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Showing 6 results for Opec
Abbas Assari, Majid Aghaei Khondabi,
Volume 8, Issue 2 (7-2008)
Volume 8, Issue 2 (7-2008)
Abstract
The worldwide development of information and communication technology (ICT), commonly called ICT revolution, has accelerated dramatically since the second half of twenty century. The main characteristic of this revolution is the rapidly increasing computing power of new ICT products. Varying results achieved by different countries and regions fuel the debate over exactly how much influence ICT has on economic growth. We provide an insight of results from past studies carried out to confirm the productive relationship between the two, ICT and economic growth. The focus of this paper is to examine the impact of ICT on economic growth in OPEC countries using panel data over the period 1998-2004. Based on the literature, a Cobb-Douglas production function is specified to include ICT indicators. The results of estimates show that ICT contributed significantly to economic growth of OPEC countries over the period under study
Lotfali Agheli, Bahram Sahabi, Nasrin Solhkhah,
Volume 17, Issue 1 (4-2017)
Volume 17, Issue 1 (4-2017)
Abstract
Optimal performance of an economic system depends on the presence of efficient, strong, and supplementary real and financial sectors. Working together of them is necessary and sufficient condition for the survival of the economic system in general. This study aims to explain the impact of transaction cost on financial development for OPEC members during 1990-2012. In the present study, the effect of transaction costs on financial development is estimated by an econometric model according to Baltagi et al (2007). In this regard, the index of the banking sector efficiency (private credits) is used to explore the development of the banking sector, and stock market turnover ratio (in percent) and Total Value (of shares) Traded (TVT)/GDP (in percent) is used to study the development of the non-banking sector. Explanatory variables include the transaction costs, the government size, the per capita income, and degree of openness of economy. The estimation results using Panel Data indicate that the transaction costs affect financial development significantly; and the reduced transaction costs result in increasing financial development. With regard to property rights, we conclude that guaranteed property rights raise the financial development. Also, per capita income and government size have positive and negative relationships with financial development, respectively.
Volume 17, Issue 2 (3-2015)
Abstract
The mode of heat and mass transfer during baking of bakery products is an important factor determining the quality of the final product. The heating rate could alter the starch properties during gelatinization and affect the quality of products after baking and during aging. Sangak is a kind of Iranian flat bread baked on the hot pebble gravels. The aim of this study was to evaluate the impacts of baking beds (gravel and metal beds) and baking temperatures (280, 310 and 340°C) on staling of Sangak bread during storage at 20°C. The mean value of the measured heating rate of bread baked on gravel bed was higher than that in bread baked on metal bed. In the case of baking on gravel bed, unlike baking on the metal bed, the increase of baking temperature had no significant effect on all quality parameters (moisture content, firmness and freezable water of breads, etc). Recrystallization of amylopectin seemed not to be related to the baking condition. During aging, the firmness of bread baked on gravel bed was significantly lower than that for bread baked on the metal bed and baking at higher temperature and shorter time resulted in the increment of moisture content and the decrease of firmness. As a consequence, baking on gravels and higher baking temperature increased the heating rate, which led to reduction of the staling kinetic of Sangak bread.
Rouhollah Nazari, Mehdi Khodaparast Mashhadi, Ahmad Seifi,
Volume 17, Issue 2 (6-2017)
Volume 17, Issue 2 (6-2017)
Abstract
Scientific study of the major oil producers has always been one of the issues facing economic experts. The emergence of Organization of the petroleum Exporting Countries (OPEC) as a major player in the world oil market resulted in increasing researches on the behavior of OPEC and its members. Iran as the second largest oil producer in OPEC has achieved the special place in shaping the policies of this organization. This paper investigates the behavior of Iran in OPEC using monthly data from 1973:1 to 2015:12. Therefore, first model is estimated using Griffin linear model, and then it is estimated using a Markov Regime-switching method with two states: probability of fixed transition and probability of time-varying transition. The results of fixed transition probability method showed that the behavior of Iran is nonlinear; and collusion regime is the most common behavior for Iran, so that the chance of staying in competitive regime is 0.005 percent. In other words, over the period under study, Iranian behavior within organization has been frequently consistent with other members based on agreement and collusion and cartel-like rules. However, the findings of the time-varying transition probability method have not clearly determined factors affecting non-linear effects on the production behavior of Iran.
