Journal of Iran's Economic Essays; an Islamic approach
Year:2005 | Volume:2 | Issue:3|Papers Count:6

Price risk management is one of the most important subjects for economists. In this respect, hedging is one way of adjusting and declining risk. Generally, in all the world, price of agricultural products has maney fluctuations. This is so because of the nature of its demand and supply. Therefore The price fluctuation is one of the most important reasons for establishing futures markets.To establish commodity exchange, first of all, we need to know how it works, what are its characteristics, instruments and institutions, What are the operational, survaliances and legal framework of the commodity exchange. In this paper, we introduce commodity exchange and its characteristics .Then the instruments such as futures and forward contracts and options will be introduced. Legal, institutional & surveliance framework of the commodity exchange will be studied. Then, we introduce the entrance indices of commodities to the exchange .In the last section, we investigate the consequences of establishing commodity exchange in Iran.

The aim of this study is to assess the role of Total factor Productivity (TFP) growth, Labor growth and physical capital growth on of the Service Sector growth of the economy of Iran by applying production function for the period 1338-1383. The main finding are as follows: 1. The sources of the service of sector of the growth of Iranian economic in the period of thirth, forth and fifth development plan before the Islamic revolution of Iran (1342-1356) are physical capital and labor growth rate respectively. In other words, the service sector growth rate of Iran in this period confirms the exogenous growth model.2. The sources of service sector of the growth of Iran in the period of the first, second and thirth economic, social and cultural development plan of Islamic republic of Iran (1368-1383) are physical capital, labor and TFP growth rate respectively TFP growth, labor, productivity growth physical capital 3. productivity growth and service sector growth has fluctuated many for the period 1342-1356 and 1368-1383.

It was believed that the main obstacle for the development of under developed countries is the lack of capital, and therefore, they are trapped in the vicious circle of under development and except for injecting capital from abroad, they have no other way out from this vicious circle.But today this view is quite changed, and also capital is the necessary condition for development; it is not the sufficient condition; because those developing countries which have many natural resources and God given wealth and adequate capital, have proven that they can develop even with a limited amount of capital. One of the suitable methods for achieving development is to use efficient financial systems to mobilize the small-but numerous- idle capital available across the country, because these efficient financial systems can mobilize private' savings and allocate them to productive investments through their own systems, while facilitating the transaction of goods and services, will reduce the risk and capital expenses, and at last, by compiling capital and  technical innovation, create job opportunity and increase income capacities.The Micro Financial Institutions as a part of monetary and credit system of the country can play an important role in this regard. They can play a complimentary role in mobilization of financial resources, specially the idle money resources available in rural area, and the allocation of these funds (the Grameen Bank of Bangladesh is a good example of this method). Therefore, the  settling down these institutions has a very high priority in development plans of monetary sector of the country. In this study, by reviewing the performance and successful experiences of Grameen Bank of Bangladesh and interest-free funds (gharz al hasana) in Iran and comparing their degree of influence, financial self-sufficiency, the ratio of deposits to loans, value added to given credits, and value added to the number of staff, I try to find suitable solutions for the problems facing Micro Finance in our rural sector of the country. Thus, the purpose of this study is the understanding the cost-benefit of these two applied models of Micro Finance, and introducing an applicable model for our country. The study shows that the influence indicator, self sufficiency and the ratio of value added to credits of interest-free funds of rural areas in Iran are very smaller than those of Grameen Bank of Bangladesh.

The Results of the research made to examine the efficiency of commercial banks show that performance of such banks like Saderat and sepah is not satisfactory. The main factors of the efficiency of the aforementioned banks have been reviewed in this essay. Among these factors are:1. their main concern of attractiong more and more deposits, 2. most banks seek to increase their basic finance, and 3. the policy - making of the banks on working force is not as good as it should be.The article then investigates the environmental and institutional factors which contribute to Improving the banking system. It is noticed that the economical and political circumstances impose a lot of restrictions on banks. The presemet rules of the banking system in Iran cannot ensure rights for depositors. Therefore, it is necessary to give special attention to improving the rules of banking system and institutional conditions, which is part of the reforming process in the financial system in Iran.

Searching for policies to cut the current account deficit on one hand and improving the foreign balance of payments on the other, is one of the major tasks of every country's financial authorities. However, the interrelationships of trade, financial and exchange rate policies have made research in such fields cumbersome. Therefore, the knowledge of such bilateral relations paves the way for setting up macroeconomic policies in obtaining a well behaved foreign trade sector.The purpose of this study is to evaluate the short run and the long run relationships of the factors affecting trade deficits during the period 1338-1380. The results indicate that there exists a long run interactive relation between the real budget deficit and the current account deficit. Secondly, implementing the devaluation of the home currency has not been a useful policy to cut the current account deficit.