Research Paper
Mehdi Razavi; Rassam Moshrefi
Volume 6, Issue 18 , April 2004, Pages 1-37
Abstract
Unemployment of factors of production leads to lost opportunity costs, which undermines economic growth. On the other hand, labor employment, among other factors of production, can have significant economic, cultural, political as well as social impacts. During the first two decades after ...
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Unemployment of factors of production leads to lost opportunity costs, which undermines economic growth. On the other hand, labor employment, among other factors of production, can have significant economic, cultural, political as well as social impacts. During the first two decades after revolution, Iran experienced high population growth rate. Jobs were not created in proportion to increased population growth. As such, jobs were scarce, and high unemployment rate were conducive to bring about social and economic problems. To remedy these problems, policy makers are constantly seeking to understand and find practical solutions for unemployment in Iran. This article provides a dynamic analysis of labor employment behavior in Iran. In this context, a system methodology has been applied, and labor behavior in Iran is simulated. The final result of utilizing Okun’s law in Iran shows that any 2.5 percent increase in GDP, more than its potential growth rate, will lead to 2.8 percent decrease in unemployment rate.
Research Paper
Gholamreza Keshavarz Haddad
Volume 6, Issue 18 , April 2004, Pages 39-56
Abstract
Creating job opportunities for job seekers, who experience a growth of more than half a million per year, has become a crucial problem for Iranian policy makers. Estimations depict that on average the growth rate of labor will amount to 3.3 percent during 1381-1385. Also, continuation of current ...
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Creating job opportunities for job seekers, who experience a growth of more than half a million per year, has become a crucial problem for Iranian policy makers. Estimations depict that on average the growth rate of labor will amount to 3.3 percent during 1381-1385. Also, continuation of current economic situations will result in a 21 percent unemployment rate. The purpose of this paper is to identify those economic sectors whose potentials in job creation are higher than others. Our analytical framework is Input-Output technique which consists of backward linkage and employment creation elasticity. Furthermore, the cost of creating a full-time job in terms of final demand is calculated. According to backward linkage, findings indicate that Social and Religious Services, Agriculture, Business, Education Services sectors are ranked top and of the lowest cost job creation, respectively. The highest cost of creating a full-time job belongs to the R&D sector with the amount of 184.8 million Rials, and the lowest to the Social Services with the amount of 9.14 million Rials.
Research Paper
Zahra Karimi Moghari
Volume 6, Issue 18 , April 2004, Pages 57-88
Abstract
Afghan refugees are two fifths of total refugees all around the world, who are mainly living in Pakistan and Iran. Relentless wars, devastated economy and drought have not only discouraged the Afghan refugees from returning home, but also created new refugees during recent years. ...
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Afghan refugees are two fifths of total refugees all around the world, who are mainly living in Pakistan and Iran. Relentless wars, devastated economy and drought have not only discouraged the Afghan refugees from returning home, but also created new refugees during recent years. Less than 5 percent of all Afghan refugees in Iran live in refugee camps, and the rest are living in cities and villages among Iranian people, and provide their needs by working. Almost all Afghan labourers are working illegally in Iran and do not have work permission. They are unskilled and considered as cheap workers, accepting any low paying jobs. Which were formerly taken up by unskilled Iranian workers who migrated from rural areas. Because of the lack of reliable data, investigating about the exact effects of the presence of Afghan refugees in the Iranian labour market is not easy, but we can see the overall impacts on wages and unemployment rate. Afghan refugees have increased the supply of labour force in Iran for more than 2 decades. So wage increase for low skill workers has been very slow in Iran, specially in construction sector, where Afghan workers have a large share. For estimating the effects of Afghan immigrants on the unemployment rate, regression equations have been estimated. The results show that Afghan workers have been attracted to the prosperous provinces where unskilled workers were most wanted, such as Tehran, Isfahan, Khorasan. As the workers can move around easily in the country, the presence of Afghan workers in certain provinces, has not caused higher unemployment rate neither in cities nor in villages of these provinces, but unemployment rate in the country has been raised. If Afghan immigrants leave Iran, unemployment rate will decrease and the wage rate for unskilled workers will rise considerably.
