Financial monetary economy
Lale Mushtakhi; narges samadpoor
Abstract
INTRODUCTIONThe role of the financial system on economic development has attracted and received increased attention from both academia and policy makers, with resulting divergent views emerging. Over the past decades, focus on this area has increased, with mixed findings which remains a theoretical and ...
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INTRODUCTIONThe role of the financial system on economic development has attracted and received increased attention from both academia and policy makers, with resulting divergent views emerging. Over the past decades, focus on this area has increased, with mixed findings which remains a theoretical and empirical controversy. Financial development has played a leading role in many developing economies (Puatwoe and Piabuo , 2017). There is a widespread believe among policy makers that financial development enhances productivity which promotes growth. There are a few key findings from the analysis of how financial development affects economic growth. The first is through the savings rate that leads to investment and capital accumulation, and the second is through channel allocation, in which financial development can increase efficient investment allocations thereby increasing productivity .(Ikhsan1 and Satrianto,2023)But the situation in developing countries is different. Some studies argue that the financial sector stimulates economic growth, while others argue the opposite (Sulemana and Dramani, 2020). The study (Adusei, 2013) also shows evidence that financial development undermines economic growth and is an anti-growth factor. There are also few studies that state that financial development has no effect on economic growth. These studies provide evidence in support of this. They provide the concept that financial development and economic growth are not related and are two separate phenomena that are independent from each other (Yıldırım, S., Özdemir, BK., and Doğan, B., 2013).All these different views are sufficient reasons to examine The effect of financial development indicators on economic growth in IranThe purpose of this research is to investigate the long-term and short-term effects of financial development indicators (financial efficiency and financial depth) on economic growth in Iran.2- THEORETICAL FRAMEWORKSome previous studies (Bittencourt, 2012; Estrada, Park, & Ramayandi, 2010; Hassan, Sanchez, & Yu, 2011; Škare, Sinković, & Porada-Rochoń, 2019) have indicated that financial development can affect economic growth by performing the function of financial intermediaries so that the distribution of financial resources can be absorbed by the productive sector. Other studies (Moyo & Le Roux, 2020; Petkovski & Kjosevski, 2014) provide evidence that financial development has a negative influence and has not been able to play a role in economic growth. IkhsanSome studies show that developing countries mostly report the negative impact of financial development on economic growth, which can be caused by specific characteristics, principled framework and management issues.Some studies (Bloch and Tang 2003., Ram and Andersen 1999., & Tang and Trap 2003.( also provide evidence in support of the concept that financial development and economic growth are not related and are two separate phenomena that are independent of each other (Bloch and Tang 2003, Ram and Andersen 1999, & Trap).Therefore, the results that have been provided over time about this relationship have been inconclusive and only three main results have been obtained from these studies: positive, negative and lack of influence.According to the results of the study (Bakar and Sulong, 2018), the impact of financial development on economic growth depends on the choice of time frame, the sample of countries, the list of variables, the choice of different indicators and even econometric methods. 3- METHODOLOGYIn order to investigate the long-term and short-term effects of capital efficiency and financial depth on economic growth, this research utilises the newly proposed autoregressive distributive lag (ARDL) approach which was developed and introduced by Pesaran and Shin (1995 and 1998), Pesaran et al.The analysis using the ARDL method is based on the interpretation of three equations: dynamic equation, long-term equation and error correction. Before estimating the model, default tests of unit root, homogeneity and determination of optimal interval should be performed4- RESULTS & DISCUSSIONUsing the ARDL technique, it was found that there is a positive short-term relationship between liquidity volume and economic growth and a similar negative short-term relationship between banking system deposits and economic growth. But in the long run, the banking system's deposits have a positive and significant effect on economic growth. While the effect of liquidity on economic growth in the long run is negative. Also, private sector credit as an indicator of financial efficiency, both in the long run and in the short run, has no significant effect on economic growth5- CONCLUSIONS & SUGGESTIONSThe impact of financial development on economic growth is one of the most important channels in economic matters, which has attracted many debates and controversies, but the results of research related to the impact of financial development indicators on economic growth are theoretically and empirically different from each other.All these different views are sufficient reasons to examine the effect of financial development indicators (financial efficiency and financial depth) on economic growth in Iran.Therefore, in this study, the long-term and short-term effects of financial efficiency indicators and financial depth on economic growth in Iran's economy during the period from 1983 to 2021 were investigated in a time series.According to the results obtained from the research, it can be stated that: The volume of liquidity can lead to economic growth if it can provide a suitable basis for the optimal allocation of resources and increase capital efficiency.Savings can be important as one of the sources of economic growth in the long term, but it cannot be considered as the cause of economic growth in Iran in the short term.Simply granting facilities to the private sector cannot guarantee financial efficiency, but the way these resources are used and spent is in the direction of economic growth and development, which will show financial development.
