Journal of Iran's Economic Essays; an Islamic approach
Year:2004 | Volume:1 | Issue:1|Papers Count:7

To motivate the growth of the economic sectors in question, the Iranian government has at its command various means of direct intervention and economic policy-makings. The development of both manufacturing sector and industrialization has been the government's main long-standing objective. However, the economic structure in Iran has imposed severe restrictions on the   application of the quantity monetary policies, and in the last few decades the means of quality, monetary policies like bank credits have played a significant role in controlling the economic sectors. In the case when monetary and financial markets undergo regression, these bank credits are considered among the main sources of financing manufacturing businesses. This article deals with the relationship between the credit policy in the manufacturing sector and the other monetary and financial policies. The use of the model-building method of VAR based on long-term convergence besides the constituents of error correction provide definite and clear results of the relationship between the bank credits and the value added in the manufacturing sectors. On the whole, the results suggest that there is a very strong positive relation between the bank credits and the value added in the manufacturing sectors which, in turn, shows the intensive dependence of industrial production on this policy-making variable adopted by the government.    

Although Iranian economy has been well-known as an oil-exporting one, recently the emphasis on promoting non-oil exports has become Iran's crucial strategy for its development goals. Undoubtedly, this new conducted strategy can reduce fluctuations in foreign exchange earnings, improve the balance of payments and positively affect employment. Meanwhile, there is a need to make investment in different era of economic sectors. The main objective of this paper is to investigate the impact of the total investment on the supply of Iran's non-oil exports during 1961 - 2001. The paper tests the assumption that investment in long-run has a positive effect on non-oil exports, while in the short-run its effect is limited. Specifying a theoretical framework, we can estimate the long-run equation of the non-oil exports by applying the ARDL and estimate the short-run equation by applying ECM. Overall results reveal that all variables of investment, effective export exchange rate and the relative export price have significantly positive effects on exports in the long-run, while the effect which consumption has is negative. In addition, a research based upon the error correction method (ECM) shows that the aforementioned ,variables including aggregate investment can significantly affect non-oil exports in the short-run but in the long-run their effects are much

Enhancing the efficiency 'of income distribution in the society by the government should be preceded by an inquiry about the targeted groups and this step is, without doubt, of great importance. Unfortunately, neither direct nor indirect attention is given to it. Making use of a simple logit model and relying on the information obtained about the incomes of rural families in the year 2000, the author makes an indirect study of the factors affecting the poverty of rural working families in the country. The results show that in the case of farmers, the large number of family members as well as low income has a remarkable role in the likeliness of poverty and their significance is greater than that of the social and the geographical variables. In the case of those who work as employees, the illiteracy of the head of the family in addition to low income have as remarkable a role as that of the first group. The probability of poverty among the families whose heads work in the private sector is less than that among the families whose heads work in the cooperative sector. The major variable affecting the poverty of the families whose head is engaged in free jobs is low family income which, in comparison with other groups, has a higher coefficient. In this very group, too, the probability of poverty among those who have productive jobs is higher than that among those who work in the service sector  greater.  

Inflation and unemployment are two important economic problems and undoubtedly they result in heavy direct and indirect economic costs. Also, finding the factors which generate them is also important. One of the main factors which exert heavy affect on macroeconomic variables in the developing countries is transaction costs. Iran's economy structure has a lot of transaction costs. This paper reviews the effects of transaction costs on stagflation. The role of transaction costs in the generation of stagflation is expounded within the framework of an economic model. For this purpose, a simultaneous equation system is designed and it is estimated by 3s1sand correction error method. The results show that transaction costs have a positive effect on unemployment and inflation simultaneously and on their emergence in Iran's economy. The simulation results also show that the relationship between inflation and unemployment has a negative effect.    

The term core inflation which means identifying inflation-targeting Policies came to use in the last decade. With the help of this concept, i. e. core inflation, proposed policies can control inflation exerting any no negative effect on production. Various methods have been suggested for assessing core inflation, including many statistic methods and economic methods. Due to the fact that the term core inflation is commonly used in the developing countries, this research uses the structural vector autoregressive method to assess the core inflation in Iran, taking into consideration the special condition of its economy. By using the joint trends of the three variables, i.e. petroleum revenue, public expenditure and liquid assets, we can make a sharp distinction between core inflation and non core inflation. The results of this research show that inflation cannot be controlled without restricting the role of petroleum revenue and the vacillations related to it in deciding real variables like economic growth and policy- making variables like liquid assets and governmental expenditure, and also show that inflation can be controlled through political variables like public expenditure and liquid assets. The above mentioned procedures have no negative influence on economic growth.      

The article discusses three factors which affect the time allocation adapted by a godly person. These factors are as follows: 1. The desire to earn one's living through working 2. The role of the objectives and the motivation of these who are committed to the next world. 3. the importance of working It happens that some changes occur in the wages or in the relative prices of goods. In such a case the godly person replaces the activities which take time by actives that take less time. (The curve of the supply of labour of the person who seeks the Hereafter does not retrograde - at high level of wages - as much as it does in the case of the worldly person). On the other hand, a committed person faces restrictions which are not liable to change, and this phenomenon is more distinct when compared with the model of the worldly person. In addition to the necessity of observing the five precepts i.e. obligatory act, haraam act, recommended act, reprehensible act and permissible act, the means of making the contract should be given special attention too. For instance, some procedures like crop-sharing (muzara'a),silent partnership (mudharaba) and water- sharing take precedence over a hire contract.