results showed that by keeping the effect of tax revenues as fixed in four-year time scales, and in the period 1969-1978, defensive expenditures and the formation of fixed private capital were not co-phase and defense expenditure was a leading variable for the formation of fixed capital, which shows a confirmation of crowding-out effect in Iranian economy. In contrast, in period 1989-1997, these two variables are co-phase and no crowding-out effect has occurred. Also, in short- and long-term, the formation of private fixed capital is a leading variable that justifies the need for security and increasing its costs. During period 1969-1978, in the short-term, two variables of defense spending and oil revenues are in opposite phase. The two variables of security costs and oil revenues are in co-phase in the short run and the phasic difference arrows indicate the causality of oil revenues to security costs during the years 1986-1999. Based on the structure of Iranian economy and the fact that Iran does not export military equipment, it is suggested that defense spending be optimized in order to control the crowding-out effect and security costs to be increased to the point that they have a positive impact on the formation of private equity.
Mohammad Bagher Shirmehenji; Mahdiyeh Moradizadeh; Mohammad Javad Nourahmadi
Abstract
The theoretical literature on fiscal decentralization has identified several channels for the impact of this policy on economic growth. Some studies emphasize the positive effect of fiscal decentralization on economic growth, while others consider it as a potential factor reducing economic growth ...
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The theoretical literature on fiscal decentralization has identified several channels for the impact of this policy on economic growth. Some studies emphasize the positive effect of fiscal decentralization on economic growth, while others consider it as a potential factor reducing economic growth following its implementation. Due to this theoretical ambiguity, several studies in recent decades have attempted to empirically examine the effect of fiscal decentralization on economic growth. The findings of these studies are diverse and, in some instances, contradictory. To examine and conclude from these different results, this study uses a multilevel meta-analysis approach. To do so, we conducted a comprehensive review of empirical studies in the relevant field and applied a meta-analysis protocol for data selection. Ultimately, we identified 23 cross-country studies comprising 506 regressions and 635 coefficients for analysis. Studies that deviated from the protocol or lacked sufficient information for data extraction were excluded. The combined results of these individual studies, after accounting for publication bias and moderator variables, reveal that fiscal decentralization has a small and positive effect on economic growth. In addition, the results of this study showed that the indicators used to measure fiscal decentralization and economic growth, the period and sample of the countries under review, and the presence or absence of variables such as human capital, physical capital, investment rate, foreign investment, tax revenue, education, unemployment rate, political stability, population growth, urbanization rate, and public sector size in the regression models utilized in individual studies Significantly contribute to explaining the heterogeneity observed in their findings.
Nahid Pour-Rostami
Volume 15, Issue 57 , July 2015, , Pages 39-74
Abstract
The spread of high economic growth among East Asian countries in the last three decades resulted in increasing attention regarding these countries’ development models. The present study attempts to investigate the process of integration among 15 countries in East Asia and to identify factors influencing ...
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The spread of high economic growth among East Asian countries in the last three decades resulted in increasing attention regarding these countries’ development models. The present study attempts to investigate the process of integration among 15 countries in East Asia and to identify factors influencing the convergence of these countries during the years 1980 to 2012. The results show that the hypothesis of absolute beta convergence and sigma convergence are confirmed in the region. Examining the convergence toward the average reginal GDP per capita shows that the absolute beta convergence and sigma convergence are not confirmed for Japan. Meanwhile, conditional convergence is shown for Hong Kong, South Korea and Singapore, while absolute convergence is confirmed for Brunei, China, Indonesia, Malaysia, Thailand, Cambodia, Laos and Vietnam. These results indicate a significant difference between the three countries of Hong Kong, South Korea and Singapore, regarding GDP per capita compared with the average GDP per capita in the region. Due to Japan's position as a leading economy in the region, we investigate these countries’ convergence with Japan. The results show that all countries (except Macau, Brunei and Mongolia) have convergence with Japan. Asian international input-output tables depict a highly deepening and widening interdependency among manufacturing sector in East Asian countries during the years 1985-2005. Their interdependency which can be explained by "Flying Geese Pattern of Development" started with the acceptance of Plaza Accord in 1985 and the drastic wage increase in Japan in the early 1980s. Because of this interdependency, in the second part of this study we investigate the relationship between total export and bilateral export by using extended gravity model during the years 1988-2012. The results confirmed a significant positive relationship between bilateral exports and some of the model’s variables such as GDP and total relative exports of countries in the sample.
