Economic Development
mohaddaseh soleimani; Aliasghar Banouei; Esfandiar Jahangard; teymor mohamadi
Abstract
Innovation and technological changes spans various geographical locations over the time.The inability of Input-Output models in measuring the effects of technology changes, caused by new innovations, is known as a weakness of these models. In this article, we show how this weakness can be addressed by ...
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Innovation and technological changes spans various geographical locations over the time.The inability of Input-Output models in measuring the effects of technology changes, caused by new innovations, is known as a weakness of these models. In this article, we show how this weakness can be addressed by employing the fields of influence method. Technology changes are modeled as changes of one or more elements in the direct coefficients matrix and the impact of such changes in the Leontief matrix is measured. Here is the main question: Does the technology changes only impact a limited sector or the entire economical system? In other words, how would technology changes in one sector impact other sectors of economic system? The main goal in this paper is proposing a method which can measure how different sectors get impacted by changes at different levels such as one element, all elements, one row or one column and then evaluates the importance of different sectors. To this aim, Iran’s Input-Output tables over the period of 1365-1395 with the fixed price of Iran’s statistics center in 1390 is used. The impact of technology changes on each sector is measured using Leontief’s inverse matrix and the column field of influence approach (CFOI) approach. Our findings indicate that over this period of time, technological changes in the industry and then construction sectors have the most influence and the mining sector has the least influence on other sectors of Iran’s economy.
Esfandiyar Jahangard
Abstract
The Iranian economy suffers from low economic growth despite having access to enormous reserves of natural resources. The role of investment rate as the driving force of economic growth has been the focus of much debate among macroeconomists. This raises an important question: Why does growth in Iran ...
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The Iranian economy suffers from low economic growth despite having access to enormous reserves of natural resources. The role of investment rate as the driving force of economic growth has been the focus of much debate among macroeconomists. This raises an important question: Why does growth in Iran remain low despite of high investment? One way to answer this question is to look at the relationship between economic structures and performances. Contributing to the literature in the field, we incorporate intermediate goods in our calculation of inter sectoral resource allocation for the purposes of production analysis over the period of 1973-2011. Five national input-output tables for the years of 1973, 1986, 1991, 2001 and 2011 consisting of 19 sectors in current prices have been used in this study. The results showed that the average production multiplier is 1.8. The overall findings revealed that the structural transformation has shifted from agriculture to some industries and service sectors which differs from the experiences of developing and developed countries.
Zahra Moshfegh; Golrooz Ramezandeh Valis; Afsaneh Sherkat; Mohadeseh Soleimani; Ali Asghar Banouei
Volume 19, Issue 58 , April 2014, , Pages 117-152
Abstract
There are several methods of updating input-output coefficient matrix in last six decades, but there are still issues about RAS and adjusted RAS methods which have been focus of input-output analysts in recent years. One challenging issue is the relationship between more exogenous, superior or additional ...
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There are several methods of updating input-output coefficient matrix in last six decades, but there are still issues about RAS and adjusted RAS methods which have been focus of input-output analysts in recent years. One challenging issue is the relationship between more exogenous, superior or additional information of target year in adjusted RAS method and its statistical reduction error relative to conventional RAS method in updating the input-output coefficient matrix. Some analysts observe the positive relationship, whereas others by focusing on the nature and criteria of exogenous information opine that using more exogenous information in the adjusted RAS will not necessarily reduce the statistical errors compared to conventional RAS method. The existing evidence in Iran is around the findings of the positive relationship which has in fact lead to the common belief between compilers and also users of table in Iran. In this article we attempt to examine this issue by means of two symmetric input-output tables of the years 1996 & 2001 by posing two main questions. The first question: Is there any relationship between more exogenous information in adjusted RAS method compared to conventional RAS method in reducing statistical errors? Second question: Do the nature and criteria of more exogenous information, irrespective of more or less cells; have an influence on increase or reduction of statistical errors in updating coefficients? Our findings do not support the existing common belief among the compilers and users of Input-Output Table in Iran and reveal the followings: 1- The adjusted RAS method, in some of exogenous information, is not preferable to conventional RAS method. 2: Measurement of credibility of updated coefficients depends on choice of the nature and criteria of exogenous information, and 3: Using more exogenous information of the target year would not necessarily lead to decrease of statistical errors in the updated coefficients.
Asghar Shahmoradi; Mohsen Mehrara; Navid Fayazi
Volume 14, Issue 42 , April 2010, , Pages 1-24
Abstract
This paper investigates the impacts of an energy price increase on price levels, income distribution, consumer’ welfare and government expenditure. In doing so, it uses a static Input-Output approach in the context of the input-output table for Islamic Republic of Iran for the year 2004. An exogenous ...
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This paper investigates the impacts of an energy price increase on price levels, income distribution, consumer’ welfare and government expenditure. In doing so, it uses a static Input-Output approach in the context of the input-output table for Islamic Republic of Iran for the year 2004. An exogenous increase in energy prices, due to reduction in energy subsidies, increases the production costs and consequently increases the general price level. Such price increases, result in a consumer’ welfare reduction and affect the government expenditures. It defines a set of indirect utility functions, which then used to measure the change in welfare of households. A set of constant coefficients used to measure the increase in households’ budget and change in government expenditures. Two distinct scenarios defined for energy prices increase, the first is a once-for-all 100% increase in those prices, and the second scenario assumes a once-for-all complete elimination of energy subsidies in Iran.
Ali Asghar Banooi; Mohammad Jolodari Mamaghani; Seyed Iman Azad
Volume 13, Issue 41 , February 2010, , Pages 53-77
Abstract
Using Conventional methods of Chenery-Watanabe and Rasmussen in inter industry linkages hae three limitations: Supply and demand sectors cannot be distinguished, distinction between balanced and unbalanced growth strategies are not clear and the measurement of inter industry linkages mainly depends on ...
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Using Conventional methods of Chenery-Watanabe and Rasmussen in inter industry linkages hae three limitations: Supply and demand sectors cannot be distinguished, distinction between balanced and unbalanced growth strategies are not clear and the measurement of inter industry linkages mainly depends on the size of sectoral intermediate demands. In this paper, we introduce an eigenvector method to overcome those limitations. We use the 22 aggregated sectors of the 1380 (2000) survey-based Input-Output table. The overall results show high correlation coefficients between the conventional methods. Furthermore,, we find that the eigenvector method is able to better identify those sectors which remains in the production process and therefore the key sectors.
Gholamreza Keshavarz Haddad
Volume 6, Issue 21 , February 2005, , Pages 115-133
Abstract
In this Paper financial services in the Iranian economy, which is portioned into 41 industries, is considered as a sector with a Leontief production function. Financial Sectors, buy inputs from other sectors, and provide services to expedite the cash fellows and risk transformation for other sectors. ...
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In this Paper financial services in the Iranian economy, which is portioned into 41 industries, is considered as a sector with a Leontief production function. Financial Sectors, buy inputs from other sectors, and provide services to expedite the cash fellows and risk transformation for other sectors. The former relations are called Backward Linkage and the later relations through which the sectors provide output to meet required cash fellow and risk reduction of economic activities are called Forward Linkage. In quantification of the linkages, employment and output elasticity, the forward index of value added, and backward linkage of final demand are used. Furthermore, direct and indirect effects of a hypothetical extraction of the sectors on output and employment are calculated. The results show that, although the linkages between financial sectors and the rest of the economic activities are not strong, their extraction will result in 225246.8 decrease in job opportunity, according to the 1370 input-output table produced by the Statistical Center of Iran.
