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Showing 5 results for Simultaneous Equations
Volume 2, Issue 2 (8-2012)
Abstract
Abstract The purpose of this paper is investigating the impact of servant leadership on followership effectiveness. Model variables are selected through experimental and theoretical study. The data are obtained by survey method, based on surveying the managers and employees of 22 selected governmental organizations, then the hypotheses are investigated. This research is distinguished from other similar researches in that, instead of individual correlation analysis and ignoring other circumstances, using advanced methods, the variables have been simultaneously and two-way analyzed. In order to do this, Eviews 7.1 and spss19 are used for estimating parameters by the use of OLS method; Since there is a possibility for existence of two-way relation between the variables, three stages simultaneous equations (3SLS) is used to estimate simultaneous impacts of servant leadership on organizational effectiveness. The quantitative results of quantitative estimation of the models by the Structural Equation Modeling showed that servant leadership has positive impact on followership effectiveness.
Volume 19, Issue 1 (1-2017)
Abstract
Most developing countries have achieved productivity growth in economic sectors like agriculture for more than 30 years. Universities and governmental research centers have tried to generate knowledge with direct social and economic effects during these decades. So, productivity and production growth can be attributed to technological changes made possible through investment in agricultural research. Also, investment in agricultural research can have high economic returns as well as helps to reduce poverty. Thus, this study investigated the impact of agricultural research investment on productivity growth and poverty reduction in Iran during 1971-2010. To this end, first, an agricultural productivity trend was estimated. Then, the effects of agricultural research expenditure on productivity growth and poverty reduction were evaluated using a system of simultaneous equations. Results indicate that agricultural productivity grew during this time and agricultural research expenditure had positive effect on agricultural productivity and helped reduce poverty. Nonetheless, barriers like low adoption rate of improved agricultural technologies, lack of awareness of potential research benefits, weak extension systems and poor infrastructural development limited the impact of agricultural research on poverty reduction. Therefore, improving the operation of extension services as well as credit and input supply systems are instruments with which to raise returns to agricultural research investments.
Volume 22, Issue 6 (11-2020)
Abstract
Pistachios play a vital role in Iran’s agricultural export. Recently, however, Iran has lost considerable amount of its market share in international trade. This study aimed to address the price and non-price factors affecting the pistachio markets of Iran by estimating a structural system of equations. The domestic supply and demand for pistachios in Iran along with its export demand and supply to European Union, East Asia, and West Asia markets were estimated simultaneously, during 1988 to 2015. The results indicate that Research and Development (R&D) has had a positive effect on the pistachio supply and exports. Hence, it is proposed that the allocation of R&D funding in Iran be reconsidered. However, advertising has an insignificant effect on the Iranian’s export supply in international market. Hence, reviewing the type of advertisement is a vital issue for future research. European countries are less sensitive to the Iranian’s export price of pistachios, while they pay more attention to the quality and taste of the Iranian’s pistachio.
Dr Somayeh Azami, Mrs Fatemeh Hosseini, Dr Kiomars Sohaili,
Volume 24, Issue 2 (5-2024)
Volume 24, Issue 2 (5-2024)
Abstract
Introduction
The emission of greenhouse gases caused by fossil fuels and other human activities is a serious threat to many countries, which is more prevalent due to its nature and is noticeable in most regions of the world. In the last three decades, with the increase of greenhouse gases in the atmosphere, the air temperature is increasing, and it is expected that with the continuation of this trend, unfavorable changes will be made in the environment. According to the report of the Intergovernmental Panel on Climate Change (IPCC), in 2014, 76% of all greenhouse gases are composed of carbon dioxide. Therefore, it can be said that carbon dioxide emissions plays an important role in protecting the environment and sustainable development (Omari, 2013). Many studies have identified the factors affecting carbon dioxide emissions and its relationship with other economic, social and environmental factors in order to achieve sustainable development, among which, energy consumption and economic growth can be mentioned. Energy as a driving force plays an effective role in most production and service activities. On the other hand, energy consumption leads to air pollution due to carbon dioxide emissions. The purpose of this study is to examine economy, energy and environment nexus in Asian countries. It is noteworthy that Asian countries such as China, India, Japan, Iran, Saudi Arabia, and South Korea rank less than 10th in terms of carbon dioxide emissions among the countries of the world. The significance of these effects has an important message for environmental policymakers in solving environmental issues and climate change.