Financial monetary economy
saeed rahimi; parvaneh salatin; Mahmoud Mahmoudzadeh; Masoud Sufi Majidpour
Abstract
In this study, the effect of banks' performance on economic convergence in the provinces in the period of 2018-2019 has been investigated using spatial econometrics. The results of the estimation of the models showed that the ratio of facilities to bank deposits as an indicator of banking performance ...
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In this study, the effect of banks' performance on economic convergence in the provinces in the period of 2018-2019 has been investigated using spatial econometrics. The results of the estimation of the models showed that the ratio of facilities to bank deposits as an indicator of banking performance and monetary indiscipline have a negative and significant effect on economic convergence in the provinces. The speed of convergence of conditional beta estimated by considering bank indices is higher than absolute convergence.Also, real capital stock, human capital and Internet penetration rate have a positive and significant effect and the rate of economic participation has a negative and significant effect on economic convergence. Investigating the effects of spillovers in 2018 showed that the spillover effect of banking performance on neighboring provinces was positive. Also, with the increase in the distance between the provinces, the spillover effect has decreased, in fact, the spillover effects on the neighboring provinces are more than the provinces that are located at a further distance.
seyed reza pournaghi; Ahmad Jafari Samimi; Farid Askari; Farzaneh Khalili
Abstract
Abstract Expanded
1- INTRODUCTION
Developments and fluctuations in economic growth will cause significant changes in the economy and its variables. Therefore, examination of the cause of fluctuations and instability in economic growth can eliminate or improve their impact. During the last 4 ...
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Abstract Expanded
1- INTRODUCTION
Developments and fluctuations in economic growth will cause significant changes in the economy and its variables. Therefore, examination of the cause of fluctuations and instability in economic growth can eliminate or improve their impact. During the last 4 decades, economic adjustment policies - which have been proposed by the international community to various countries with the aim of stablization of the economy in the short run and changing the structures of the economy in the long run - have been implemented in Iran. This study was conducted to investigate the compatibility of economic adjustment policies in Iran.
2-THEORETICAL FRAMEWORK
Economic growth of a country is the change in production of a country compared to the previous year. Therefore, a change in any of the components of a country's GDP causes a change in economic growth and, consequently, causes fluctuation or instability in it.
Oil revenues as one of the most important export revenues from natural resources, depending on the type of use (in current consumption or investment) affect economic growth or instability. On the one hand, oil wealth can accelerate the pace of development due to the level of financial development and increase national income, on the other hand, long-term economic growth will be damaged due to imbalances in different sectors of the economy.
Financial liberalization on the one hand, citing neoclassical theories and the free flow of capital from high-capital economies to low-capital economies, life cycle models and increasing private savings and attracting investment in the portfolio, increases project returns. on the other hand, some countries were affected by the implementation of financial liberalization and faced severe financial crises, followed by economic instability.
Trade liberalization due to the transfer of knowledge and technology to a country can improve economic growth. Trade also allows producers to access larger markets. Improved productivity through the use of untapped resources, more distinctive products with higher quality and lower prices, and ultimately increased production and surplus consumer welfare. Despite the positive effects of trade liberalization, this policy will destabilize economic growth in developing countries that have few products to offer to the world market.
Privatization is a fundamental structural change of ownership, which is transferred from the public sector to the private sector, and this change of ownership leads to fundamental changes in the basic incentives and motivations of owners and managers of enterprises and the goals of those enterprises. the effect of privatization on economic growth can be demonstrated through microeconomics theories, the theory of new institutional economics, the theory of public choice and the theory of representation.
In the empirical literature, the importance of the role of government is how it can provide a stable environment for economic growth. Examination of the issue of government spending (as an indicator of its size) and GDP growth, there are conflicting results, and the relationship between government spending and economic growth depends on the sources of financing government spending and government performance. Thus, if government spending is financed through borrowing, the relationship between government spending and economic growth is negative, and if government spending is financed through taxes, the relationship between government spending and economic growth is positive.
3- METHODOLOGY
In this study by using the vector auto regressive model (VAR), the relationship between economic adjustment policies on fluctuations and instability of economic growth during the period 1981 to 2019 has been investigated. the annual fluctuations of economic growth were selected by using the exponential conditional variance (EGARCH) model with intervals 1 and 2 to show the variance inequality and the effects of the three policies of privatization, trade liberalization and financial liberalization were measured. The variables of trade intensity, volume of assets transferred to the private sector and the amount of foreign assets of the banking system are considered as indicators of trade liberalization, privatization and financial liberalization policies, respectively.