Dr Bakhtiar Javaheri, Dr Saman Ghaderi, Mrs. Nikoo Ghomashi, Mr. Ramin Amani,
Volume 24, Issue 1 (3-2024)
Volume 24, Issue 1 (3-2024)
Abstract
Economic growth is one of the most common goals in both developed and developing countries. Economic growth affects various economic and social aspects, such as poverty, welfare, unemployment, and inflation. Knowing the factors influencing economic growth is critical for developing countries. Trade of goods and services affects economic growth by increasing national income. On the other hand, nowadays, the world is facing the climate change crisis and its consequences, such as floods, landslides, earthquakes, etc., which can have negative and destructive effects on economic growth. Oil exporting countries have weak export diversity due to single-product trade and are located in the hot and dry orbit of the globe due to their geographical location. The main goal of this study is to investigate the impact of economic complexity as a symbol of international trade and ecological footprint as a symbol of climate change on economic growth in OPEC from 1995 to 2020 and using the method of generalized method of moments (GMM). The results indicate a positive and very significant effect of the economic complexity index on economic growth in oil-exporting countries. On the other hand, the ecological footprint has a negative and significant impact on economic growth in OPEC.
Introduction:
Economic growth and development are main goals in developing countries, because achieving growth and development can increase living standards, increase people's well-being, reduce the level of poverty and unemployment, and consequently strengthen the foundations of governments. Knowing the factors affecting economic growth is one of the critical goals of economic policymakers (Rahimi et al., 2020). In previous studies, much research has focused on the influence of capital, labor, and productivity on economic growth. However, less attention has been paid to other factors. Today, it is clear that export diversification, which is an essential criterion of economic complexity, has a substantial effect on economic growth. On the other hand, the world today is facing climate change, which results from destructive human activities and has very adverse effects on economic growth. Therefore, the main goal of this research is to investigate the effect of economic complexity and ecological footprint on economic growth in OPEC from 1995 to 2020 using the generalized method of moments. In this research, the effect of economic complexity on economic growth in the developing countries of the OPEC organization has been investigated for the first time. On the other hand, in this innovative research, the ecological footprint variable was used to proxy climate change.
Methodology:
There are two methods for estimating model in dynamic panel data. The basic premise of GMM is called the first-order differential method. By imposing some changes to the first-order differential GMM method, the orthogonal deviation GMM method was obtained. In this research, both one- and two-step methods have been used to prevent single effects. Two tests are proposed to ensure the appropriateness of using this method for estimating the model. Initially, the Sargan test is used to demonstrate the validity of instrumental variables. The second test includes the first-order correlation test AR (1) and the second-order AR (2).
Results and Discussion:
The economic complexity index (ECI) in all three models with fixed effects, single-stage GMM, and two-stage GMM has a positive and significant effect on economic growth in OPEC. A one-unit increase in the economic complexity index increases the economic growth of OPEC by 0.028 units in the fixed effects model, 0.032 units in the single-stage GMM, and 0.154 units in the two-stage GMM. The ecological footprint (EF) index in three mentioned models has a negative and significant effect on economic growth in OPEC. A one-unit increase in the ecological footprint index causes a decrease of -0.013 units in the model with fixed effects, -0.038 units in the single-stage GMM, and -0.087 units in the two-stage GMM. The labor force (L), as the main variables of the Solo growth model, has a positive and significant effect on economic growth in OPEC in all models. A one-unit increase in the labor force index causes economic growth by 0.029, 0.028, and 0.055 in models with fixed effects, one-stage GMM, and two-stage GMM, respectively. Gross fixed capital, which is used as capital (K) in this study, has a positive and significant effect on economic growth in OPEC in all three models. A one-unit increase in capital causes an increase in the economic growth of OPEC by 0.017 units in the model with fixed effects, 0.054 units in the single-stage GMM, and 0.163 units in the two-stage GMM, respectively. Productivity of production factors (T), which is also used as technology in some research, has a positive and significant effect on economic growth in OPEC so that a one-unit increase in productivity of production factors causes an increase in economic growth by 0.009, 0.044 and 0.072 units, respectively in the model with fixed effects, single-stage GMM and two-stage GMM.