Reza i Moosavi Mohsen; Haideh Norouzi
Volume 11, Issue 42 , October 2011, , Pages 39-64
Abstract
This paper investigates the inflation tax. Laffer Curve surfaces of inflation tax have
been estimated in Iran, using time series data for the period 1961-2006. Considering the high
inflation ratio of iran during the last three decades, it is hypothesized that iran operates in
fourth region of the ...
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This paper investigates the inflation tax. Laffer Curve surfaces of inflation tax have
been estimated in Iran, using time series data for the period 1961-2006. Considering the high
inflation ratio of iran during the last three decades, it is hypothesized that iran operates in
fourth region of the Laffer curve surface. In this research, Cagan!s money demand function
is used. Also, we consider an explicit role for the reserve ratio and it introduced inflation and
required reserve ratio as locus of instruments which maximize the inflation tax. Results of
this survey show that Iran operates in right side of the Laffer curve surfaces (region I) and
inflation tax maximize at the highest inflation rate.
Seyed Komail Tayyebi; Lila Torki
Volume 10, Issue 39 , January 2011, , Pages 39-57
Hossein Abbasinejad; Akbar Komeyjani; Ali Taiebnia; Ahmad Tashkini
Volume 10, Issue 38 , October 2010, , Pages 39-65
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Volume 5, Issue 17 , July 2005, , Pages 39-64
Mahdieh Akbari Roshan; Shapour Mohammadi; Jafar Ebadi
Abstract
The expected value of a company’s stock can change in response to new inside and outside information, depending on the nature of the company. The main purpose of this paper is to test the effect of new and different types of information on the bid-ask spread. Accordingly, using with ...
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The expected value of a company’s stock can change in response to new inside and outside information, depending on the nature of the company. The main purpose of this paper is to test the effect of new and different types of information on the bid-ask spread. Accordingly, using with an event study on a selected sample, we identify release days and specify dummy variables and then we analyze the effect of information on the bid-ask spread with a panel data odel.Other variables include stock return, transaction volume, market return, and the percentage change in the dollar’s price, oil price, and the average price of precious Metals. Results of the empirical model show that while the new inside information has a positive effect on the liquidity, changes in the outside information lead to a wider bid-ask spread and lower stock liquidity. Therefore, outside policy has a negative effect through informational risk and the stability of the outside variable is important for the market’s performance.
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.
Batoul Raf’at; Seyed Komail Tayyebi
Volume 10, Issue 36 , April 2010, , Pages 41-58
Abstract
This study examines the relationships between FDI flows and trade to Iran. Theoretically, FDI and international trade can be substitute or complementary. Within the early theories of foreign direct investment and multinational firms, FDI and foreign trade were considered to be substitute. New international ...
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This study examines the relationships between FDI flows and trade to Iran. Theoretically, FDI and international trade can be substitute or complementary. Within the early theories of foreign direct investment and multinational firms, FDI and foreign trade were considered to be substitute. New international trade theories emphasize, the complementary relationship between FDI and foreign trade .This is the result of introducing new aspects in the models like increasing returns to scale, product differentiation and technology-differences among nations. We study empirically the impact of foreign trade on foreign direct investment (FDI), using data on inward FDI to Iran from 1973 through 2006.
We find that foreign trade can encourage FDI and also FDI can increase trade. On the other hand, results show that there is a complementary relationship between trade and FDI. Beside trade, GDP, Exchange rate and some economic variables are affected by FDI.
Abbas Arabmazar; Ali Akbar Bajelan
Volume 8, Issue 30 , October 2008, , Pages 41-69
Abstract
This study estimates optimal commodity tax rates regarding efficiency and social justice. A many- person Ramsey rule and Bergson – Samuelson social welfare function are used for estimating optimal tax rates. We need to estimate price elasticities of commodities before computing optimal tax rates. ...