4- DISCUSSION
Out results showed that the variables of financial liberalization have the lowest (0.6%) and the variables of commercial liberalization have the highest (21%) share in the volatile changes of economic growth. Also, financial liberalization only increases in the short run and does not affect instability in the long run. The trade liberalization variable will reduce economic instability, while the surge in oil revenues will increase instability in economic growth. The government expenditure variable in this study has a dual behavior, so that in the short run will reduce instability and in the long run will increase the instability of economic growth. Privatization policies have the most short-term (0.0173) and long-term (0.0052) effects on economic growth instability and will increase economic growth instability.
5- CONCLUSION & SUGGESTIONS
Examination of the results of the instability response to various variables shows that not only economic adjustment policies incompatible in terms of their impact on growth fluctuations, but also not compatible with government policies. In the short and long term, privatization and financial liberalization policies will increase and trade liberalization policies will reduce instability. While the government's fiscal expansion policy (increase spending) will reduce instability in the short run and increase economic growth instability in the long run. Thus, the simultaneous implementation of trade liberalization policies and increased government spending (financial expansion) will reduce instability in the short and long term. Because both policies are compatible with each other and their results in the short-term and long-term will reduce the instability of economic growth. Therefore, it is recommended to adopt trade protection policies (both in terms of imports and exports) because these policies will not only improve the trade balance and increase the level of trade liberalization, but also the instability of economic growth. and will also reduce production.
Ali Rasooli Zadehi; Ali Reza Daghighi Asli; Marjan Daman Keshideh; Gholamreza Geraei Nejad; majid Afshari Rad
Abstract
Abstract Expanded 1- INTRODUCTION The development of the financial system in all economies is one of the challenging issues that has been raised by economists in different decades. According to the latest report of the World Economic Forum (2012), creating an efficient, resilient and fair international ...
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Abstract Expanded 1- INTRODUCTION The development of the financial system in all economies is one of the challenging issues that has been raised by economists in different decades. According to the latest report of the World Economic Forum (2012), creating an efficient, resilient and fair international financial system can support customers and activate savings and investment, which in turn can lead to economic growth and the creation of jobs and businesses in the economy. In regard to the results of previous studies, a higher growth rate can be expected from any country that has a more efficient financial system. However, despite much evidence to support the positive impact of financial development on economic growth, there is still no consensus on the relationship between the two. In general, there are two main schools of thought on this subject. Proponents of the first school of thought argue that financial development is essential for economic growth (Levin, 1997; and McKinnon, 1973). In contrast, proponents of the second school of thought, who are predominantly neoclassical theorists, argue that the financial sector is not the main driver of growth (Robinson, 1952; Lucas, 1988 and Shan, 2005). Among some researchers such as Patrick (1966), the existence of a two-way causal relationship and others such as Singh (1997), Andersen and Tarp (2003), Ayadi et al. (2015) and Ductor and Grechyna (2015), have found an inverse relationship between financial sector development and economic growth.2- THEORETICAL FRAMEWORK Indeed, although most empirical studies in this area confirm the positive impact of financial development on economic growth and show a one-way relationship between financial sector development and the real sector of the economy, but by reviewing the existing literature, it can be inferred that the relationship between these two macroeconomic variables is not definite. According to the existing literature, different results on the causal relationship between these two key variables are affected by the financial development pillars (such as financial stability). Financial stability refers to situations in which financial crises do not generally disrupt the core functions of the financial system. This requires a disciplined government with a stable budget structure that can stabilize the macroeconomy and ultimately provide the conditions for financial stability in the economy.3- METHODOLOGYTherefore, the purpose of this article is to study the effect of budgetary stability indicators in the expenditure sector on the causal relationship between financial development and economic growth. For this purpose, first considering financial development as a multidimensional index and considering the bank-based financial system in Iran, seven indicators of financial development in the banking sector have been used and then the multidimensional index of financial development using principal component analysis technique (PCA) has been calculated. Then, the causal relationship between the multidimensional index of financial development and economic growth has been analyzed using the bi-variate causality technique based on the vector error correction model (VECM) during the period 1357-1397. Finally, the effect of macroeconomic stability budget indicators on the causal relationship between these two variables has been studied using the tri-variate causality test based on the above model.4- RESULTS & DISCUSSIONThe results of our estimation show a one-way causal relationship from financial development to economic growth. The findings also indicate that the causal relationship between financial development and economic growth is affected by budgetary stability indices. Although the ratio of government debt to central bank, government debt to banks and non-bank financial institutions ratio and current expenditure ratio to GDP, have been able to maintain this direct causal relationship, but in other cases the negative significant impact of these indicators on the causal relationship between these two variables has been confirmed.5- CONCLUSION & SUGGESTIONSThe main results of this study show that the performance of government in the expenditure sector (except for three of these indicators) has led to the passivity of the financial sector to the real sector of the economy. Among the important reasons for such results are the short time horizon of governments’ plans, lack of serious efforts to reduce dependence on oil revenues due to the existence of high rents for some stakeholders and the lack of use of new financing methods for the budget deficit.
