Showing 10 results for Iranian Economy
Yadolah Dadgar, Ali Akbar Ghafari,
Volume 8, Issue 3 (10-2008)
Abstract
In addition to its fiscal role, income tax does have its own allocative and distributive role too. A key role of income tax is its distributive one, because of which the first principle of tax is “justice principle”. The responsibility of this paper is investigating the salary taxing on income distribution in Iranian economy. To evaluate the above problem, we have tested the models of,so called ,Engel, Galetoric and Raddatz in Iranian economy. We also have called those modeling system ”EGR” .The findings of our paper shows that the optimum tax rates in Iranian economy for years of third development plan are (respectively), 25.18,28.28,12.5,12.5,12.5.So when we compare the actual tax rates with the optimum ones we observe a considerable gap between potential and actual situation in Iranian tax system.
Yadollah Dadghar, Ali Reza Gholamzadeh,
Volume 10, Issue 2 (7-2010)
Abstract
The objective of this paper is to analyze entrepreneurship in Iran. More specifically, it focuses on the introduction of the entrepreneurial aspects of the 16th famous Iranian entrepreneur and evaluates his performance. To this end, we study the performance of late Mustafa Ali Nasab as a distinguished entrepreneur. We describe the main characteristics of the entrepreneur through analyzing the productivity performance of his two firms including oil and gas industry. The findings confirm that following his passing, the productivity of the firms is significantly decreased.
Hossein Sadeghi, Reza Vafaie Yeganeh, Hasan Mohammad Ghaffari, Masaeli Arashk,
Volume 10, Issue 3 (10-2010)
Abstract
The purpose of this study is to introduce an index for calculating transaction costs in Iran over the 1984-2006 period. In order to calculate the transaction costs, Fuzzy Logic Approach is employed using MATLAB software. Based on the literature review, the determinants of the transaction costs are identified. They mainly comprise the standard deviation of the inflation rate, economic freedom, cash ratio and the ratio of public costs to GDP. Three scenarios are considered to calculate the transaction costs.
Overall, the result shows that there is a cyclical trend in the transaction costs over the period considered in this study. The transaction costs decreased after the period of war - 1372-1374 - in all three scenarios considered. Following this period, however, the transaction costs has an upward trend and continued to increase until 1381 in all scenarios. After this increasing trend, the transaction costs have again decreased in the three scenarios.
Hossein Asgharpour, Sakineh Sojoodi, Nasim Mahin Aslani Nia,
Volume 11, Issue 3 (10-2011)
Abstract
According to exchange rate pass-through models, exchange rate has a great impact on the competitiveness of exports and determining the effects of exchange rate on export prices can be useful in planning for export promotion. For this purpose, in this paper it has been attempted in the theoretical framework of exchange rate pass- through models and applying ARDL approach the effects of exchange rate on non- oil exports price of Iran during 1971 to 2007 has been tested empirically. The findings show that there is a significant positive relationship between exchange rate and export price index so that by increasing exchange rate (devaluation of national currency) export price index increases significantly. Exchange rate pass- through to export prices is complete and to import prices in terms of destination currency is zero. In other words, the empirical results of this study indicate that in the Iranian economy, exporters are faced with devaluation of national currency (increase in exchange rate), which increases export prices in terms of domestic currency. Thus, the exchange rate changes have not significant effects on export prices in terms of destination currency and just affect the profits of exporters.
Yadollah Dadgar, Towhid Firouzan Sarnaghi,
Volume 12, Issue 4 (1-2013)
Abstract
For determining the profit in transactional contracts, there is no a comprehensive theory. Some viewpoints are very general and others are based on exchange rate of return, which contain speculative difficulties. Some others use international Libor rate and so on. Due to the lack of a consistent theory, this paper is introducing shadow cost approach to fill the gap in question. This is indeed going to estimate capital return or opportunity cost of capital. Introducing an efficient method is the main finding of this paper. In terms of methodology, this paper is based on statistical analysis and econometric methods.
Mohammad Mowlaei, Abulghasem Golkhandan,
Volume 14, Issue 4 (1-2015)
Abstract
Boom and recession cycles in different countries relate to the U.S. business cycles. The study of severe recession in the U.S. can predict a contemporaneous global recession and provide policies to reduce the negative effects. This paper analyzes the business cycles of the U.S. using three stylized facts and reasons. The consequences of U.S. business cycles, as a developed country, have been compared to those of Iranian business cycle in the final section of each part. The period covers quarterly data for U.S during 1960-2010. This paper analyzes the data using VAR model. Our findings show the severe economic recessions have been started in the U.S. during 1980 and 2008.in addition, The U.S. economy has experienced the longest period of economic boom during 1980s and 1990s. Comparing business cycle features of the U.S. and Iran suggests that the severity and extent of boom and recession cycles is much higher in Iran than America. According to the stylized facts on business cycles, some common features of the variables have been confirmed in both countries. On the other variables, the Iranian model is the same of developing countries and the American model is consistent with the developed countries. In terms of the causes of business cycles, the private residential investment has been major cause of business cycles in American economy in the recent years, while exogenous oil price shocks on the Iranian economy has been the most important factor.
Majid Maddah, Sara Ebrahimi,
Volume 16, Issue 2 (8-2016)
Abstract
Since private sector investment is dependent on people deposits with banks, the amount of deposits affects national investment and product. The various factors influence private deposits with banks. This paper investigates the relationship between rent-seeking opportunities and bank deposits using the Auto Regressive Distributed Lag Model (ARDL) in Iranian economy during 1971-2010. The results show that the exchange rate premium and interest rate premium affect quantity of deposits with banks in the short-run with coefficients of orders -0.1486 and -0.3468, respectively. Moreover, the long-run equilibrium relationship indicates that the elasticity of deposits relative to rent-seeking opportunities in exchange and money markets are -0.0166 and -0.0389, respectively. These findings show that rent-seeking indicators have significant and negative effects on private deposits with banks. In fact, rent-seekingopportunities stimulate individuals to shift away their deposits from formal money market towards informal markets in order to make more profits.
