Volume & Issue: Volume 6, Issue 22 - Serial Number 3, Autumn 2006, Pages 1-301 

The Effect of Human Capital on Economic Growth:Case of IRAN

Pages 15-43

Mehdi Taghavi, Hossein Mohammadi

Abstract In advanced industrial countries, Human Capital has had a major contribution on their growth. In fact human capitl is complementary part of and physical capital and complements, and human capital makes using of physical capital more clear. Analysis of economic growth in advanced industrial countries shows that economic growth can not only be explained with physical capital be labour and human capital as a main variable should be entered in emplenation of production function and og growth. In this paper using data from 1959-2002 we have evaluated the effect of human capital indices on growth of Iranian economy. Findings show that growth in the level of adult's education and average growth of the years of educating of labour force has a significant and positive effect on growth domestic product.

The Study of the Effect of Population’s Age Structure on Consumption Long- Term Function

Pages 45-70

Parviz Mohammadzadeh, Khaled Ahmadzadeh

Abstract The study of the relationship between age structure of population with macroeconomic variables and the study of its effects on the growth and development of Iran, has remained so far not to emphasized on. Iran is experiencing an increasing rate of population growth and facing the problems caused by it, the aftermaths of which will continue well in to the next decades.
This study is functional and documental. From the results, it is inferred that the marginal propensity of consumption in equations relating to age groups of population varies in the long term and with confirmation of the long term relation in the function of consumption expenditures of the private sector, the rate of balancing  is slow and variable as well.
In the process of economic policy making, the age distribution of population should be taken in to account, so that the measures taken in the way of accelerating of economic growth and planning related to it will accord with the population growth and the increasing changes occurred in its structure.

An Investigation on Theory of Population- Limited Institutional Approach

Pages 71-96

Rahim Dallai Esfahani, Reza Esmaielzadeh

Abstract Population size and its change have enormous effects on economic growth and development. In this respect vast amounts of researches in economics are devoted to population studies. Malthus theory of population is regarded as a core in population issues, which had created a pessimistic view on population and its impact on economy, while Malthus theory were challenged by many and specially by Verlhurst, which the latter theory actually outmoded Malthus’ and gained replacement, it is wondering how in the annals of science the Verlhurst theory is forbidden and how there is a consistent acknowledgment of failed pessimistic view of Malthus on population.
In this respect, this paper tries to reconsider Malthus and Neo-Malthusian views on population. And also, neglected Verlhust view from a limited institutional approach.  For this purpose, the study of impact of the institutions (like authority and observance of law,       economic freedom,..) and  their improvements on populations receives due attention.
In this research we also, in spite of recent Neo-Malthusian views, we pay attention to the positive impacts of population on economic growth. The view which in recent years gained wide acceptance and their followers are expanding rapidly in various academies,   Research used method. In this study is descriptive and authors purposes a reconsideration long growth positive effects of population rather than short run negative effects in economic planning.

The Role of Foreign Direct Investment (FDI) on Employment In Iran

Pages 97-122

Shahriyar Nessabian

Abstract In this paper by using panel data and statistics of 1993-2004, and FDI statistics, labour demand function for three economic sectors (agriculture, industry and services) were estimated. The results show that the outcome of (F.D.I) during the study is not significant. But this effect on the skill labour in services sector is positive and in industrial sector is negative. The reason for this difference in industrial sector is using of old technology and in services sectors is high education. By presenting the FDI in  industrial sector,  employment will decrease and  FDI for employment in agricultural sector is neutral.

The Government and Market Performance in the Process of Iran's Economic Growth

Pages 123-160

Mohammad Raza Monjazeb, Hossein Mohamadi, Abbas Hosseini Sohi

Abstract In this article with an introduction to market economy versus planned economy, we review different economic doctrines by looking at their roles and efficiency of each one of them to show that the  selection  and  allocation  of  resources is according  to  economic  efficiency, culture, scarcity to reachness  of resources and etc.
Then we review the public companies performance and privatization in Iran, and according to data for Iran (1959-2002), we estimate the production- investment elasticity by a growth model and compare  them  with  together.
The result of this article shows that there is found a positive  effect  of  private  and  governmental  investment  on production  growth  by statistical  methods  and  tests. Also there is no difference between these two variables. So without structural reforms, we can not change the growth trend in Iran.

