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Showing 2 results for Gross Domestic Production
Majid Eslami Andargoly, Hossein Sadeghi, Ali Ghanbari, Mohammad Mohammadi Khabazan,
Volume 12, Issue 2 (7-2012)
Abstract
Withdrawing energy subsidies has inevitably welfare effects on the Iranian economy. The estimation of this effect can help policy-makers and planners to take the right decisions. In this paper, welfare effects of cash transfer are calculated for electrical energy subsidies using a social accounting matrix and the computable general equilibrium model. In order to evaluate the welfare effect of this policy, GDP index has also been implemented. Three scenarios of prices, cash payment of subsidies and model simulation are considered in this regard. The research findings reveal that as a result of these policies, GDP will dramatically decrease and the economy will fall into a recession. If the cash payments are financed through the following three methods; a) surplus government revenues, b) sales tax on electricity commodity, c) income tax, combined with price increasing policy, will cause a deeper recession and a lower rate of GDP as a result. This trend has a negative and reverse relation with the amount of cash payment subsidies and electrical energy price. Also, the rate of change will heavily depend on the sort of financial resources for such subsidies, as with an increase in cash subsidies and electricity prices, the result would be decreased level of GDP over time.
Volume 17, Issue 5 (9-2015)
Abstract
Among the food products, grains play an important role in the consumption patterns of people, especially in the developing countries. Since Iran's main source of public dietary energy comes directly from grains, investigating and identifying the determinants of import of these products can be an important step towards food security. Most experimental studies consider import of grains as only a function of relative prices and real income, whereas, income inequality is also a variable affecting the import of grains. The present study evaluates the effect of income inequality on the import of grains in Iran's economy during the years 1969-2009. For this purpose, the relationship of grain import with gross domestic production (GDP), grain production, real exchange rate, and income inequality was evaluated for Iran by using the Vector Error Correction Model (VECM). The results indicate that the relationship between income inequality and grain import is positive and its coefficient is +0.55%. This implies that 1% increase in income inequality increases grain import by 0.55%. Also, the effect of gross domestic production on grains import is positive and the real exchange rate and grains production variables have a negative and significant effect on grains import.