Conclusion:
The results of the present study showed that in all three fixed effects models, one-stage GMM and two-stage GMM, the economic complexity index has a positive and significant effect on economic growth in OPEC. With the increase in economic complexity, countries' knowledge, technology, and innovation in producing various goods and services will increase. As a result, exports and economic growth will be positively affected. On the other hand, the economic complexity index, in addition to creating a positive effect on quantitative indicators, has a positive effect on qualitative indicators, including the quality of human resources, innovation, savings, and increasing productivity, which can again increase economic growth. On the other hand, in all three models of fixed effects, one-stage GMM and two-stage GMM, the ecological footprint index significantly negatively affects economic growth in OPEC. An increase in the ecological footprint index means the increase in the use of all the planet's natural resources to meet a country's needs, including food, clothing, housing, etc. With the increase in the use of land resources and in the long-term time horizon, the climate change crisis can increase. With the increase in floods, global warming, landslides, and other natural disasters, economic growth will be negatively affected.
Introduction:
Economic growth and development are main goals in developing countries, because achieving growth and development can increase living standards, increase people's well-being, reduce the level of poverty and unemployment, and consequently strengthen the foundations of governments. Knowing the factors affecting economic growth is one of the critical goals of economic policymakers (Rahimi et al., 2020). In previous studies, much research has focused on the influence of capital, labor, and productivity on economic growth. However, less attention has been paid to other factors. Today, it is clear that export diversification, which is an essential criterion of economic complexity, has a substantial effect on economic growth. On the other hand, the world today is facing climate change, which results from destructive human activities and has very adverse effects on economic growth. Therefore, the main goal of this research is to investigate the effect of economic complexity and ecological footprint on economic growth in OPEC from 1995 to 2020 using the generalized method of moments. In this research, the effect of economic complexity on economic growth in the developing countries of the OPEC organization has been investigated for the first time. On the other hand, in this innovative research, the ecological footprint variable was used to proxy climate change.
Methodology:
There are two methods for estimating model in dynamic panel data. The basic premise of GMM is called the first-order differential method. By imposing some changes to the first-order differential GMM method, the orthogonal deviation GMM method was obtained. In this research, both one- and two-step methods have been used to prevent single effects. Two tests are proposed to ensure the appropriateness of using this method for estimating the model. Initially, the Sargan test is used to demonstrate the validity of instrumental variables. The second test includes the first-order correlation test AR (1) and the second-order AR (2).
Results and Discussion:
The economic complexity index (ECI) in all three models with fixed effects, single-stage GMM, and two-stage GMM has a positive and significant effect on economic growth in OPEC. A one-unit increase in the economic complexity index increases the economic growth of OPEC by 0.028 units in the fixed effects model, 0.032 units in the single-stage GMM, and 0.154 units in the two-stage GMM. The ecological footprint (EF) index in three mentioned models has a negative and significant effect on economic growth in OPEC. A one-unit increase in the ecological footprint index causes a decrease of -0.013 units in the model with fixed effects, -0.038 units in the single-stage GMM, and -0.087 units in the two-stage GMM. The labor force (L), as the main variables of the Solo growth model, has a positive and significant effect on economic growth in OPEC in all models. A one-unit increase in the labor force index causes economic growth by 0.029, 0.028, and 0.055 in models with fixed effects, one-stage GMM, and two-stage GMM, respectively. Gross fixed capital, which is used as capital (K) in this study, has a positive and significant effect on economic growth in OPEC in all three models. A one-unit increase in capital causes an increase in the economic growth of OPEC by 0.017 units in the model with fixed effects, 0.054 units in the single-stage GMM, and 0.163 units in the two-stage GMM, respectively. Productivity of production factors (T), which is also used as technology in some research, has a positive and significant effect on economic growth in OPEC so that a one-unit increase in productivity of production factors causes an increase in economic growth by 0.009, 0.044 and 0.072 units, respectively in the model with fixed effects, single-stage GMM and two-stage GMM.
Conclusion:
The results of the present study showed that in all three fixed effects models, one-stage GMM and two-stage GMM, the economic complexity index has a positive and significant effect on economic growth in OPEC. With the increase in economic complexity, countries' knowledge, technology, and innovation in producing various goods and services will increase. As a result, exports and economic growth will be positively affected. On the other hand, the economic complexity index, in addition to creating a positive effect on quantitative indicators, has a positive effect on qualitative indicators, including the quality of human resources, innovation, savings, and increasing productivity, which can again increase economic growth. On the other hand, in all three models of fixed effects, one-stage GMM and two-stage GMM, the ecological footprint index significantly negatively affects economic growth in OPEC. An increase in the ecological footprint index means the increase in the use of all the planet's natural resources to meet a country's needs, including food, clothing, housing, etc. With the increase in the use of land resources and in the long-term time horizon, the climate change crisis can increase. With the increase in floods, global warming, landslides, and other natural disasters, economic growth will be negatively affected.