Mitra Seyedzadeh; Mohamad Hosein Mahdavi adeli; mehdi behname; Taghi Ebrahimi salari
Abstract
Introduction
Achieving economic growth along with improving the distribution of income is always one of the main goals of economic development. In this regard, policy makers are the tools and policies that enhance the growth and distribution of income in a coherent way. On the other hand, it is expected ...
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Introduction
Achieving economic growth along with improving the distribution of income is always one of the main goals of economic development. In this regard, policy makers are the tools and policies that enhance the growth and distribution of income in a coherent way. On the other hand, it is expected that the insurance industry will be able to provide simultaneous access to economic growth and distribution of income, taking into account the function of risk distribution and its compensation, as well as its role in financial development. To test this hypothesis, here has used of the AutoRegressive Distributed Lag (ARDL) approach during the period 1975-2016.
The results showed that the development of the insurance industry could provide simultaneous access to economic growth and income distribution in the short run. But in the long run, it will only lead to economic growth. However, in the long run, it could be reliant on human and physical capital for simultaneous access to economic growth and the distribution of income. Also, based on the error correction model, 88.2% and 68.1% of the non-equilibrium related to the non-oil per capita gross domestic product and Gini coefficient are adjusted in each period, respectively.
Theoretical framework
In The second half of the 20th century onwards, especially since the 1970s, following widening the income gap between the poor and the rich as well as the development in public awareness, it has been emphasized on increasing the quality of life (Mehregan & Salarian, 2008:13). In general, classical and neoclassical economists believe that an uneven distribution of income can have a positive effect on the growth process, while others such as Mirdal and Sen believe that economic growth entails an improvement in income distribution and in fact considers the reduction of inequality necessary (Khodadad Kashi & Heidari, 2008: 153). However, if economic growth and improvement in income distribution are considered two essential components of economic development, there are three strategies for development (Sharifzadegan, 2007: 23-24):
A) Growth then Redistribution (GTR): Accordingly, with economic growth and the creation of vast economic capacities and enlarging the size of the economy, the conditions for employment is automatically provided for all social and income groups, thereby achieving a balanced income distribution.
B) Redilribution then Growth (RTG): In this strategy, comprehensive resources are mainly spent on proper distribution of income, and investment on economic growth and attention to it comes at a lower level, and practically undermines the social capacity of the community. Many experiences and studies show that in the long run, this policy will not achieve a balanced distribution of income or economic growth.
C) Growth with Redistribution (GWR): This strategy emphasizes that income redistribution cannot work without relying on a booming economy. In this strategy, executive policies should be able to work both for economic growth and for income distribution. The development of the insurance industry with the aim of fostering economic growth and improving income distribution can also be considered as one of the policies of this strategy.
Methodology
In this section, the following two econometric models are considered to examine the effects of the development of the insurance industry on economic growth and income distribution:
(1)
(2)
In the empirical studies, the variable level of income is present in the income distribution model, but the present study assumes that the level of income of individuals affected by physical wealth (physical capital or CAPL) and human wealth and capital (skill, expertise, and education level or HCAP). Accordingly, the LHCAP and LCAPL variables are used in the income distribution model instead of the natural logarithm of the income level. The research models for the period 1975-2016 will be estimated using the ARDL method.
Result and discussion
Because dynamic short-run interactions between variables are not considered in OLS method, the use of this method in estimating the long-run relationship does not necessarily yield unbiased estimation. Therefore, it seems reasonable that in such cases those models be considered that have short-term dynamics and thus make the model coefficients more accurately estimated. The ARDL method is a dynamic model that allows to estimate the long-run coefficients of the model with appropriate accuracy in addition to the cointegration test between variables (Nofersti, 2008). The main advantage of using the ARDL method is that regardless of whether the research variables have unit root in levels or some become stationary by one time differentiation, a long-run cointegration relationship between the variables can be obtained.
Conclusion
Achieving high economic growth coupled with improved income distribution has always been a major concern for policymakers in developing countries. In this regard, based on their historical experiences and those of other countries as well as the theoretical and empirical studies, countries prefer the strategy of Growth with Redistribution over GTR strategy or vice versa. On the other hand, insurance is expected to provide simultaneous access to economic growth and income distribution, given its functional role in risk distribution and compensation as well as its role in financial development. In the present study, this hypothesis was tested for the Iranian economy over the period 1975-2016 using the ARDL method.
