Journal of Economic Research
Year:2007 | Volume:- | Issue:80|Papers Count:12

Although economists and entrepreneurs had been aware of the impact of economies of scale on average cost, no comprehensive theory was introduced until 1950s.Economies of scale are used by economist as a practical measure for evaluating the extent of competition (monopoly) in real markets. There are two primary aims of this paper: 1) To introduce theoretical aspects of economies of scale, 2) To investigate the extent of exploitation of economies in manufacturing sector of Iranian economy. This study found that firms in Iranian Economy did not gain economies of scale. This result can be explained by the small size of firms.Furthermore empirical evidence from this study suggests that there is a conflict between economies of scale and competition in manufacturing sector of Iran. In addition, there is an association between firm size and rate of return namely, the closer the firm size is to MES, the larger the firm return.

This study is an attempt to develop a model of the simultaneous structure of the aggregate dynamic supply and demand to be used for estimation of parameters from data related to Iran's Economy. The method for developing the model is an application of the dynamic and simultaneous process of aggregate supply and demand. Obtained differential equations are used for solve the model. To estimate the coefficients of the model and comparing the results with theoretical expectations of the model, Generalized Method of Moment (GMM) in econometrics Supplied.These results have met all the expectations with an acceptable accuracy margin and in the analytical part of this article the economic data of Iran is reflected on accordingly. The final results have identified four various business cycles of expansion and contraction from 1980 on.

This paper studies the effects of six factors including industry type, size, age, ratio of capital to total assets, ratio of debts to assets, and advertising costs on profitability of com companies accepted in TSE. Profitability is defined at the three standard levels of ROA, ROAT, and ROE. The sample used in this research belongs to the companies which are accepted in TSE vy Feb. 2001, and they maintained their member in TSE during the period of this research.Multiple regressions with dummy variable are used to test the hypotheses. Findings indicate that if the three criterias of profitability, ROA, ROAT and ROE are defined, then size, ratio of capital to total asset, and ratio debts to assets can affects the profitability of the company, but, industry type, company age, and advertising cost have no affect on its profitability. Morever, if the criteria of rate of return on capital istaken into account, industry type, and size of company will affect the profitability of company, but age, the ratio of capital to total assets, the ratio of debt to total assets, and advertising costs have no effect on its profitability.

The existence of asymmetric information leads to adverse selection. In the last decade alternative theories had been theories had been developed to prevent it in markets especially insurance markets. According to these theories insurers can categorize their customers using insurance market signaling to avoid adverse selection externalities such as cross-subsidizing among customers with different risk levels.The present study utilizes connected data and testing the signaling and cross subsidizing hypothesis in the IACIM (Iranian Automobile Collision Insurance Market). The results show that the hypothesis of the existence of signaling mechanism in automobile collision insurance market could not be rejected but the hypothesis of the existence of cross-subsidizing customers with different risk levels on the criterion of deductible premium level was rejected.

Within the early theories of FDI and multinational firms, FDI and foreign trade were considered to be substitutes. New international trade theories emphasize, however the complementary relationship between FDI and foreign trade. This is the result of introducing new aspects in the models like increasing returns to scale, product differentiation and technology-differences among nations. This paper studies empirically the impact of foreign trade on FDI, using data on inward FDI to EU, ASEAN, ECG and Ds member from 1996 through 2005. The results show that there is a complementary relationship between trade and FDI Beside trade, GDP, Exchange rate and some convergences variable are influence son FDI.

The relationship between inflation and unemployment which is known as the "Phillips curve" in economic literature created long history of debate among different schools of thought In this article, based on the idea of rational as well as adaptive expectations, we examine this relationship in the Iranian economy for the periods 1959-2004. Here, by using the moving average method within the context of the above two mentioned perspectives and by using a "complex index" method as a measure of the supply shocks, the Iranian economy will be evaluated.The results illustrate that adaptive expectations works. 10 other words, it verifies that there should be an inverse relationship between inflation and unemployment in the short run, although the long run trade-otfbetween these two indicators of the well being of the economy will be vanished.

