JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH
Year:2012 | Volume:2 | Issue:6|Papers Count:8

In this article, the relationship between capital structure and return on equity is examined. The relationship between capital structure and return on equity is of considerable importance to all firms and banks. The banking industry is especially sensitive to changes in financial leverage due to their low level of equity capital to total assets.This paper surveys the relationship between capital structure and return on equity. The results show that there is a positive relationship between financial leverage and the return on equity. The analysis is extended to determine the relationship between return on assets and equity capital. The evidence supports the hypothesis that there is a positive relationship between equity capital and return on assets.The result of article showed that there is a positive relationship between profitability and debt ratio.

One of the industries which may affect the law enforcement of subsidies targeting is rubber industries. One of the factors affecting product’s cost price is energy price and because product's cost price is the source of competitiveness for an industry in market so this research analyzes the effects of this law on competitiveness of the rubber industry's products.Generally, the concepts of competitive advantage and coefficients protection are used to analyze the effect of removal energy subsidies on competitiveness of Yazd rubber industry complex's products.The results indicate the existence of competitive cost in Radial and Tube factories before removal energy subsidies. After removal energy subsidies Tube's products maintained their competitive advantage but Radial's products have lost their competitive advantage. Bios products don’t have competitive advantage before and after removal energy subsidies.However, the Bios products are strongly supported and Radial's support is negligible and Tube productions are not protected at all.

In Lucas growth endogenous, we focus on human education that causes the weakness of decline return.Therefore the lack of autogenous technology cannot omit long term per capita growth.Human capital against autogenous growth model can be saved by investment i.e. people can choose how long they invest on education. So it is supposed that human capital is an accumulated input with fix return.Finally from the model concluded that in shortage of autogenous technical progress the long term growth rate can be explained by accumulation of human capital.In this paper it is tried to search the effect of human education on growth rate in Iran by Lucas growth endogenous.The model that has been used in this paper is estimated by time series of 1959-2007 and five steps co-integration approach of Johansson and Vector Error Correction Model.Finally, based on two obtained co-integrated vectors, it is concluded that in long term there is a positive relationship between index of knowledge oriented employment and increase of physical capital's accumulation on Iran's economic growth.In addition, both of these vectors show that knowledge oriented employment has been very influential in the economic growth of the country in the long term.

Each country would follow an economic paradigm which is constructed on ethical values and epistemological foundations. Taking lessons from existing vast amount of theoretical and empirical researches in neoclassic paradigm and taking views on consistency of it with Islamic doctrine can appear as a road map to catch Iran an economic development.In this paper, the consistency between Neoclassic and Islamic Paradigms in three fields-implicit assumptions, explicit assumptions, and development mechanisms- have been compared by the use of content analysis method.The results show that, against specific aspects, there is no basic consistency between Neoclassic and Islamic Paradigms.

One of the most well-known methods for explaining the growth in public sector is Wagner's law, which explains the growth of government size. Wagner argues that the more per capita income in economy, the bigger would be the government size. Using panel data method, this paper is analyzing Wagner's law for Iran and southeastern Asian countries. The results confirm the consistency of Wagner's law for both Iran and those selected countries.

Income distribution is one of the policymakers concerns. So it is important to investigate its determinants. Considering that financial development is one of the effective factors on income distribution, we decide to investigate its effect on income distribution during 1973-2008 using Autoregressive Distributed Lags (ARDL). Results show that the relationship between financial development and Gini coefficient is positive and reducing so support the Green-Jovanovic (1990) hypothesis. The relationship between GDP per capita and Gini coefficient is positive and reducing too. Also human capital has negative and significant impact and inflation has positive and significant impact on Gini coefficient. CUSUM and CUSUMSQ structural stability tests show that the estimated coefficients are stable over the studying period.

Economic development programs, especially in developing countries, as much as national economies interaction with the global economy, are affected by economic globalization process. It has also been shown that the national economies are seriously affected by this phenomenon. Economic development at the national level, without the active interaction with the global economy suffers a serious challenge. On the other hand, the development programs in developing countries are influenced by the size of government. Towards globalization, governments should take actions to create and promote a competitive environment. In too many studies, the impact of globalization on government size has been analyzed but the results have not been the same. In this paper, using panel data and econometric methods, the effects of globalization on the size of government in selected Asian countries (Indonesia, Thailand, Philippines, Malaysia and Iran) have been studied. The results show that economic globalization has not reduced the size of government in these selected countries.