Estimation of Supply of Foreign Direct Investment in Iran

Pages 161-204

Kambiz Hojabr Kiani, Kiomars Sabzi

Abstract Investment is one of the most important issues in economic. For economic growth to take place, investment is a major factor especially in developing countries. In the global atmosphere for survival and growth of countries with high technology and production capabilities, investment is a vital requirement.
 Therefore foreign financial resources as a complementary are necessary for internal resources. Foreign direct investment (FDI) as a financing method is beneficiary in two ways. First, it will cover the lack of investment. Second, it can serve as a technology transfering tool. Based on all these facts it is critical to investigate the factor effecting foreign direct investment and trying to change those in a suitable manner.
In this paper, using econometric model and "Auto-Regressive Distributed Lag" method, we estimated the effect of relevant explanatory variables on FDI. The results of the estimation indicates that: First, there is no long-run (equilibrium) relation for supply of foreign direct investment but
there exists a short- run relation. Second, there is a positive correlation between foreign direct investment, GDP, exchange rate, human capital and lagged foreign direct investment. Also the relation between foreign direct investment and inflation, tax, and tariff is negative.

The Estimation of Petrol's Demand Function in Iran During 1968-2002

Pages 205-228

Abbas Ali Aboonoori, Hiva Shiveh

Abstract In this paper our intention is to introduce some effective variables on petrol consuming, and demand function for petrol in Iran.
Also we want to show why different consumer policies can't change demand for petrol on optimal manner. This is done by using statistical and econometrics analyses, we estimate the demand for petrol and then show that which one of exogenous variable like price of petrol, growth of population, number of vehicles and growth national income have had  more effective on stimulating of demand for petrol in Iran during 1968 to 2002. That is there is very small relation between price and demand for petrol; also there is very good relation between demand for petrol and three parameters in our results.

Estimating the Behavior of the Real Exchange Rate in Iran

Pages 229-255

Abdolmajid Jalaie, Hamid Reza Horri, Fatemeh Irani Kermani

Abstract How the real exchange rate behavior is affected by macroeconomic variables within a country is important. Accordingly, this paper has tried, to explain the behavior of it, and to estimate RER for Iran in period of 1959 to 2004.  Estimation of the model has been done through VAR and VECM.  Estimation of the model showed that Monetary Policy and the degree of economic openness have had a negative impact on the real exchange rate in the short run, but in the long run their impact have turned to be positive. Also, Exchange Policy, which is the indicator of the exchange system in any country, has had a negative impact on the RER in the short run, but in the long run the impact of controls on the exchange system has been positive on RER.

An Investigation of Revenue Impact Generating from Substitution of the Value Added Tax for Corporations Tax: The Case of Mazandaran Province

Pages 257-279

Ahmad Jafari Samimi, Seyyed Jafar Larimi, Khosro Azizi, Mohssen Hosseini

Abstract The purpose of the present paper is to investigate the revenue impact generating from substitution of Value Added Tax for current corporations tax of economic units in The Mazandaran Province. According to the province Bureau of Tax, in 2004, there were 19576 corporations file tax of which only 7856 were subjected to tax. Present study used a random sample of 365 corporations from different cities in the province of which the necessary data for 357 of them could be collected. Also due to the vast differences between the performances of corporations and economic units in the province, the statistical analysis were performed in five different scenarios.
Our findings based on regression models and also the mean difference test for current tax and value added tax using the SPSS statistical package
indicate that the current corporations tax is not proportionally varied with their value added in the province. We have also shown that the revenue generating feature of the value added tax is fully doubtful at 7 percent rate. Therefore, an appropriate rate of 10 percent which most countries around the World proposed when VAT introduced, has been suggested.

The Review of Efficiency in Tourism Industry By Using Non-Parametric Methods(Iran and other Region Countries)

Pages 281-301

Mohammad Hosseyn Pourkazemi, Javad Rezaee

Abstract In economic literature, the maximum of output to a given amount of input, is efficiency and vise-versa. In general, there are two main parametric and non- parametric, approaches for measuring efficiency. In this paper, we have used method of non-parametric approach based on mathematical programming. Data envelopment analysis (DEA), a
non-parametric method is used in this study for evaluation of Iran's tourism industry and comparison with other countries of the region. The most important feature of the DEA is its applicability for the firms that have multiple intput and outputs.
Using DEA, we study the efficiency of Iran's tourism industry and compare it with other countries of the region in 2003, assuming both constant and variable return to scale. The results of our study show that, subject to former assumption, efficiency in Bahrain, Turkey, Syria  are maximum and the average efficiency  is equal to %74, which means that the idle capacity is 26 percent in that year. On the other hand, with the later assumption, United Arab Emirates and Azerbaijan were added to the list too, and average efficiency is equal %83/3.
So, it is suggested that for increasing the efficiency of unefficient countries, on the basis of our founding, these countries have to follow the Model of Turkey's Tourism Industry as an efficient Model.