The results of estimating income distribution model as ARDL (1, 1, 2, 3, 3, 1) showed that insurance penetration factor variables had a negative effect on Gini coefficient immediately and with a one-year lag. Oil revenues also have an impact on the Gini coefficient similar to that of the insurance industry, with its effect initially positive and negative with a one-year lag. But human capital with a two- and three-year lag and physical capital with a three-year lag have a negative effect on the Gini coefficient. Also, the results of estimation of economic growth model as ARDL (2,1,2,2,0) showed that development of insurance industry has positive and immediate effect on economic growth. The variables of human and physical capital have a positive significant lagged and non-lagged effect, and business openness variables have a positive and significant effect on economic growth after one-year lag.
abasali lotfi; shiva jalayer lain
Abstract
In this study with pay attention study of effect of investing own education and training in economic growth of selected development countries like ( Iran, Bulgaria, Peru, Romania, Thailand, Turkey, Melissa, Argentina, Brasilia, chili and Mexico) with the use of panel data of 2015 to 2005
The result ...
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In this study with pay attention study of effect of investing own education and training in economic growth of selected development countries like ( Iran, Bulgaria, Peru, Romania, Thailand, Turkey, Melissa, Argentina, Brasilia, chili and Mexico) with the use of panel data of 2015 to 2005
The result said studying discusses the positive effect of investment in education and training on economic growth of selected development countries. Also low education expenditure and as a result of this regarding the effect of education and training on skilled labor force is the most important factor of levering economic growth in developing countries. Their for it is better with paying attention to increasing young population in developing countries and the needs of these countries to growth and increasing of production and from other side they should pay attention to the increasing of quality of education and training with increasing the expenditures of education training.
Extended Abstract
Introduction
This study investigates the impact of investment in education on economic growth of selected developing countries in the period (1999-2015) using the panel data approach and using education al expenditures data in both primary and secondary levels. Today countries are seeking to improve the quality of their labor force because they believe that more producing is dependent to qualified labor force in this respect, the education represents the most important kind of human investing that predisposing deeper view to production improvement. The most economics believe that the lack of investment in human capital is main cause of low economic growth in developing countries and until the education of these countries does not improve the use of knowledge and the professional skills . the efficiency of labor force and capital remains at a low level and economic growth will be slow and more costly in fact we can say that the physical capital will be more productive only if the country has enough amount of human capital.so to explain the impact of growth on poverty and analyses usefulness of growth, it is necessary to incorporate all the possibilities that enhance well- being of the poor. However, it is really hard to do .so the major capacities, which lead to improve the quality of life, should be giving education. Without any doubt we can say one of the main access growth and economic development is training and education. Even some people believe that the completion of this sectors can complete other sectors. Economic growth in addition to production factors (labor, capital .land) depends on bitterness on quality of workforce’s technical growth better resource allocation and in the last education and training.
Theoretical Framework.
This study investigates the impact of investment in education on economic growth of selected developing countries in the period 1999-2015 using the panel data approach and using education expenditures data in both primary and secondary levels the most important problem in the human capital –economic growth nexus is that why human capital can’t play its role in increasing economic growth in natural resource abundance countries . There are tests for chaos in time series such as correlation dimension .BDS. Methodology. - For the purpose of this study the following question was posed. Whether how the countries are seeking to improve the quality of their labor force because they believe that more producing is dependent to qualified labor force today, countries are seeking to improve the quality of their force because they believe that more producing is dependent to .qualified labor force . In this respect, the education represents the most important kind of human investing that predisposing a deeper view to production improvement. . one approach to look at the impact of growth on education is to compare called pen’s parade to see whether it is pro poor it needs to calculate the growth rate in the mean of the poorest quintile.
Results and Discussion.
The results show that the coefficients of the model variables are significant at the 99percent confidence level. In addition the – statistic indicate significant at of regression. The value of R2 statistic indicates that the model fitting insinuates factory condition. The coefficient of education al expenditures in primary and secondary is positive and is 17 and 21 percent. Respectively. Also the coefficient of capital stock and labor force is positive and significant and is equal to 42 and 27 percent respectively. So we can say that the impact of economic reform policies imitated by the government during that period improved the poverty situation in Iran, this must be by education. We can say that the impact of economic reform policies initiated by the government during that period improved the education situation in Iran and according to the finding s of this paper economic growth is good for poor people.