Methodology
This nexus is estimated in the time period of 2002-2018 in the form of Spatial Panel Simultaneous Equations Model (SPSEM) with the Generalized Spatial Panel Two Stage Least Squares (GS2SLS) method. It is tried to analyze this correlation by considering the influence of these countries. Therefore, Spatial Panel Simultaneous Equations Model is used to investigate the three-way communication of economy, energy and environment. The model of simultaneous spatial panel equations makes it possible to analyze the correlation and relationship of economy, energy and environment by considering the influence of countries on each other and spatial spillover effects. In other words, the spatial correlation of countries in terms of economic growth is considered to be the spatial correlation of carbon dioxide emissions.
Findings
The results of this research confirm the spatial correlation of economic growth, energy consumption and environmental quality. In other words, the spatial spillover effects of economic growth, energy consumption, and environmental quality exist significantly, and economic growth, energy consumption, and environmental quality in each country are affected by the economic growth, energy consumption, and environmental quality of another country, respectively. In addition, the quality of the environment spatially has a stronger correlation than the other two series. In other words, selected Asian countries are significantly affected by environmental conditions compared to economic conditions.
On the other hand, economic growth and energy consumption, economic growth and environmental quality, and energy consumption and environmental quality have a significant mutual relationship. The two-way relationship between economic growth and environmental quality indicates that while more production brings more pollution, pollution has direct and indirect harmful effects on economic growth through increasing treatment costs and reducing labor productivity. The two-way relationship between economic growth and energy consumption is also confirmed.
Political stability significantly leads to an increase in environmental quality. The growth of urbanization leads to a decrease in environmental quality due to unfavorable structure of the cities. The share of industrial exports and imports leads to a significant increase and decrease in energy consumption, respectively.
Discussion and Conclusion
According to the results obtained, it can be pointed out that energy consumption and economic growth are incompatible with the environment. It is clear that energy consumption with carbon dioxide emissions leads to an increase in environmental pollution. The reduction of carbon dioxide emissions depends on the modification of the energy consumption pattern and the replacement of renewable energies instead of fossil energies simultaneously in the countries. Policymakers should adopt strategies to reduce energy consumption. There should be an increase in investment in energy infrastructure with the approach of preventing energy waste and looking for alternative energy sources such as solar energy and new and renewable energies to reduce carbon dioxide emissions. In order to adopt effective policies on climate change issues, policy makers must consider the spatial spillover effects of countries. These new empirical results will help policymakers in Asian countries to design appropriate environmental and energy policies to meet the goals for economic development and sustainability.
The emission of greenhouse gases caused by fossil fuels and other human activities is a serious threat to many countries, which is more prevalent due to its nature and is noticeable in most regions of the world. In the last three decades, with the increase of greenhouse gases in the atmosphere, the air temperature is increasing, and it is expected that with the continuation of this trend, unfavorable changes will be made in the environment. According to the report of the Intergovernmental Panel on Climate Change (IPCC), in 2014, 76% of all greenhouse gases are composed of carbon dioxide. Therefore, it can be said that carbon dioxide emissions plays an important role in protecting the environment and sustainable development (Omari, 2013). Many studies have identified the factors affecting carbon dioxide emissions and its relationship with other economic, social and environmental factors in order to achieve sustainable development, among which, energy consumption and economic growth can be mentioned. Energy as a driving force plays an effective role in most production and service activities. On the other hand, energy consumption leads to air pollution due to carbon dioxide emissions. The purpose of this study is to examine economy, energy and environment nexus in Asian countries. It is noteworthy that Asian countries such as China, India, Japan, Iran, Saudi Arabia, and South Korea rank less than 10th in terms of carbon dioxide emissions among the countries of the world. The significance of these effects has an important message for environmental policymakers in solving environmental issues and climate change.
Methodology
This nexus is estimated in the time period of 2002-2018 in the form of Spatial Panel Simultaneous Equations Model (SPSEM) with the Generalized Spatial Panel Two Stage Least Squares (GS2SLS) method. It is tried to analyze this correlation by considering the influence of these countries. Therefore, Spatial Panel Simultaneous Equations Model is used to investigate the three-way communication of economy, energy and environment. The model of simultaneous spatial panel equations makes it possible to analyze the correlation and relationship of economy, energy and environment by considering the influence of countries on each other and spatial spillover effects. In other words, the spatial correlation of countries in terms of economic growth is considered to be the spatial correlation of carbon dioxide emissions.