In this paper using the ''rate of return to scale" and "elasticity of factor substitution' as two determinants of the job creation power of investment, I have firstly tried to provide a theoretical frame work to explain this issue. Then I have empirically investigated and tested the role of "rate of return to scale" and "elasticity of factor substitution" investigated the job creation power of investigated Iran manufacturing sub-sectors.In this study, it is assumed that if the rate of return to scale is increasing and the elasticity of factor substitution is low, the positive effect of investment on job creation will be high. Based on this assumption, all the manufacturing sub-sectors have been categorized. The labor demand function is also estimated for all manufacturing sub-sectors during 1970-2004 to calculate the direct effect of investigated on employment The results reveal that the manufacturing of textile, wearing apparel and leather product (code 32), manufacturing of food, beverage and tobacco products (code 31), manufacturing of machinery, equipment, and metal instruments and products (code 38), manufacturing of basic metals (code 37), manufacturing of paper, publishing and printing (code 34), manufacturing of wood and products of wood (code 33), manufacturing of chemical products (code 35), manufacturing of non- metallic mineral products (code 36) which have respectively the higher ranks have experienced the highest effect of manufacturing employment.

Flowing the Uruguay Round negotiations (1986-1994), the World trade system has evolved. On the basis of agreements of this round, World trade organization (WTO) members have been obligated to decrease tariff obstacles, non-tariff restrains and trade supports. The use of trade liberalizing policies (tariff obstacles and nontariff. restrains) by members and observing countries has had significant impacts on different economic sectors. Iran's tariff and non-tariff restrains are the main obstacles fur joining the WTO. In second and third development programs the Iranian Government has adapted the trade liberalizing policies such as tariffs reduction and elimination of non-tariffs; but the complete joining needs revising tariffs and non-tariffs restrains.In this study, we surveyed the Impacts of Iran joining the WTO on employment and value-added through designing the Computable General Equilibrium (CGE) Model and using SAM Matrix (2001, 1380). With solving the model in GAMS software, we found that decreasing, tariffs would increase employment and value-added of .Natural Resources Based Industries) including oil and gas, mines, and chemical industries, and would decrease services and agricultural activities. In all, the findings of the current study indicate that total employment would decrease significantly if iran joins WTO.

The growing trend of the globalization process and how to deal with this phenomenon has become a major challenge for countries around the world in general and the developing countries in particular. The knowledge of comparative advantages and disadvantages of the home industries could be of great help to the countries trying to join the World Trade Organization (WTO). In this article an attempt has been made to compute the comparative advantage and the competitiveness of the Tabriz Petrochemical Complex in Iran. Using the Unit Cost Ratio approach the findings of this research show that the Tabriz plant can compete in domestic markets as well as foreign markets. However, If Iran joins the WTO, the plant can not compete with its rivals. If the opportunity cost of capital is taken into account the complex can neither compete in domestic markets nor in the markets abroad The Price distortions analyses show that the government policies have been channeled to protect this firm Such protections have increased the competitiveness of this firm by 33%.

I am going to assess shortcomings of Transaction Cost Economics (TCE) of Oliver Williamson My argument is that this analysis suffers from misidentification of the relevant problem of the theory, analytical incoherence, inconsistent empirical support and methodological defects. In formulating Coase's fundamental idea, Williamson accepts an efficient equilibrium which occurs once forever, thus he can not identify the main 'problem of organization theory and he can not explain the evolution of organization and society as a whole. His analytical problem originates from rationality presumption. He accepts rationality IS bounded and as a consequence all contracts are incomplete. But he argues that rationality is not so bounded that agents are not able to choose the best and less costly incomplete contracts via their farsightedness. Despite the well-known claim that TCE are supported by vast empirical studies, deep reviews of literature show that empirical evidence does not corroborate TCE hypothesis who wholeheartedly. Even if this claim is true and TCE hypothesis and predictions are confirmed by empirical data, (1) this does not mean transaction costs are minimized and (2) deriving policy implication for improving organization and society is impossible yet. From methodological point of view, this approach assumes Systems are close, and establish fix relations among variables. From this instrumental point of view reality is constrained to empirical and observable areas, and because of this view understanding observed reality and casual power of unobservable reality is impossible.