Nava Ramezanian Bajgiran; Mostafa Salimifar; Ali Akbar Naji Meydani; Mohammad Salimifar
Abstract
According to endogenous growth theories, knowledge, innovation and technology are the most important factors affecting economic growth. There is also the view that economic growth can in turn expand the innovation and inventions by facilitating access to the financial resources for the entrepreneurs. ...
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According to endogenous growth theories, knowledge, innovation and technology are the most important factors affecting economic growth. There is also the view that economic growth can in turn expand the innovation and inventions by facilitating access to the financial resources for the entrepreneurs. In other words, there may be a circular flow between innovation and economic growth. Despite the importance of innovation in the economy, little has been done about this subject, especially in developing countries. Hence, this study was designed to investigate the causal relationship and correlation between innovation and economic growth in selected MENA countries during 1995 to 2011, using a vector error correction model and panel data econometrics. The findings suggest that there is a one-way causal relationship from innovation to economic growth in both the short and long run; however, there is no correlation between innovation and high-tech exports with economic growth. Also, foreign direct investment, gross capital formation and GDP growth rate of the previous periods, unlike the government expenditure variable, have significant positive relationship with economic growth
Mohammad Ali Aboutorabi; Mohammad ali Falahi
Abstract
According to the relationship between financial development and economic growth, the question is whether the type of financial structure (bank-based or market-based financial system) can affect the economic growth? This paper attempts to find an answer to the above mentioned question by surviving the ...
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According to the relationship between financial development and economic growth, the question is whether the type of financial structure (bank-based or market-based financial system) can affect the economic growth? This paper attempts to find an answer to the above mentioned question by surviving the effect of financial development of banks and stock markets in some MENA countries.
The Principal components analysis is used to derive a multilateral index for financial development. Moreover, using panel data econometrics, the role of banking system and stock market in encouraging economic growth in the studied countries is investigated.
The results indicate that the effect of banking system development on the economic growth in these countries is significantly negative while the effect of stock market development in spite of being positive is not statistically significant. These results are contrary to the observed empirical evidences in developed countries which are due to the specific and different characteristics of financial markets in developing countries. Therefore, in the case of these countries, it seems that the planning for “financial development” is essential before any controversy over the type of “financial structure”.
Zahra Nasrollahi; Somayeh Jaafary
Abstract
The effectiue factors on economic growth always have been considered by economic specialists and policy makers. Investment is an example of these factors.
This study examines the relationship between different kind of investment and economic growth in the context of endogenous growth model for target ...
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The effectiue factors on economic growth always have been considered by economic specialists and policy makers. Investment is an example of these factors.
This study examines the relationship between different kind of investment and economic growth in the context of endogenous growth model for target countries of twenty-year vision document over the period of 1990-2010 by using panel data approach.
The results indicate that population growth and the average number of subscribers in the stage of primary school education had a negative and significant impact on economic growth. Also, the effect of domestic investment and the annual inflation rate and export was positive and significant but the effect of exchange rate and FDI was not significant.
Mohmood Hoshmand; Mohammad Daneshnia; Ali Sotudeh; Azam Ghezelbash
Abstract
Always economic growth is one of the most important indicates for economic development. Thus, more production is important and effective way to achieve economic development. In The other hand energy production is considered as the one of the inputs. This study, examines the causality relationship between ...
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Always economic growth is one of the most important indicates for economic development. Thus, more production is important and effective way to achieve economic development. In The other hand energy production is considered as the one of the inputs. This study, examines the causality relationship between energy consumption, economic growth and price among OPEC member countries.
This study uses annual data over the period 1978-2008 by using panel data technique.
Results Our show that a two-way Causality relationship are between the variables as energy consumption and economic growth in the long run ,while the one-way causality relationship is from economic growth to price increase. As well as two-way causality relationship are between the variables energy consumption, economic growth and prices in the short term.
Ashkan Rahimzadeh; Mahmood Hoshmand; Ehsan Fazle Elahi
Abstract
This subject is important for economic decisions that can be effective monetary
policy (Anticipated and Unanticipated Liquidity) in resolve of output shortage?
The aim of this paper analyses the effective factors on economic growth in Iran by
Using time series methods and in (1978-2008) period endogenous ...
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This subject is important for economic decisions that can be effective monetary
policy (Anticipated and Unanticipated Liquidity) in resolve of output shortage?
The aim of this paper analyses the effective factors on economic growth in Iran by
Using time series methods and in (1978-2008) period endogenous growth model.
Results show that the ratio of private investment to real GDP(-1), ratio of
government investment to real GDP(-1), the effective labor growth and anticipated
Liquidity growth have a positive effect on economic growth. But the effect of
unanticipated Liquidity growth on economic growth isn’t significant.