Research Paper
Morteza Ezzati
Volume 6, Issue 18 , April 2004, Pages 89-110
Abstract
The empirical methods have special position in methodology of economics. One of the important problems in Islamic economic methodology is the possibility of finding a typical example for empirical analysis in Islamic economic system. The paper attempts to analyze whether the economic systems in Moslem ...
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The empirical methods have special position in methodology of economics. One of the important problems in Islamic economic methodology is the possibility of finding a typical example for empirical analysis in Islamic economic system. The paper attempts to analyze whether the economic systems in Moslem communities are relevent cases for studying the Islamic economic system. After reviewing the literature, and defining the concepts of Islamic system and economic system, we discuss the existing argument for existance or absence of these typical examples. Using the accepted concepts, the subject was analyzed rigorously. It is concluded that in the first 40 yaers of Islamic era, the Islamic economic system was dominant. However, in the other periods, there only existed some Islamic economic activities by governments which could be used as cases of Islamic economic system.
Research Paper
Kazem Yavari; Hossein Ghaderi
Volume 6, Issue 18 , April 2004, Pages 111-140
Abstract
The purpose of this paper is to find out simultaneously the determinants of the parallel market premium, real exchange rate and price level by using a macroeconomic model. Using the 3SLS regression technique, the paper shows that money, expected inflation rate, net return of foreign exchange, investment, ...
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The purpose of this paper is to find out simultaneously the determinants of the parallel market premium, real exchange rate and price level by using a macroeconomic model. Using the 3SLS regression technique, the paper shows that money, expected inflation rate, net return of foreign exchange, investment, public budget and oil revenues have significant effects on the parallel market premium, real exchange rate and price level. Our simulation results show that devaluation of domestic currency raises prices. It also lowers the premium in the short run but not it the long run. The nominal devaluation leads to real devaluation in the first year but will cause the real exchange rate to be overvalued at the end. This policy will also lower output and raise domestic currency denominated oil revenues and official foreign reserves. An important implication of the empirical results of the paper is that government has to maintain discipline in fiscal and monetary policy to be able to stabilize the parallel market premium, real exchange rate and prices.
Research Paper
Ali Hossein Samadi
Volume 6, Issue 18 , April 2004, Pages 141-155
Abstract
In this paper, we decompose multiplicatively indices of value instability of agricultural exportable and importable products into price instability, quantity instability, and interactive instability. Indices of Iran’s agricultural trade instability correspond to 26 exportable and 22 importable. ...
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In this paper, we decompose multiplicatively indices of value instability of agricultural exportable and importable products into price instability, quantity instability, and interactive instability. Indices of Iran’s agricultural trade instability correspond to 26 exportable and 22 importable. The period of analysis runs from 1981-1999. The main results of this paper are: - Iran’s agricultural exports and imports both vary in degree of instability. - In the cases of several exportable and importable , quantity instability has been the determining factor of value instability - On the average, exports have been subject to relatively higher price and value instability than imports, but imports have been subject to higher quantity instability than exports. The study also makes some recommendations to reduce instabilities and to increase competitiveness in Iran.
Research Paper
Khosrow Piraee,; Hosein Kazemi
Volume 6, Issue 18 , April 2004, Pages 157-178
Abstract
The main objective in this paper is twofold: measuring technical efficiency and indicating its determinant factors for the Iranian insurance companies. We utilize stochastic frontier function and two alternative models: the “ error component frontier ”model proposed by Battes and Coelli (1992) ...
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The main objective in this paper is twofold: measuring technical efficiency and indicating its determinant factors for the Iranian insurance companies. We utilize stochastic frontier function and two alternative models: the “ error component frontier ”model proposed by Battes and Coelli (1992) and ”technical inefficiency effect” model proposed by Battes and Coelli(1995) . the parameters of both models are estimated by maximum likelihood method. Earned premium and investment income selected as outputs of insurance industry. Panel data of Iran, Asia, Alborz and Dana –the four insurance companies-over 10 years,(1922-2001); used to measure their technical efficiencies. The findings of this paper show that technical efficiency is equal to 79.30% in error component model and 81.71% in technical inefficiency model from earned premium point of view and 58.51% in error component model and 59.64% in technical inefficiency model from investment income point of view. Further results indicated that technical efficiency has direct relation with respect ratio of the number of branches located in Tehran, total assets, ratio of life insurance premium, ratio of non- life insurance premium and inverse relation with respect to ratio of employees qualified with bachelor’s degree.
