Journal of Quantitative Economics
Year:2008 | Volume:5 | Issue:2|Papers Count:7

Brain drain as a migration of skilled and educated labor out of developing countries has been an important issue from centuries ago. In this study, we investigated the causes of brain drain from 30 developing countries to 16 other countries which are the members of OECD based on gravity model from 1991-2004. The result shows that the brain drain phenomenon is explainable based on gravity model. There are some effective pull and push factors in the source in the target countries such as difference in population, various condition of labor market like the amount of wages and unemployment, quality of life, social welfare, subsidies of education and participation of private sector in developing and OECD countries which are among the main causes of brain drain.

Correct assessment of consumption functoin and estimation of marginal propensity to consume will help policy makers to use right instruments in confrontiny economic problems such as inflation and recession. The aim of this research is to estimate and analyze shortrun and longrun consumption function for income groups via stimation of ARDL cointegration relation in the period under consideration, 1982-2006. Results of the study showed a significant cointegration relationship. Marginal propensity for consumption has been estimated for low income group 0.97, for high income group 0.66 and 0.81 for the whole group. Calculated marginal propesity to consume in shortrun is 0.55.

In general, social capital is collection of concepts such as, trust, formal and informal norms and networks which lead to optimum correlation and partnership between memberships of society. In this study, to identify the effects of social capital on the economic growth in Iran by using the Fucuyama index, factors such as ended dossiers of overdraft cheque and defalcation, and bribery per capita were used as substitutions proxy for social capital. We applied Microfit software and ARDL methodology to estimate augmented Solow model (MRW) that itself was augmented by Ishise and Sawada (2008) for the period of 1970-2006. Base on the results, shortrun and longrun coefficients in both models indicate adverse relation between reduction of social capital and economic growth in which the elasticity of GDP per capita toward overdraft cheques is -0.16 and for ended dossiers of defalcation, beribery is -0.06. Finaly, ECM coefficient in the overdraft cheques model is -0.79 and defalcation, beribery model is -0.86 which is significant and adjusted to steady state is highly. So in microlevel the friendly relation of parents with children and attention to their education as well as their acquaintance with religion and its instructions are necessary. Furthermore, macro - level suggests that the government against the extinctive factors for social capital act intensly and with creation of social security and conservation from the low land property and decreasing the rates of inflation and unemployment keep the peoples trust to government more than before.

In this article we conducted the production elasticity in separation of human capital and the other production elements to identify the importance of human capital versus physical capital in official and private sections.For this purpose, first we studied theoretical principles of the growth models and the related previous studies. Then a Human capital model presented by Mankiw-Romer and Weil was used to estimate Iran's economy during 1978-2006, by using auto regressive distributed lag (ARDL). We used the mean of the years as the human capital index. The results indicated that the rate of human capital is more than physical capital in official and private sectors in a shorttime and longtime of the production elasticity. The error turn coefficient (ETC) showed that in every period, %34 of inequality was modified in gross domestic production (GDP) and it is going towards the longtime current.

In this investigation, first the equation of food demand was estimated using an almost ideal demand system (AIDS) and the Iranian cross sectional survey of income expenditure in 2005. Because of the cross sectional form of the data, the prices were calculated as marginal or unit values. Then by applying the elasticities of food categories, nutrient elasticities were extracted using Lancaster technology of consumption. These elasticities are useful to the analysis of the effects of aid policy on food demand and nutrient consumption respectively, and show the effects of the change in one food category price or food expenditure on the availability of each nutrient. In this article, as demand equation is blocked-recursive simultaneous system and zero value is a dependent variable, we use seemingly unrelated regressions (SUR) and Tobit model.In another section, effects on demographic variables on food prices are examined. These variables are age, education, region, urban or rural and Percapita income. Results have shown that more food expenditure causes more food quality or food consumption and education, household size and other demographic variables are often effective on the quality of food.

This paper is to analyze the effect of corruption on economic growth through its effects on the level and composition of public expenditures and/or private sector investment. The main point here is that a different method was applied to reveal the corruption index. This method is based on the Principals Components Analysis. After the calculation of the corruption index through PCA, the relations between the variables are assessed through OLS and WLS methods. The findings show that the corruption has negative effect on economic growth; moreover, there is strong relation between the level of corruption and the level of private sector investment and/or the size of the public sector in Iran.

This paper discusses the state of new economy components in measuring the different industries (sorted by ISIC cods) efficiency in Iran during the period over 1995-2005.Data Envelopment Analysis (DEA) approache was applied to obtsin the results which showed that the efficiency in different industries is not the same. To determine the effects of new economy component on efficiency in this framework, by using pooling data method, we found that there is a positive effect for the following factors on efficiency: R & D expenditures, industry size, imported materials and private property share.