Economic Development
Sayed Amin Mansouri; Seyed Morteza Afghah; Behrouz Sadeghi Amroabadi; Hassan Farazmand; Yaghoub Andayesh; Ali Boudaghi
Abstract
One of the significant challenges in regional development is examining the role of local governments and their relationship with large local companies in income distribution. This challenge is particularly pertinent when large companies have national objectives, and most of their production capacity ...
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One of the significant challenges in regional development is examining the role of local governments and their relationship with large local companies in income distribution. This challenge is particularly pertinent when large companies have national objectives, and most of their production capacity is capital-intensive and knowledge-intensive, but their operational area is locally focused on the user. The present research aimed to explore the role of the government and large local companies in income distribution. Khuzestan Province was chosen due to its unique characteristics in this regard. The study covered the period from 2006 to 2020, analyzing seasonal data using the generalized method of moments (GMM). The findings indicate that the government’s current and construction expenditures in the province have a negative and significant effect on the urban Gini coefficient. In contrast, the value-added variable of large industrial companies in the province has a positive and significant effect on the urban Gini coefficient. The results suggest that careful planning and coordination between large companies and provincial managers should be sought by adopting policies such as increasing local employment and training local workforce, thereby reducing dissatisfaction and income inequality in the province.IntroductionOne of the significant challenges in regional development is examining the role of local governments and their relationship with large local companies in income distribution. This challenge is particularly pertinent when large companies have national objectives, and most of their production capacity is capital-intensive and knowledge-intensive, but their operational area is locally focused on the user. Based on the available evidence, large companies in Khuzestan Province (e.g., oil, petrochemical, and steel companies), which are part of national entities, generate national income. However, the local population’s share of this income is small. Meanwhile, private companies in Khuzestan Province are under pressure to pay taxes. This has led to the perception among the people in the province that the presence of these national entities has resulted in a low local share of their income. In other words, the income generated by these companies flows out of the province, leaving the local population with a minimal share. In this respect, the present research aimed to explore the role of the government and large local companies in income distribution in Khuzestan Province during 2006–2020. Materials and MethodsThe primary research question is whether the government’s financial policies and the presence of large companies in Khuzestan Province significantly affect income distribution within the province. Using the generalized method of moments (GMM), the study relied on the seasonal data from 2006 to 2020 to address the research question. Results and DiscussionThe results indicate that government’s current and construction expenditures in the province have a negative and significant effect on the urban Gini coefficient. Conversely, the value-added variable of large industrial companies in the province has a positive and significant effect on the urban Gini coefficient. This suggests that the presence of large industrial companies has not only failed to reduce inequality but actually increased urban inequality in the province. The findings also show that both types of user investment and Berber knowledge are effective in reducing the urban Gini coefficient in Khuzestan Province. Additionally, the study found that air pollution in the province has a positive and significant effect on the urban Gini coefficient. This implies that increased pollution, caused by industrial activities, disproportionately impacts the lower classes as the benefits of these activities do not reach the lower-income population. Instead, these polluting industries impose negative external effects on the local population while contributing to increased inequality by introducing imbalances considering payments to national production factors. ConclusionAccording to the research results, the presence of large companies in the province has neither generated local benefits nor reduced income inequality in the urban sector. It is thus recommended that careful planning and coordination between large companies and provincial managers should be sought by adopting policies such as increasing local employment and training local workforce, thereby reducing dissatisfaction and income inequality in the province.AcknowledgementsWe express our gratitude to the Vice-Chancellor for Research Affairs of Shahid Chamran University of Ahvaz for his assistance in conducting this research.Conflict of interestThe authors declare no conflict of interest in publishing this articleFundingThis study is part of a research project related to industry between Shahid Chamran University of Ahvaz and the Management and Planning Organization of Khuzestan Province, financially supported by contract number 100z1310004 (971875).
Financial Economics
Vahid Taghinezhadomran; Zahra Mila Elmi; Fatemeh Zahra Husseinpor
Abstract
Banks have a considerable ability to use financial leverage compared to non-bank firms to earn high profits and returns with support of the central bank as a last resort lender. The ability of banks to use leverage depends on internal characteristics such as size, profitability and risk, as well as environmental ...
