Political economy
Farshad Moameni; hojjatollah mirzaei; ali jafari shahrestani
Abstract
Before 1990th, in political economy theories, the security of property rights was to be presumed. The importance of property rights as the underlying factor of economic growth and economic development was first noticed by new institutional economists and then expanded. This paper studied the Marxist ...
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Before 1990th, in political economy theories, the security of property rights was to be presumed. The importance of property rights as the underlying factor of economic growth and economic development was first noticed by new institutional economists and then expanded. This paper studied the Marxist and methodological individualism political economy approaches that have been used by researchers to describe the main reasons for the underdevelopment of Iran with a focus on property rights.The weakness of them all is inadvertence to Iranian historical features and failure to present an independent theory regarding the inefficiency of property rights in the history of Iran. Therefore, using the new institutional approach, which is based on historical studies and society institutions and using them in the analysis of the role of property rights on underdevelopment and not just studying the series of historical developments and geographical features, could be a facilitator. In this way, this paper suggests focusing on these features of Iran:1) Specific climatic conditions of Iran with the lack of water, which is the main reason for tension;2) The effect of climate conditions on political and economical systems (the government theory) and forming nomadism and tribal life and tribal governments;3) The effect of forming those political and economical system on property rights underdevelopment (the property rights theory).
Political economy
Hossein Tavakolian; reza talebloo; Shaghayegh Abasali
Abstract
Despite, the measures for improvement of the State budget system in the current economic situation in Iran, no improvement has been taken. As, the relationship between beneficiaries of the budget included the government, parliament, regulatory bodies, and people as the final beneficiary of budget, has ...
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Despite, the measures for improvement of the State budget system in the current economic situation in Iran, no improvement has been taken. As, the relationship between beneficiaries of the budget included the government, parliament, regulatory bodies, and people as the final beneficiary of budget, has not regulated properly, therefore, transparency and accountability of the various officials of the government has been decreased. In this paper, we study budgetary and off-budgetary operation of the government and its impact on inflation with emphasis on fiscal dominance via banking system, using Generalized Methods of the Moments (GMM) trough 1372-1397. The results indicate that increasing the fiscal dominance via the debt channel of banking system has positive effect on inflation thus, fiscal dominance via banking system has been proved. Also, the results confirm the negative relationship between political stability and control of corruption on inflation. This variable has been in a low level during the sample period which requires the attention of government in all areas and political factions of country.
Political economy
Alireza Raanaei; rouhollah shahnazi; Seyyed Aqil Hoseiny
Abstract
The history of modern Iran is full of movements and revolutions. The primary goal of these events has been to achieve a proper balance between the government and society. Although the efforts of Iranians in their modern history have not been fruitless, they have yet to reach the ideal balance between ...
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The history of modern Iran is full of movements and revolutions. The primary goal of these events has been to achieve a proper balance between the government and society. Although the efforts of Iranians in their modern history have not been fruitless, they have yet to reach the ideal balance between the government and society. The present research, through a brief narration of modern history, examines the pathways of progress for the Iranian government and society. To this end, an institutional analysis framework is expanded, and by employing the idea of institutional congruity, a new analytical framework is constructed to analyze the interaction between society and government in Iran. Subsequently, using game theory within this framework, various scenarios of this interaction are examined. The research findings indicate that depreciation, economies of scale, and the instability of preferences are important factors in the dynamics related to the interaction between government and society. Nevertheless, the rate of time preference is the more determining factor, to an extent that determines three possible equilibriums: democracy, despotic Leviathan, and absent Leviathan.
Political economy
Abolfazl Shahmohammadi; Mohammad Ali Feizpour; Mehdi Hajamini; Mohammad Abedi Ardakani
Abstract
Many studies have evaluated political power from a qualitative and quantitative perspective. But the present study tries to provide a quantitative criterion for calculation of power. To do this, using the country’s budget law, the institutions that enjoys from national budget are identified and ...
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Many studies have evaluated political power from a qualitative and quantitative perspective. But the present study tries to provide a quantitative criterion for calculation of power. To do this, using the country’s budget law, the institutions that enjoys from national budget are identified and then the officials who are at the head of those institutions from each province are identified. Then the importance coefficient of each official is calculated based on multiplication of two indicators: the allocated budget to his/her institution or organization and the duration of his/her tenure in each year. The power matrix for each province is made. Finally, the power index for Iranian provinces is calculated using methods of Simple Additive Weighting, TOPSIS, and Numerical Taxonomy. Then, according to TOPSIS method, the regions of Iran were divided into four groups. The findings show fundamental inequalities in the distribution of economic- political power in the regions of Iran during the period of 2009-2019. Also, The most fluctuations in economic-political power index have occured mainly in the middle groups. Since, most previous studies have emphasized regional inequalities in Iran based on various indicators, it seems that there is a correlation between the distribution of economic-political power and regional inequalities of Economic development. As a result, given the current status without change in the political power of the provinces, one can not expect a significant change in the economic development of the regions.
Political economy
Behrouz Sadeghi Amroabadi; Ehsan Kazemi
Abstract
Improving the quality of institutions with development of the country's economic infrastructure can reduce the degree of fiscal policy cycles in developing countries. Therefore, the purpose of this study is to analyze the effects of good governance and political cycles on the liquidity and budget deficit ...
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Improving the quality of institutions with development of the country's economic infrastructure can reduce the degree of fiscal policy cycles in developing countries. Therefore, the purpose of this study is to analyze the effects of good governance and political cycles on the liquidity and budget deficit changes during 1978-2018. The research method is descriptive analytical by using econometric method of the GMM. Data are from the Central Bank of Iran and World Bank site for Iranian Economy. The research results show the effect of good governance on the variables of liquidity and budget deficit changes are negative and significant. Also the interactive effects of good governance and the election dummy variables on the liquidity and budget deficit changes are negative and significant. These results indicate that good governance during the elections can control the budget deficit and liquidity changes, hence to control the business-political cycles, suggest to improve the good governance in Iran.
Political economy
Salman Gharakhani; Mohsen Renani; Zahra Karimi
Abstract
One of the prevalent theoretical models for understanding the historical roots of the underdevelopment of various societies is the new institutionalist theory of institutional quality improvement which emphasizes the fundamental origins of economic growth. According to this theory, societies with inclusive ...
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One of the prevalent theoretical models for understanding the historical roots of the underdevelopment of various societies is the new institutionalist theory of institutional quality improvement which emphasizes the fundamental origins of economic growth. According to this theory, societies with inclusive institutions will experience a sustainable economic growth and development by creating a creative destruction process and a generative rent distribution while moving toward evolutionary cycles. Societies with extractive institutions, however, will lag behind and decline in the long run due to the dominance of rent relations and the non-generative rent distribution while moving toward vicious cycles. During the second Pahlavi period, despite its short-term experience of economic growth, Iran moved to vicious cycles instead of evolutionary ones; therefore, in order to investigate this issue, the reasons for the lack of sustainable economic growth during this period will be addressed using the theory of institutional quality improvement. To this end, one of the most important institutional barriers to economic growth in this period will be addressed through examining the process of creative destruction on the political and economic market. The results of this study indicate that despite experiencing the short-term economic growth achieved under the shadow of extractive institutions during this period due to factors such as power struggles, dominance of personal relations over affairs, the non-generative rent distribution etc., the process of creative destruction did not take shape on the political and economic market, so that despite the abundance of sources of income and foreign aid, Iran could not maintain its economic growth and development.