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This study estimates optimal commodity tax rates regarding efficiency and social justice. A many- person Ramsey rule and Bergson – Samuelson social welfare function are used for estimating optimal tax rates. We need to estimate price elasticities of commodities before computing optimal tax rates. These elasticites come from estimation of Almost Ideal Demand System based on household expenditure data, in urban area,s over the period of 1993-2005 and 10 cost deciles. The Almost Ideal Demand System has been estimated by using Panel Data approach. The contrast between efficiency and equity is examined by including a parameter called ''Rate of inequality aversion parameter'' in social welfare function. Optimal tax rates are computed from Lagrange – approach solution of nonlinear systems under alternative assumptions about rate of inequality aversion parameter and fixed Tax Revenues.
The Results show that when inequality aversion parameter equals zero, optimal tax of different commodities will be equal. Otherwise, they are different. The larger the parameter, the greater the difference. Tax rates on commodities which have large share in expenditure of lower deciles decrease while tax rates on other commodities increase. Also, with increase of the parameter, marginal cost of the social welfare decreases.
Parviz Mohammadzadeh
Volume 8, Issue 28 , April 2008, , Pages 41-72
Abstract
Budget deficitis the result of financial polices in economics. Using of these polices has significant and important effect on economy. The most important question about increasing of government debt or budget deficit is whether it is able to change the real variable in economy or not. We can find answer ...
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Budget deficitis the result of financial polices in economics. Using of these polices has significant and important effect on economy. The most important question about increasing of government debt or budget deficit is whether it is able to change the real variable in economy or not. We can find answer to this question by analyzing the outcome of budget deficit in short-run and long- run. In order to answer the question, relationship between budget deficit and money demand has been surveyed in this paper. In this paper, we survey the effect of budget deficit on money demand. There are three main theories: 1) Keynesian theory 2) Neoclassical theory and 3) Ricardian equivalence theory. The result based on econometrics models by using Iran economy data indicated that there is a long-run dynamics relationship between budget deficit and money demand.
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.
Reza Akbarian; Seyyed Mohssen Heydaripour
Volume 9, Issue 34 , October 2009, , Pages 43-63
Abstract
The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has ...
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The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has been used in two separate econometric models "Auto-Regressive Distributed Lag (ARDL)" in order to investigates the effects of financial market development on the economic growth. In order to explain the private sector behavior, the rate of claims on private sector to domestic credit has been used as an independent variable.
The empirical results in two models suggest that in the short and long run, the financial development has negative effect on economic growth. This result supports the opinion about negative effect of financial development on economic growth in developing countries with a weak control on loans. In both models the influence of openness on economic growth is positive. The results also show the economic adjustment policies had negative effect on economic growth.
Hamid Shahrestni; Farzin Arbabi
Volume 9, Issue 32 , April 2009, , Pages 43-66
Abstract
In this study, by making adjustments in the real business cycle models in a small open economy, a dynamic stochastic general model has been developed for the first time to study the business cycle prosperities of Iran. The findings of this research show that by viewing only the technologic shock, the ...
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In this study, by making adjustments in the real business cycle models in a small open economy, a dynamic stochastic general model has been developed for the first time to study the business cycle prosperities of Iran. The findings of this research show that by viewing only the technologic shock, the volatilities in the macro variables fluctuations of the model will be much lower than the values observed for the economy of Iran, and by considering the role of oil prices shocks, the results of the model have better compatibility with the observations made in the economy of Iran and could explain some properties of the business cycles of Iran’s economy. The findings show that with a positive oil shocks, there will be an increase in consumption, investment and production and the results of the model are similar to those of real observations in the economy of Iran. The shocks in the global real interest rate have slight and trivial effects on production, consumption and investment. In addition, the results show that changes in
the cyclic fluctuations in variables such as consumption, investment, production and the trade balance obtained by the model is slightly different from changes observed in the Iran’s economy. In the model, correlation and co-movement of consumption, investment and imports have been seen like real observations.