Mr Ali Rashid Shamkhal, Dr Kambiz Paykarjou, Dr Beitollah Akbari Moghaddam,
Volume 25, Issue 1 (3-2025)
Volume 25, Issue 1 (3-2025)
Abstract
Aim and Introduction
Seigniorage, in addition to being a crucial economic tool, holds a significant position in terms of governance for governments. The way governments manage the power obtained through seigniorage can be influenced by granting independence to the central bank or by adhering to principles of good governance within social institutions. Good governance has several positive effects on government revenues and efficiency. While the use of seigniorage may initially appear as a natural right of governments, if it leads to a faster growth rate of money compared to economic growth, it can result in inflation and impose inflationary taxes.
According to the theory of financial dominance, the practice of monetizing deficits undermines the independence of the central bank, rendering it unable to exercise proper monetary control and policymaking. In countries that are members of the OPEC cartel, where government budgets are often closely tied to oil revenues, budget deficits can be influenced by fluctuations in oil prices, which can incentivize governments to use seigniorage more frequently. Additionally, in the context of good governance, covering up government inefficiency and corruption can also serve as an incentive for increased use of seigniorage. This research focuses on exploring the relationship between good governance and seigniorage in OPEC member countries that have access to oil revenues.
Methodology
This study has employed a panel vector autoregression model to investigate the relationship between good governance and seigniorage among the member countries of the Organization of the Petroleum Exporting Countries (OPEC) during the period of 1995-2020.
Findings
Among the OPEC members, four out of the six facets of good governance were found to have a negative correlation with the government's use of seigniorage. However, no statistically significant correlation was observed between other facets, namely changes in political stability and the absence of violence and terrorism, government effectiveness, and the government's use of seigniorage. The findings also indicated long-term effects of good governance shocks, as an institutional factor, on seigniorage, lasting for up to seven years. Therefore, this study cautiously confirms the negative correlation between the good governance index and the government's use of seigniorage.
Discussion and Conclusion
In OPEC member countries, where governments also control oil revenues, good governance can play a role in managing these revenues. Oil revenues have two effects on government decisions; an income effect and a monetary effect. In terms of income, it increases the government's available revenues, while in terms of money, it can contribute to the country's monetary base. However, unless the domestic equivalent of money is received from the central bank and introduced into the domestic economy, it does not lead to a change in the monetary base and inflationary effects. In countries with active and effective social institutions, better governance enables governments to use oil revenues more efficiently, often directing them towards investment funds to increase the country's wealth. Therefore, the impact of oil revenues on seigniorage in OPEC member countries is determined by the combined effect of these two outcomes. Furthermore, good and efficient governance by the government leads to a reduction in government expenditures, subsequently reducing the need for inflationary financing and the use of seigniorage. Good governance, considering factors such as responsiveness and the political costs of the government when using seigniorage, increases the costs and reduces the government's inclination to rely on inflationary financing.
The research results did not indicate a negative relationship between the variables of "political stability and absence of violence/terrorism" and "government effectiveness." Several factors may contribute to this finding, including the fact that the studied countries are developing nations where government expenditures increase significantly with improved political stability through development programs. Moreover, except for Kuwait and the United Arab Emirates, the government's efficiency in most OPEC member countries is somewhat negative and exhibits low volatility, which may explain the lack of significant impact from changes in government effectiveness on seigniorage.
As various studies have confirmed, improving good governance has positive effects on economic growth. With some caution, this research suggests that enhancing good governance leads to less inflationary financing and reduced government reliance on seigniorage. Therefore, establishing the necessary conditions for better governance in OPEC member countries can help curb inflation, which is one of the main consequences of the government's reliance on seigniorage. Establishing good governance based on appropriate economic, political, cultural, and social structures is feasible, but the decision and willingness of rulers to implement it undoubtedly remain among the most influential factors in this endeavor.