Mr. Naeim Shokri, Dr Murteza Sahab Khodamoradi,
Volume 20, Issue 3 (9-2020)
Abstract
This study aims to measure magnitude of capital flight from Iran by employing Ndikumana and Boyce (2003) method during the period 1976-2018. In order to check the existence of long-run relationship between capital flight and its determinants, it applies the Bounds Testing Approach developed by Pesaran et al (2001) within a general-to-specific econometrics methodology. Then, it applies the Autoregressive Distributed Lags approach to estimate the short run and long run behavior of capital flight from Iran. The results show that capital flight has high records during the first years of the Islamic revolution and the eight-year war between Iraq and Iran, so that the highest capital flight (141.1 billion dollars) has been estimated for 1979-1980 fiscal year. In addition, the findings indicate that the highest and lowest capital flights have been estimated in 2011 and 1997, respectively. In recent years, capital flight has been increasing due to sharp exchange rate fluctuations. Moreover, increases in inflation and the government fiscal deficit significantly contribute to capital flight and the increase in net foreign exchange reserves reduces the capital flight.
Volume 23, Issue 6 (11-2021)
Abstract
Energy and agriculture sectors play a key role in Iran's economy as the former provides considerable share of the public budget and the latter contributes significantly to employment, non-oil exports, and food self-sufficiency. Iranian government is following an energy subsidy targeting policy to increase energy (especially exhaustible ones) efficiency. Obviously, this will influence, among others, energy price and consumption, cost of production and, finally, food price. Therefore, the current study focused on the nexus between energy consumption and food price in Iranian agriculture. Since such relationships may differ as food consumption varies, the quantile regression model was applied and estimated using data for the period 1966-2017. Main findings revealed the direct and significant impact of energy consumption and globalization index on food price in the 0.75th quantile, while exchange rate showed the same effect in 0.25th and 0.75th quantiles. Furthermore, money supply was explored as another driver for food price in all quantiles.
Mr Seyed Mahdi Hosseini Maasoum, Dr Amineh Mahmoudzadeh, Dr Seyyed Ali Madanizadeh,
Volume 24, Issue 2 (5-2024)
Abstract
Introduction
The question of why different countries vary in terms of per capita welfare, has always been a fundamental issue in economics. It is generally agreed within the economic literature that the disparity in per capita income among nations cannot be primarily attributed to differences in the production inputs. Instead, it seems that the main discrepancy lies in the total factor productivity (TFP) of each country.
Another crucial question is what factors contribute to the differences in TFP. The related literature generally falls into two categories. The first suggests the problem is the lack of advanced technology usage. According to these theories, various factors, including detrimental government businesses in developing countries fail to utilize the recent technologies, which lead to lower TFP.
The second, more recent line of thought emphasizes the heterogeneity and disparity of firms within each country rather than considering a representative firm for each nation. The "misallocation" literature builds on the idea that differences in TFP among countries not only depend on individual firms productivity but also on how production inputs are distributed among these firms.
This research seeks to answer what factors contribute to the misallocation of physical capital in the Iranian economy. Such an unnderstanding is crucial to address misallocation and move towards optimal allocation, thereby enhancing productivity and welfare. However, it is first necessary to identify what factors cause misallocation as each one demands a distinct solution. Some of these factors are inherently optimal, such as misallocation caused by the firms technology heterogeneity or the presence of physical capital adjustment costs, which do not require any corrective action. In contrast, others result from disruptive government policies and a hostile economic environment that stifle the economy.
Methodology
In order to address this research question, we utilize a general equilibrium model based on the work of David and Venkateswaran (2019), featuring heterogeneous firms. We estimate the parameters using panel data from industrial workshops from 2003 to 2013 (the most recent data available) and employ the Generalized Method of Moments (GMM). The estimation of structural parameters allows us to disentangle the influences of five misallocation-causing factors. These are: 1. Investment adjustment costs, 2. Information frictions, 3. Distortions, 4. Heterogeneity in firms mark-ups, and 5. Heterogeneity in firms technology. It should be noted that in this model, information frictions refer only to firm's uncertainty about its own future productivity, not macro-level uncertainty.
One notable feature of this research is its consideration of several misallocation factors within a single model. As will be discussed further, concentrating on one misallocation factor without considering others could significantly bias estimates of that factor role. By incorporating multiple factors into a unified framework, we can obtain unbiased estimates of each factor. Choosing appropriate moments to match the data and the model is a major challenge in this process. David and Venkateswaran (2019) demonstrate that by selecting five specific moments, the model parameters can be estimated uniquely and without bias.
Another strength of this study lies in its use of statistical data from the annual survey of industrial plants. Given the significant differences between smaller businesses and large corporations, along with the former considerable role in employment in Iran, studies based solely on large corporations cannot paint an accurate picture of the Iranian economy.
Results and Conclusion
Our findings indicate that capital adjustment costs, heterogeneity in the production function, and heterogeneity in firms mark-ups are the three primary causes of misallocation in the Iranian economy, accounting for over 80% of the variance in average capital production. Furthermore, the results demonstrate that misallocation has grown during the study period, with a particularly notable increase after 2007 due to the growing impact of disturbances.