Behzad Salmani; Maryam Fattahi
Abstract
Openness and its relation with economic growth is one of the controversial issues in economics. Recent years, various mechanisms of openness influencing on economic growth is considered. One of the mentioned mechanisms is the impact of openness on economic growth through economic growth in tradingpartners ...
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Openness and its relation with economic growth is one of the controversial issues in economics. Recent years, various mechanisms of openness influencing on economic growth is considered. One of the mentioned mechanisms is the impact of openness on economic growth through economic growth in tradingpartners countries.
By Using an unbalanced panel data analysis, this study evaluates the impact of trading partners' economic growth on economic growth of the member countries of the Organization of Petroleum Exporting Countries (OPEC) for the period of 1960-2004.
The results indicate that there is statistically positive and significant effect of trading partners’ economic growth, investment, human capital and opennesson economic growth in OPEC member countries and there is negative effect among initial GDP, inflation, government expenditure andeconomic growth in OPEC member countries. The results are robust and are not sensitive where other determinants of economic growth were added to the model. This is also true in different samples.
Mehdi Behname
Abstract
Nevertheless, the extraction and consumption of coal aren’t comfortable as well as oil and gas but according to increasing oil and gas prices we can do a study for the ability of substitution of oil, gas and coal.
This paper investigates the causal relationship between coal consumption, GDP, capital ...
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Nevertheless, the extraction and consumption of coal aren’t comfortable as well as oil and gas but according to increasing oil and gas prices we can do a study for the ability of substitution of oil, gas and coal.
This paper investigates the causal relationship between coal consumption, GDP, capital information and unemployment in Iran for the period 1350 -1386. We apply KPSS unit root test for surveying of stationarity of the variables. This test shows the variables are stationary at the first difference. Since, the variables are I(1) we apply Johanson (1988) co-integration test for studying of long run relationship between the variables.
CUMUSUM and CUMUSUMSQ tests show that the variables are state. The Granger causality test shows a bi-directional causality between capital information and GDP, it means economic growth and capital information strengthens each other in long and short run. Capital increasing lead to unemployment augmentation. On the other hand, coal consumption isn't cause of economic growth; but the inverse is true.
Abolfazl Shahabadi
Abstract
Recent theories of economic growth treat commercially oriented innovation in response to economic incentives as a major engine of technological progress and Economic growth. Therefore this study tries to determine rate of return of Physical investment and R&D expenditure on economic Iran in during 1968-2009. ...
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Recent theories of economic growth treat commercially oriented innovation in response to economic incentives as a major engine of technological progress and Economic growth. Therefore this study tries to determine rate of return of Physical investment and R&D expenditure on economic Iran in during 1968-2009. Finding provided empirical evidence that Labor, Physical investment and R&D expenditure have important and significant effects on economic growth performance. Our estimates suggest that the coefficient of physical investment on economic growth is larger than the of R&D expenditure. As compared with impact of physical capital, the impact of R&D investment on economic growth in Iran is not as strong as, through the lower estimated elasticity values. These results indicate rate of return R&D investment in economic of Iran is much higher than those of physical investment which explains the relatively active R&D investment as compared with physical investment during this period. The short run of internal the average rate of return of physical investment and R&D investment estimated are .47 and 3.95 respectively. The long run of internal moreover the average rate of return of physical investment and R&D investments estimated are.84 and 66.2 respectively.
Mahmood Hoshmand; Mohammad Danesh nia
Abstract
Always, financial sector has a central role in development and economic growth. Hence the relationship between financial development and economic growth appears to be essential. This article examines the impact of financial development on economic growth, with consider other variables affecting ...
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Always, financial sector has a central role in development and economic growth. Hence the relationship between financial development and economic growth appears to be essential. This article examines the impact of financial development on economic growth, with consider other variables affecting the economic growth, such as ratio of commercial, domestic investment and interest rate.
This study estimates a relationship between variables within a Auto regressive Distributed Lag framework over the periods .
The results of this study represents a significant and positive impact of financial development on economic growth. Also domestic investment has a positive and significant impact on economic growth, and Interest rate has a significant negative impact on economic growth.
Seyed Komail Tayebi
Abstract
The objective of this research is to explore the effect of international outsourcing on economic growth in Asia-Pacific countries. Accordingly, a panel regression model based on Soderbom and Teal (2003) is estimated using data of the considered countries over the period 1995-2006. In addition to international ...