Findings
The results of this research confirm the spatial correlation of economic growth, energy consumption and environmental quality. In other words, the spatial spillover effects of economic growth, energy consumption, and environmental quality exist significantly, and economic growth, energy consumption, and environmental quality in each country are affected by the economic growth, energy consumption, and environmental quality of another country, respectively. In addition, the quality of the environment spatially has a stronger correlation than the other two series. In other words, selected Asian countries are significantly affected by environmental conditions compared to economic conditions.
On the other hand, economic growth and energy consumption, economic growth and environmental quality, and energy consumption and environmental quality have a significant mutual relationship. The two-way relationship between economic growth and environmental quality indicates that while more production brings more pollution, pollution has direct and indirect harmful effects on economic growth through increasing treatment costs and reducing labor productivity. The two-way relationship between economic growth and energy consumption is also confirmed.
Political stability significantly leads to an increase in environmental quality. The growth of urbanization leads to a decrease in environmental quality due to unfavorable structure of the cities. The share of industrial exports and imports leads to a significant increase and decrease in energy consumption, respectively.
Discussion and Conclusion
According to the results obtained, it can be pointed out that energy consumption and economic growth are incompatible with the environment. It is clear that energy consumption with carbon dioxide emissions leads to an increase in environmental pollution. The reduction of carbon dioxide emissions depends on the modification of the energy consumption pattern and the replacement of renewable energies instead of fossil energies simultaneously in the countries. Policymakers should adopt strategies to reduce energy consumption. There should be an increase in investment in energy infrastructure with the approach of preventing energy waste and looking for alternative energy sources such as solar energy and new and renewable energies to reduce carbon dioxide emissions. In order to adopt effective policies on climate change issues, policy makers must consider the spatial spillover effects of countries. These new empirical results will help policymakers in Asian countries to design appropriate environmental and energy policies to meet the goals for economic development and sustainability.
Dr Seyed Ehsan Hosseinidoust, Dr Akbar Khodabakhshi, Mrs Saeedeh Ahmadi,
Volume 24, Issue 4 (12-2024)
Volume 24, Issue 4 (12-2024)
Abstract
Aim and Introduction
Achieving a high GDP requires an answer to the question of the factors that determine GDP. Social progress is one of the important and influential factors on the GDP. The Social Development Index is a scale for measuring social well-being, which is a completely new way of looking at well-being among countries in the world without referring to GDP. On the other hand, considering the fact that economic and social indicators must be improved as preconditions for increased living standards, which would be only possible in the shadow of economic growth, assumes it as a critical component contributing into improvement of social indicators. In this study, the mutual relationship between social progress index and GDP per capita for selected member countries of the Organization of Islamic Cooperation, during the period of 2012-2021 is investigated. The countries studied in this research are: Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, Cameroon, Egypt, Guinea, Indonesia, Iran, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Malaysia, Mali, Mozambique, Niger, Nigeria, Oman, Pakistan, Saudi Arabia, Senegal, Tunisia, Turkey and UAE. Since the member countries of the Organization of Islamic Cooperation are developing countries, due to problems such as lack of human skills, inefficiency in production, lack of technological development, as well as the lack of expertise needed to produce and export competitive goods, have not been able to make significant progress in economic growth and development. Therefore, it seems that in these countries, development can be realized with social progress by paying attention to the issue of education and the basic needs of human resources in order to form and develop human capital. Investing more in human power has increased the level of productivity of production factors and technological development, and in this way, it is able to provide the necessary ground for the development of international trade and to achieve higher economic growth.
Methodology
In this research, the statistics related to social progress and GDP per capita in 27 member countries of the Organization of Islamic Cooperation, which are respectively taken from the social progress index and the World Bank in the years 2012 to 2021, have been used. In order to investigate the relationship between social progress and GDP, the simultaneous equation system approach in the form of the three-stage least square method (3SLS) has been applied` using Stata software. In the application of the system of simultaneous equations, it is necessary to have two recognizability conditions, which include the degree and rank condition. For this purpose, before estimating the model, these conditions have been examined first, and then preliminary tests of the model specification, such as the cross-sectional correlation test in the disturbance component, the unit root test of the combined data, the cointegration and endogeneity test have been performed.
Findings
The results of the data estimation over the period showed that in the model of GDP, social progress index, economic freedom and government consumption expenditure have an increasing and significant effect on the GDP per capita of the studied countries. The trade openness variable also has a negative and non-significant effect on GDP per capita. In the model related to the social progress index, the global innovation index, education index and GDP per capita have a positive and significant effect on the social progress index. The urban population variable also has a negative and insignificant effect on the social progress index.
