Journal of Quantitative Economics
Year:2012 | Volume:9 | Issue:2 (33)|Papers Count:9

FDI is counted as one of important factors of growth and economic development in host countries that has had increasing process recently. Determinants recognition of FDI can be useful for developing countries. This paper considers determinants of FDI in 209 countries during 1980-2007. Mentioned analysis has estimated with fixed effect method for separating special differences and has estimated regional special effect too. The findings of a econometric analysis indicated that the degree of openness, rate of capital return, infrastructure quality, human capital and lag of FDI are significant and have positive effect on FDI, but government expenditure, corruption, political risk, inflation and liquidity are insignificant.

The main purpose of this research is to measure technical efficiency of Iranian manufacturing sector by Stochastic Frontier Approach (SFA). For this porpoise, the performance of 130 different industrial groups, at The International Standard Industrial Classification (ISIC) was analyzed and discussed during 1996-2007. The results of the study showed that average technical efficiencies of different manufacturing groups were 0.55. The largest score in efficiency was found for copper metals manufacturing and refined petroleum products manufacturing with 0.83 and 0.78, and the lowes scores in efficiency was registed for brick production manufacturing and grain mill products Manufacturing with 0.21 and 0.23, respectively. Average of technical efficiency is laid in range of 0.50 to 0/60. In addition, the output inefficiencies are directly related to energy intensity and inversely to the size of firms, while government ownership does not affect the level of inefficiency.

This article has developed a Ramsey type model of economic growth in which the engine of growth is public capital accumulation. Public capital is hired by the government for producing public good and services that used as input in aggregate production function. This provides the justification for the existence of the government. Benevolent government, seeking to provide an efficient level of inputs for production function, is to be competitive so that public and private marginal product of capital is equal. In a self-seeking government corruption is defined as monopoly rents extracted from the private sector through the supply of the public inputs. Rantier government income is defined as the deference between the government's revenue for the supply of the public inputs minus the cost of providing the public inputs.Theoretical result showed that in steady state both per capita consumption and output and growth rate are higher in the benevolent case instead of rantier government. Empirical results of growth model simulation in Iran economy demonstrated that with deferent level of government inefficiency in a transitional dynamic from rantier to benevolent government may increase the growth rate from 1.2 to 2.6 percent.

In this paper, electricy price was predetermined after a disequilibrium shock using hill climbing optimization method. For this purpose, initially we modeled the power market using system dynamics approach, then optimal quantity supplied, optimal quantity demanded and equilibrium price are determined applying optimal linear programming model. The system dynamics model was run for one day and one month (August) in 2010 with VENSIM simulation software. To this end, we assumed market equilibrium and fixed capacity of domestic plants as well as a five percent rise in demand. The results showed that only in one-month period with the possibility of raising import, the market will clear.If so, the equilibrium price will be 299.92 rial/kwh and supply and demand will clear at 16462.7 kwh.

In this paper, the monetary approach to exchange rate was analyzed through panel cointegration method for the selected Persian Gulf countries in comparison with Organization for Economic Co-operation and Development (OECD) countries for the period of 1989-2005. For this purpose, we apply monetary flexible price model. The results suggested that the establishment of monetary approach to exchange rate in both group of countries and supported the existence of a cointegration relationship among the variables. Moreover, according to different economic structure of both groups of countries, the severity efficacy of variable to exchange rate is different. The results also showed that GDP with negative effect has greatest influence on the change of exchange rate. This implies that adaptation of proper policy to increase GDP not only cause to decline exchange rate, but also has positive effects on GDP. Other variables which determine the trend of exchange rate are money supply and expected inflation rate.

In any period of time and economic condition, specific monetary and fiscal policies are used. Hence the influence of monetary policy depending on the adopted monetary instruments is different. But the important issue is the impact of monetary policy on other parts of the economy. One of the foeffective factor monetary policy is exchange rate. The aim of this study is to examine the relevance and effectiveness of monetary policy on exchange rates using annual time series of 1989-2007 and auto regressive distributed lag method (ARDL). The results of this study indicated that the effect of monetary policy on exchange rates is positive and significant in the long term. National income have a significant negative impact on exchange rates. While the impact of unstable fluctuations of exchange rates and consumer price indexes on the exchange rate are not significant. In short term, monetary policy after one lag period and unst exchange rates.Unstable fluctuations of exchange rate have significantly positive effect on exchange rates, while national income and consumer price index have significantly negative effect on exchange rates.

Trade and trade policies can have a major impact on economic productivity. In fact trade freedom policies tend to improve economic efficiency and bring about a better allocation of resources through enhanced competition for the economy as a whole. In this study the role of trade liberalization in improving total factor productivity has been studied. The hypothesis tested is that trade liberalization has a positive impact on productivity. The countries studied to test the hypothesis are a group of Islamic countries which are members of the Organization of Islamic Conference (OIC). The data covers the period between 1985 and 2002. We used the ratio of exports plus imports to GDP for each country as an index for trade liberalization. The model used in the study is based on the work done by Miller and Apadiya using a panel data approach. The results indicated that trade liberalization among the selected Islamic countries has had a major impact on the total factor productivity (TFP). Other than economic freedom, variables such as inflation, human capital and price deviations from PPP also showed to have a significant impact on the total factor productivity of the countries during the period of the study.

This Study evaluated the effectiveness of economical policies on poverty from 1999 to 2007 using panel data. For this purpose Sen Index has been used. This index includes the information about the number of poor people, how income distributed and income gap.The findings of this research indicated that poverty has been declined during 1999-2007. During the first and second development programs, poverty was more severe and volatile by launching of the third development program, poverty has been reduced gradually in all areas. Approximately, during these years, poverty in areas like Charmahal and Bakhtiari, Kohkilouieh and Boyer Ahmad as well as Sistan and Baluchistan was at the highest level, while it was at the lowest level in Tehran, Isfahan and Qom compared to other provinces. The results also showed that protective, trading and budgeting policies had no significant effect on reducing poverty under the studied period, but fisical policies (tax) had significant effect on poverty.