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Banks have a considerable ability to use financial leverage compared to non-bank firms to earn high profits and returns with support of the central bank as a last resort lender. The ability of banks to use leverage depends on internal characteristics such as size, profitability and risk, as well as environmental variables such as inflation, which affect the Business cycle. This study aims to find the effects of these variables on the dependency of banks on financial leverage in recession and booms periods. To this end, Hodrick-Prescott filter was used to extract business cycles. The Generalized Method of Moments (GMM) based on the data from 18 Iranian banks during 2005-2018 was used in order to test the research hypotheses. The results show that larger banks are more inclined to leverage and economic conditions have no significant effect on this desire. Banks with better financial stability and less risk rely on lower financial leverage in times of economic prosperity. The effect of profitability criteria on the leverage of banks depends on economic conditions. In times of economic prosperity, banks with better profitability have a higher incentive to leverage. Also, how the inflation affects the financial leverage of banks depends on the economic conditions. During an economic boom, inflation encourages more reliance on leverage in banks.
zahra Karimi Moughari; Mehrdad Maghsoodloo; Zahra(Mila) Elmi
Abstract
One of the most effective ways of realizing social equity is to provide equal opportunities for individuals to access education and to achieve educational equity. An important aspect of educational equity appears in the labor market and by the end of the education. The processes of finding a job ...
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One of the most effective ways of realizing social equity is to provide equal opportunities for individuals to access education and to achieve educational equity. An important aspect of educational equity appears in the labor market and by the end of the education. The processes of finding a job in the labor market and wage determination guide the efforts of individuals for gaining effective education. If the labor market does not send appropriate signals to the education system, the allocation of resources in the education system would not be correct. In this paper, the relationship between educational inequality and employment rates in Iranian provinces is examined by using Generalized Momentum Method (GMM) for a panel data of 28 provinces during 1380 - 1392. The employment rates and Gini coefficients of education are calculated from the income-expenditure data, published by the Statistical Centre of Iran. The results of this study show that average educational Gini coefficient, educational inequality, in deprived provinces is higher than rich provinces; and there is a negative and significant relationship between employment rate and educational inequality. In all provinces the employment rates has increased while the Gini coefficients has decreased.
Parvaneh Salatin; Samaneh Mohammadi
Abstract
The main objective of this study is to evaluate the effectiveness of the most important factors affecting the health expenditures as an indicator of health in the provinces of Iran by using a panel data model. The results of hypothesis testing using fixed effects and GMM for the period 1390-1380 show ...
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The main objective of this study is to evaluate the effectiveness of the most important factors affecting the health expenditures as an indicator of health in the provinces of Iran by using a panel data model. The results of hypothesis testing using fixed effects and GMM for the period 1390-1380 show that there is a positive and significant relationship among health expenditure (as an indicator for health ) and the number of students of university, higher education (as an indicator for human capital), per capita income, and the number of main insured covered by the social security organizations on the basis of voluntary insurance.
Reza Mohseni
Volume 7, Issue 25 , February 2006, , Pages 127-152
Abstract
This paper analyses the impact of reduction of tariff and non-tariff barriers on the imports of selected developing countries, utilizing dynamic panel data technique. The results indicate that Income and price elasticities are strongly statistically significant and reduction of import duties and ...
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This paper analyses the impact of reduction of tariff and non-tariff barriers on the imports of selected developing countries, utilizing dynamic panel data technique. The results indicate that Income and price elasticities are strongly statistically significant and reduction of import duties and increase of trade liberalization degree have a positive and significant effect on import growth. This effect increases import growth between 100 to 300 percent in all countries. Also, we test if the income elasticity of import demand changes with trade liberalization, and also if the price elasticity changes as the ability to substitute domestic production for imports becomes easier. The assumption is that trade liberalization has a significant impact not only on the growth of imports, but also on their sensitivity to income and price variations.
