Elaheh Asadi Mehmandosti; Fatemeh Bazzazan; Mir Hossein Mousavi
Abstract
The main aim of this paper is to estimate updated and accurate measurement of total factor productivity (TFP), price and substitution elasticities in the manufacturing sector in Iran over the period 1974-2013 by using a locally flexible normalized quadratic (NQ) functional form. Substitution elasticities ...
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The main aim of this paper is to estimate updated and accurate measurement of total factor productivity (TFP), price and substitution elasticities in the manufacturing sector in Iran over the period 1974-2013 by using a locally flexible normalized quadratic (NQ) functional form. Substitution elasticities indices are estimated in two scenarios: the first, interfactor substitution index and the second, interfuel substitution index. Empirical results show that the average TFP indices are 0.32% and 0.62% in the first and second scenario respectively. The results also show that all inputs based on the cost elasticities are normal goods, and the Allen own-elasticities of substitution for the different inputs are negative in the both scenarios. Moreover, the Morishima interfactor and interfuel elasticities of substitution are positive and less than one, except in one case. The results highlight the fact that the substitution between different inputs and fuels has been quite restricted.
Abdorasoul Sadeghi; Seyed Komail Tayebi
Abstract
Due to the historical importance of inflation in the Iranian economy and its serious effects on the society, the present study has explored the impacts of international sanctions and other effective factors on the inflation rate in Iran during 1981-2014. To this end, this paper has specified an econometric ...
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Due to the historical importance of inflation in the Iranian economy and its serious effects on the society, the present study has explored the impacts of international sanctions and other effective factors on the inflation rate in Iran during 1981-2014. To this end, this paper has specified an econometric model of inflation rate, which has been estimated by the ARDL method using relevant time series data including the above period. The empirical results obtained indicate that the international sanctions have had direct and significant effects on the inflation rate through changes in exchange rate and budget deficit. Additionally, exchange rate, money liquidity and deposit interest rate have had positive and significant effects on the inflation rate, while oil revenues and tax earnings have influenced indirectly and significantly Iran’s inflation rate over the period.
Ahmad Mohammadi; Zeinab Savari
Abstract
After the unprecedented volatility of gold coin prices over the past years in Iran, there has been a growing concern among academic and policy makers about the potential role of gold coin futures contract in this regard. This paper investigates the impact of gold futures contract on the respective spot ...
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After the unprecedented volatility of gold coin prices over the past years in Iran, there has been a growing concern among academic and policy makers about the potential role of gold coin futures contract in this regard. This paper investigates the impact of gold futures contract on the respective spot market in Iran. For this purpose, two approaches have been used. In the first approach (volatility spillovers approach), a DCC-GARCH-VECM model has been employed for studying the volatility spillovers between gold coin spot and futures markets over the period November 2013- June 2015. In the second approach (dummy variable approach), the impact of the introduction of gold coin futures contract on the spot market has been analyzed using a simple GARCH model. The model is estimated by using daily spot and futures prices of gold coin in the period June 2006- June 2015. The results show that the introduction of futures contact has not affected the volatility of the spot market. Moreover, the volatility transmission is from the spot market to the futures market meaning that spot market shocks increase futures market volatility, not vice versa. Furthermore, the results show that economic sanctions against Iran have had a significant effect on the volatility of the spot market. The results are consistent with basic characteristics of the futures market in Iran: it is in the early stages of its development and its size, in comparison to the spot market, is small. Therefore it is acceptable to see that the volatility is transmitted from the spot market to the futures market.
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.
Hosein Mohammadi; Morteza Mohammadi; Parisa Alizadeh
Abstract
Achieving a higher rate of economic growth is one of the main goals of each country that policymakers often pay special attention to it. Therefore, investigating the causes of economic growth is important. Import tariffs as one of the most important factors affecting economic growth have been neglected ...
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Achieving a higher rate of economic growth is one of the main goals of each country that policymakers often pay special attention to it. Therefore, investigating the causes of economic growth is important. Import tariffs as one of the most important factors affecting economic growth have been neglected in many previous studies. Therefore, the aim of this study is examining factors affecting economic growth in ECO countries with an emphasis on the role of import tariffs during the period 1996-2014. The results of dynamic panel data using PMG estimator show that the effect of import tariffs on economic growth in the short and long run is negative and significant. In addition, the effect of trade liberalization on economic growth in the short run is positive and significant. Therefore, by reducing import tariffs and moving toward more trade liberalization, economic growth in ECO countries increases. Furthermore, the labor force had a negative effect and human capital had a positive effect on the economic growth. Finally, results showed that physical capital had the most effect on economic growth in this group of countries. Therefore, improving the business environment, encouraging private investment, moving toward more competition in economic activities with trade liberalization, and moving toward more economic transparency are some recommendations of the current study.
Seyed Ali Rohani; Dariush Aboohamzeh
Abstract
Efficient government cash management (collection of revenues, receipts and allocation of expenditures), is one of the most important treasury functions and a critical prerequisite for fiscal discipline of the government. The present study investigates the main processes and procedures of the Treasury ...
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Efficient government cash management (collection of revenues, receipts and allocation of expenditures), is one of the most important treasury functions and a critical prerequisite for fiscal discipline of the government. The present study investigates the main processes and procedures of the Treasury cash management in Iran, according to related laws, by-laws and regulations. For this purpose, processes related to inflow and outflow of funds to/from the treasury, is reviewed, classified by type of funds (Public Funds, Private Funds, Funds of State-Owned Companies, oil revenues, and Deposit Trust Funds). Graphs extracted from this study, provide the preliminaries to evaluate the efficacy of Treasury cash management processes. Based on our findings, the main criticisms of the current cash management processes in Iran are: 1- Slow and lagging flow of revenues and expenditures of the public sector, 2- Rent-seeking behavior in banks and government agencies, 3- Inefficient cash payment procedures (based on allocation). According to other countries' experiences and also the IMF policy recommendations, the first step for the modification of the existing processes of the Treasury liquidity management, is the establishment of Treasury Single Account (TSA) and concentrating all government accounts at the Central Bank, which will increase transparency, effective monitoring and efficiency of government cash resources.