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The objective of this research is to explore the effect of international outsourcing on economic growth in Asia-Pacific countries. Accordingly, a panel regression model based on Soderbom and Teal (2003) is estimated using data of the considered countries over the period 1995-2006. In addition to international outsourcing, the model includes human capital, labor force and physical capital as the other exploring variables. Empirical results show that human capital has a significant and positive effect on economic growth of Asia- Pacific countries. Additionally, the cross effect of international outsourcing and human capital on growth has been statistically significant. Hence, investing in human resources, skill promotion and technology improvement are the main keys of trade expansion and economic growth in the countries under consideration.
Mahdi Safdari; Farshid Pourshahabi
Abstract
In this study, the relationship between inflation and economic growth of Iran is conciliated with a perspective on uncertainty of inflation. We use a Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model that make possible this advantage that Conditional variance of error term changes ...
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In this study, the relationship between inflation and economic growth of Iran is conciliated with a perspective on uncertainty of inflation. We use a Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model that make possible this advantage that Conditional variance of error term changes along the time, also, Vector Error Correction model (VECM) is stable. For surveying the co-integration relation between variables of model, we use Johansen Co-integration test. The source of used data is Central Bank of Iran from 1971 to 2007. The cause of this selection is that the impact of inflation on Iran economy started from 1971 with a palpable effect. For analysis of relation between variables of model, Impulse Response (IR) and Variance Decomposition (VD), that are so useful in Vector Autoregressive (VAR) models, are used. For this study the Conditional variable of inflation that is lead to uncertainty of inflation and it redound to decrease of investment of private sector of Iran economy and this had a long run negative effect on economic growth of Iran.
Ashkan Rahimzadeh
Abstract
The theoretical base of this paper is the economic growth model that completed with capital stocks (private and public) and human capital. At the first, hypothesis test about constant returns to scale is studied, and then the related variables with macroeconomic policies are added to the model. The results ...
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The theoretical base of this paper is the economic growth model that completed with capital stocks (private and public) and human capital. At the first, hypothesis test about constant returns to scale is studied, and then the related variables with macroeconomic policies are added to the model. The results show that 1) the aggregate production function exhibits increasing returns to scale, 2) private investment and public investment and human capital have a positive effects on economic growth, 3) fiscal policy, import of goods and services growth with a two-period lag and the share of the oil sector value added in total GDP have a positive effect on economic growth. 4) Liquidity growth, tax growth and exports of non oil goods growth have no meaningful effect on economic growth, and 5) Liberalization of trading has a negative effect on economic growth.
Abbas Shkeri; Taghi Ebrahimi Salari
Abstract
This paper using endogenous growth models based on research and development, has investigated two economic relations in three groups of countries included developed countries, developing countries and a mixed group of both mentioned ones. At first, the effects of R&D activities on patent growth have ...
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This paper using endogenous growth models based on research and development, has investigated two economic relations in three groups of countries included developed countries, developing countries and a mixed group of both mentioned ones. At first, the effects of R&D activities on patent growth have examined and then the relation between volume of patent and growth rate in these groups has surveyed. One of the problems for estimating endogenous growth model based on R&D is finding a suitable representative for qualitative variables, we use gross R&D expenditures as a criterion for measurement of endogenous investment for changing the technology. Useful patent is a proxy for growth rate of patent result in investment in R&D field. In addition, growth of total factor productivity is the proxy for changing in technology and the growth rate of GDP as a criterion for economic growth has taken place. Results of this paper show that investment in R&D activities has significant and positive effect on patent flow in both developed and developing countries and also this effect is greater in developing countries than developed countries. Moreover in developing countries, effect of growth in R&D expenditure on growth of patent flow is 6 times of developed countries. The other finding is that in developing countries, effect of increasing patent on additional GDP is greater than the corresponding factors in developed countries. And finally, investment in R&D activities has significant and positive effect on growth of gross national output in both groups of countries.
Zahra Nasrollahi; Marzieh Ghafari Golak
Abstract
The Environmental Kuznets Curve (EKC) hypothesis posits an inverted U relationship between environmental pollutants and per capita income. Recent researches have examined this hypothesis for different pollutants in different countries. However, so far a few number of EKC studies have been carried out ...
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The Environmental Kuznets Curve (EKC) hypothesis posits an inverted U relationship between environmental pollutants and per capita income. Recent researches have examined this hypothesis for different pollutants in different countries. However, so far a few number of EKC studies have been carried out in Iran. This might be due to the lack of reliable environmental data in this field.
The aim of the present study is to investigate the relationship between environmental pollutants and economic growth in Iran. Therefore, during 4 years (2002-2006) the relationship between per capita income and per capita pollutant emission for three atmospheric pollutants (CO, SO2 and NOX) was examined by using panel data and Iran's provincial data. The results show that the two pollutants CO and NOX are N-shaped and for SO2 a U-shaped was found.