Discussion and Conclusion
The results of the model estimation show that the social progress index variable in the per capita GDP model has the greatest impact on the per capita GDP among other influencing variables. The contribution of social progress into the performance of the economy and development process can be considered through reducing inequality and poverty, increasing market efficiency, economic growth, reducing costs, increasing the efficiency of human resources and capital, creating economic institutions and organizations and improving their performance, and increasing investment and employment, as well as increasing innovation and technology. The results of the estimation of the social progress index model also show the presence of a positive and significant effect of GDP per capita on the social progress index. In other words, with the increase of GDP per capita, many basic human needs such as nutrition and health care, water, health, shelter and personal safety, which is one of the indicators of social progress, are improved. In addition, in the mentioned model, the education index among other influential variables has more weight in influencing the social progress index. In other words, manpower training improves welfare infrastructure as well as opportunities, which are two dimensions of the social progress index. Finally, according to the results obtained from both models, which confirm the existence of a positive and significant relationship between the social progress index and GDP per capita, it can be concluded that there is a complementary relationship between these two variables
Achieving a high GDP requires an answer to the question of the factors that determine GDP. Social progress is one of the important and influential factors on the GDP. The Social Development Index is a scale for measuring social well-being, which is a completely new way of looking at well-being among countries in the world without referring to GDP. On the other hand, considering the fact that economic and social indicators must be improved as preconditions for increased living standards, which would be only possible in the shadow of economic growth, assumes it as a critical component contributing into improvement of social indicators. In this study, the mutual relationship between social progress index and GDP per capita for selected member countries of the Organization of Islamic Cooperation, during the period of 2012-2021 is investigated. The countries studied in this research are: Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, Cameroon, Egypt, Guinea, Indonesia, Iran, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Malaysia, Mali, Mozambique, Niger, Nigeria, Oman, Pakistan, Saudi Arabia, Senegal, Tunisia, Turkey and UAE. Since the member countries of the Organization of Islamic Cooperation are developing countries, due to problems such as lack of human skills, inefficiency in production, lack of technological development, as well as the lack of expertise needed to produce and export competitive goods, have not been able to make significant progress in economic growth and development. Therefore, it seems that in these countries, development can be realized with social progress by paying attention to the issue of education and the basic needs of human resources in order to form and develop human capital. Investing more in human power has increased the level of productivity of production factors and technological development, and in this way, it is able to provide the necessary ground for the development of international trade and to achieve higher economic growth.
Methodology
In this research, the statistics related to social progress and GDP per capita in 27 member countries of the Organization of Islamic Cooperation, which are respectively taken from the social progress index and the World Bank in the years 2012 to 2021, have been used. In order to investigate the relationship between social progress and GDP, the simultaneous equation system approach in the form of the three-stage least square method (3SLS) has been applied` using Stata software. In the application of the system of simultaneous equations, it is necessary to have two recognizability conditions, which include the degree and rank condition. For this purpose, before estimating the model, these conditions have been examined first, and then preliminary tests of the model specification, such as the cross-sectional correlation test in the disturbance component, the unit root test of the combined data, the cointegration and endogeneity test have been performed.
Findings
The results of the data estimation over the period showed that in the model of GDP, social progress index, economic freedom and government consumption expenditure have an increasing and significant effect on the GDP per capita of the studied countries. The trade openness variable also has a negative and non-significant effect on GDP per capita. In the model related to the social progress index, the global innovation index, education index and GDP per capita have a positive and significant effect on the social progress index. The urban population variable also has a negative and insignificant effect on the social progress index.
Discussion and Conclusion
The results of the model estimation show that the social progress index variable in the per capita GDP model has the greatest impact on the per capita GDP among other influencing variables. The contribution of social progress into the performance of the economy and development process can be considered through reducing inequality and poverty, increasing market efficiency, economic growth, reducing costs, increasing the efficiency of human resources and capital, creating economic institutions and organizations and improving their performance, and increasing investment and employment, as well as increasing innovation and technology. The results of the estimation of the social progress index model also show the presence of a positive and significant effect of GDP per capita on the social progress index. In other words, with the increase of GDP per capita, many basic human needs such as nutrition and health care, water, health, shelter and personal safety, which is one of the indicators of social progress, are improved. In addition, in the mentioned model, the education index among other influential variables has more weight in influencing the social progress index. In other words, manpower training improves welfare infrastructure as well as opportunities, which are two dimensions of the social progress index. Finally, according to the results obtained from both models, which confirm the existence of a positive and significant relationship between the social progress index and GDP per capita, it can be concluded that there is a complementary relationship between these two variables
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