The investigation of good governance and the seigniorage in Iran also demonstrates that Iran relies more on the average OPEC members for inflationary financing or using the seigniorage, and its governance indicators are lower than the selected countries' average. Therefore, based on the results obtained from the analysis of responce functions in empirical analysis, it is essential to pay attention to changing and improving the methods of governance and administration of the country. This way, monetary governance can be improved, and the government's use of the seigniorage can be limited
Seigniorage, in addition to being a crucial economic tool, holds a significant position in terms of governance for governments. The way governments manage the power obtained through seigniorage can be influenced by granting independence to the central bank or by adhering to principles of good governance within social institutions. Good governance has several positive effects on government revenues and efficiency. While the use of seigniorage may initially appear as a natural right of governments, if it leads to a faster growth rate of money compared to economic growth, it can result in inflation and impose inflationary taxes.
According to the theory of financial dominance, the practice of monetizing deficits undermines the independence of the central bank, rendering it unable to exercise proper monetary control and policymaking. In countries that are members of the OPEC cartel, where government budgets are often closely tied to oil revenues, budget deficits can be influenced by fluctuations in oil prices, which can incentivize governments to use seigniorage more frequently. Additionally, in the context of good governance, covering up government inefficiency and corruption can also serve as an incentive for increased use of seigniorage. This research focuses on exploring the relationship between good governance and seigniorage in OPEC member countries that have access to oil revenues.
Methodology
This study has employed a panel vector autoregression model to investigate the relationship between good governance and seigniorage among the member countries of the Organization of the Petroleum Exporting Countries (OPEC) during the period of 1995-2020.
Findings
Among the OPEC members, four out of the six facets of good governance were found to have a negative correlation with the government's use of seigniorage. However, no statistically significant correlation was observed between other facets, namely changes in political stability and the absence of violence and terrorism, government effectiveness, and the government's use of seigniorage. The findings also indicated long-term effects of good governance shocks, as an institutional factor, on seigniorage, lasting for up to seven years. Therefore, this study cautiously confirms the negative correlation between the good governance index and the government's use of seigniorage.
Discussion and Conclusion
In OPEC member countries, where governments also control oil revenues, good governance can play a role in managing these revenues. Oil revenues have two effects on government decisions; an income effect and a monetary effect. In terms of income, it increases the government's available revenues, while in terms of money, it can contribute to the country's monetary base. However, unless the domestic equivalent of money is received from the central bank and introduced into the domestic economy, it does not lead to a change in the monetary base and inflationary effects. In countries with active and effective social institutions, better governance enables governments to use oil revenues more efficiently, often directing them towards investment funds to increase the country's wealth. Therefore, the impact of oil revenues on seigniorage in OPEC member countries is determined by the combined effect of these two outcomes. Furthermore, good and efficient governance by the government leads to a reduction in government expenditures, subsequently reducing the need for inflationary financing and the use of seigniorage. Good governance, considering factors such as responsiveness and the political costs of the government when using seigniorage, increases the costs and reduces the government's inclination to rely on inflationary financing.
The research results did not indicate a negative relationship between the variables of "political stability and absence of violence/terrorism" and "government effectiveness." Several factors may contribute to this finding, including the fact that the studied countries are developing nations where government expenditures increase significantly with improved political stability through development programs. Moreover, except for Kuwait and the United Arab Emirates, the government's efficiency in most OPEC member countries is somewhat negative and exhibits low volatility, which may explain the lack of significant impact from changes in government effectiveness on seigniorage.
As various studies have confirmed, improving good governance has positive effects on economic growth. With some caution, this research suggests that enhancing good governance leads to less inflationary financing and reduced government reliance on seigniorage. Therefore, establishing the necessary conditions for better governance in OPEC member countries can help curb inflation, which is one of the main consequences of the government's reliance on seigniorage. Establishing good governance based on appropriate economic, political, cultural, and social structures is feasible, but the decision and willingness of rulers to implement it undoubtedly remain among the most influential factors in this endeavor.
The investigation of good governance and the seigniorage in Iran also demonstrates that Iran relies more on the average OPEC members for inflationary financing or using the seigniorage, and its governance indicators are lower than the selected countries' average. Therefore, based on the results obtained from the analysis of responce functions in empirical analysis, it is essential to pay attention to changing and improving the methods of governance and administration of the country. This way, monetary governance can be improved, and the government's use of the seigniorage can be limited
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