Jafar Kheirkhahan; Hamid Reza Baradaran Shoraka
Volume 5, Issue 16 , October 2003, , Pages 101-132
Abstract
The low rate of economic growth in resource-abundant countries remains as a paradox for economists and socio-political scientists. There have been various explanations for this phenomena.One of the latest explanations considers the under-development of legal institutions as the major factor، which is ...
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The low rate of economic growth in resource-abundant countries remains as a paradox for economists and socio-political scientists. There have been various explanations for this phenomena.One of the latest explanations considers the under-development of legal institutions as the major factor، which is indicated by non-cooperative and rent seeking behavior of the interest groups، leading to serious economic difficulties.This paper examines the case of oil boom in the context of modern approaches of political economy. The saving rate reaction is explained within the conflicting positions of interest groups in an oil exporting economy. The "Varacity Effect" is introduced and examined، indicating a counter cyclical behavior for the saving rate in a developing economy، where the rise in aggregate consumption may exceed the effects of resource boom.An econometric analysis of oil exporting economies indicates the experience of varacity effect in all OPEC members after the oil boom.In conclusion، it is argued that initiation of certain institutional reforms are crucial for improving the savings behavior and overall performance of resource-based economies.
Farkhondeh Jabal Ameli; Hamidreza Baradaran Shoraka
Volume 5, Issue 15 , July 2003, , Pages 121-141
Abstract
Journal: IRANIAN ECONOMIC RESEARCH Summer 2003 , Volume 5 , Number 15; Page(s) 121 To 141. Paper: REAL EXCHANGE RATE VARIABILITY AND THE CHOICE OF EXCHANGE RATE REGIME IN IRAN ...
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Journal: IRANIAN ECONOMIC RESEARCH Summer 2003 , Volume 5 , Number 15; Page(s) 121 To 141. Paper: REAL EXCHANGE RATE VARIABILITY AND THE CHOICE OF EXCHANGE RATE REGIME IN IRAN Author(s): JABAL AMELI FARKHONDEH*, BARADARAN SHORAKA H.R. * ALLAMEH TABATABAIE UNIVERSITY Abstract: This paper intends to draw the relation between real exchange rate variability and the choice of exchange rate regime. The hypothesis was tested by estimating a simultaneous Limited-Dependent variable model with data from a time series during 1973-1996. The paper examines a number of exogenous determinants of exchange rate variability and the choice of exchange rate regime.Our results indicate that: 1) The more opening in Iran's economy, the greater in REER variability, 2) An increase in domestic monetary shocks will result in greater REER variability, 3) REER variability decreases in the fixed exchange rate regime, 4) As an openness increases, the choice of the floating regime is more suitable, 5) The greater REER variability, the more likely a fixed exchange rate.
