Mahdie Rezagholizade; Malihe keyvanpor
Abstract
One important aspect of financial development in oil-exporting countries is how to allocate oil income during periods of oil price fluctuations. Financial development in these countries affects their current accounts in two ways: directly through the impact on savings and investment and indirectly ...
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One important aspect of financial development in oil-exporting countries is how to allocate oil income during periods of oil price fluctuations. Financial development in these countries affects their current accounts in two ways: directly through the impact on savings and investment and indirectly through the impact on the relationship of oil prices and current account. Considering the importance of this issue, this study investigates the role of financial development in the relationship between oil price and current account using a nonlinear Smooth Transition Regression model (STR) during the period of 1978-2016 in Iran. Based on the relevant tests, it is concluded that there is a nonlinear relationship between the current account and world oil price. Financial development is chosen as the best transition variable and the nonlinear Smooth Transition Regression model with a two-regime logistic transition function (LSTR1) has been chosen as the best model for this relationship. The results of estimation show that the oil price appearing in the form of a two-regime structure with a threshold level (1.5386) in the first regime (when financial development is less than it’s threshold value (1.5386)) has a positive and significant effect on Iran’s current account; The intensity of this positive effect increases by crossing the threshold level entering to the second regime (when financial development is higher than its threshold value (1.5386).
Mahdieh Rezagholizadeh; Amirhossein Alami
Abstract
Tax evasion constitutes a major component of underground activities and development of financial sector -as one of the most important sectors in every country can affect its size. Considering the importance of this issue, this study tries to investigate the relationship between financial development ...
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Tax evasion constitutes a major component of underground activities and development of financial sector -as one of the most important sectors in every country can affect its size. Considering the importance of this issue, this study tries to investigate the relationship between financial development and tax evasion and provide an answer to this question: can financial development in Iran reduce tax evasion? This study estimates the volume of tax evasion in Iran by using multiple-indicators -multiple causes (MIMIC) model and maximum likelihood method in AMOS software, for the period of 1978-2016. Then the effect of financial development on tax evasion is investigated by using ARDL Bounds test method. The results show that despite some fluctuations, volume of tax evasion has been generally increasing over the underlying period. The results of the estimation of the effect of financial development on the tax evasion indicate that financial development in Iran in long-run and short-run (with one lag) has a negative and significant impact on the tax evasion. Also, findings show that an increase in inflation, increases tax evasion and increase in GDP reduces tax evasion.
Majid Aghaei; Mahdieh Rezaghoizadeh
Abstract
The purpose of this study is to measure the effect of consumption of different kinds of energy carriers in Iran, which caused poverty and inequality in the process of economic, social and cultural development of countries. For this purpose, we use annual data from 1984 to 2010 through a simultaneous ...
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The purpose of this study is to measure the effect of consumption of different kinds of energy carriers in Iran, which caused poverty and inequality in the process of economic, social and cultural development of countries. For this purpose, we use annual data from 1984 to 2010 through a simultaneous equations model using Two-Stage Least Square (2SLS) and Three-Stage Least Square (3SLS) estimators. The results indicate that the effect of various energy carriers on inequality is different. Gasoline consumption leads to inequality enhancement but natural gas and electricity consumption lead to inequality reduction. Fuel oil, kerosene and gasoil have the different effects on inequality due to different indexes of inequality. On the other hand, energy carrier consumption leads to poverty reduction and natural gas and electricity are more effective to reduce poverty. Thus, the direct effect of energy consumption on poverty is confirmed. Totally, the results indicate that the indirect effect of all energy carriers on poverty trough inequality reduction is not confirmed, though all energy carriers on economic growth has a positive effect, and the indirect effect of economic growth on poverty reduction is confirmed.
