JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH
Year:2018 | Volume:8 | Issue:32 |Papers Count:11

Investigation of factors that affect economic growth has been always attractive. Foreign direct investment is one of the variables that have potential effects on growth. This study carried out to investigate the impact of foreign direct investment on economic growth. We consider the role of natural resources using panel threshold regression model for 1996 to 2015 period and also emphasis on relationship between foreign direct investment and economic growth in Iran by Markov Switching Approach for 1976-2015. Panel threshold regression model formed based on Hansen’ s (1999) suggested model then that estimated by Wang’ s (2015) proposed method for fixed effect models. Results of threshold regression model showed that natural resources, domestic capital formation, population growth rate and governance indicator has statistically significant effect on economic growth. Threshold level for natural resources is 28. 58 percentages. Foreign direct investment variable has different effect on economic growth in regimes. In first regime foreign direct investment increase economic growth but in second regime, that natural resources is more than threshold level, it decrease growth rate. Results of tow regimes Auto-Regressive Markov Switching model for Iran showed that foreign direct investment in recession regime is insignificant but this variable in boom regime has statistically significant effect and this relationship is negative.

Greenhouse gas emission abatement is an important issue at the center of attention worldwide with the aim of achieving sustainable economic growth. One of the policies put forward in this area is to subsidize investment in research and development and to levy tax on fossil fuels in order to make appropriate technical changes to reduce greenhouse gas emissions. The present paper determines the subsidy rate for investment in research and development to double it with using a computable general equilibrium model. It considers in the first scenarios subsidy payment for investment and in the second scenarios subsidy payment along with, the taxation of fossil fuel consumption. It then examines the economic, welfare and environmental impacts of these policies. The results of modeling and calibration show that in the first scenario, the subsidy rate for investment in research and development is 9. 4% and in the second scenario it is 9. 1%. Meanwhile, the tax rate for fossil fuels in the second scenario is 2. 5%. The results indicate a reduction in welfare in both scenarios, regardless of the social gains of reducing emissions. The results also show that both the energy tax policy, and research and development subsidy policy is able to reduce energy consumption and air pollution.

Inclusive growth creates equal opportunities for those who contribute to economic growth, so that the whole people could contribute to economic growth and benefit from it. In this research, we applied Anand et al. integrated method and social mobility index to measure inclusive growth. The integrated method allows us to identify the determinants of growth and prioritize the specific constraints of each country in generating inclusive growth. We utilized unbalanced panel data method for the period 1995-2015. The results indicate that GDP growth is the most important determinants of inclusive growth in the Islamic countries. Inflation control, human capital improvement, investment, government consumption and trade openness, positively affect inclusive growth in Islamic countries. However, the ratio of bank credits to GDP and foreign direct investment did not have a positive effect on the growth of Islamic countries.

Sustainable development is a very broad concept, and achieving it, is a guarantee of the sustainable welfare of societies. On the other hand, income distribution affects many of sustainable development indicators. As a result, investigating the relationship between the two is essential. Based on this importance, the relationship between these two variables was the goal of this study. The Gini coefficient is selected as the independent variable and the composite index of sustainable development (combination of sustainability of human, physical and environmental capital) as the dependent variable of the research. In order to answer the research question, a panel data regression model for the Iran's provinces during 2008-2014 and using FGLS method have been used. The results show that the relationship between income inequality and composite index of sustainable development is negative and significant. The results also show that the effect of GDP growth rate and energy intensity on the dependent variable of the model was positive and negative and statistically significant respectively. While the impact of industry structure and urbanization rate is not statistically significant. Regarding the results of the regression model, we can reduce the inequality in order to attain sustainable development.

Economic growth is considered as one of the most important goals of the economy and has an undeniable effect on improving the welfare of the community. Knowing the factors affecting economic growth has always been an issue for economists. Several factors such as promoting labor force productivity, capital accumulation, government's expenditures, technological progress, as well as fiscal illusions affect economic growth. Fiscal illusion is the source of distrust between the government and the people, which influences the economic growth through the channel of state budget and tax revenues. The purpose of this study is to investigate the relationship between fiscal illusions and economic growth in Iran during the period of 1978-2014. The study consists of two steps: firstly, the fiscal illusions in the context of the model of LISRE software (Linear Structural Relationships) are determined and measured by the data given from the Central Bank and the Statistics Center of Iran during the years of 1978-2014. The results indicate that the most important determinant of the size of fiscal illusions in Iran is the tax burden that policy makers try to conceal by creating government debt illusions and illusions of private sector expenditures on public debt levels. In the second step, after estimating the fiscal illusion, its relationship with economic growth has been investigated using the ARDL model. The findings of the test show that fiscal illusions have a negative and significant effect on the economic growth in Iran in both short and long terms.

Using Markov Switching model, this paper studies the nonlinear effect of oil price volatility on investment in Iran as an oil-rich country for the period 1984: 1-2015: 4. More specifically, it examines whether the oil price volatility has asymmetric effect on investment. To approach this goal, volatility of OPEC oil price is estimated by Exponential GARCH (EGARCH) model. The results of Markov-switching model with FTP approach indicate that the effects of oil shocks on investment behavior are separable into two regimes. In other words, the impacts of oil shocks on investment in Iran economy over the booms and recessions are asymmetric. Moreover, our finding shows sanctions imposed by the US against Iran affect investment behavior negatively. We also find that 2008 financial crisis doesn’ t affect investment decision. Furthermore, we find out that an improvement in the institutional quality enhances the investment demand. Our findings might have important policy implications for government in Iran. It also provide essential information for companies.

In this paper, government expenditure productivity has been studied in selected countries that are member in Organization of Petroleum Exporting Countries (OPEC) and optimum threshold government size of these countries is determined. For this reason, endogenous Barrow growth model is used that practically applied by Karras. Panel data threshold approach is applied. The reason for selecting these countries for study is that these countries have the same government financial structure such that a high share of budget of these countries depend on the oil revenue. According to available data, eight countries are selected and the period under study is from 2000 to 2014. Estimation findings show that optimum threshold government size of these countries have been estimated 13/58. In addition, findings indicate that before the threshold government size, the productivity of government size has been positive and approximately 0/72 and after the threshold government size, the productivity of government size has been negative and approximately-0/23.

This paper investigated the probability of employment of mothers and children (aged 10– 18) in Iranian urban household and the factors which influence them with expansion of neoclassic model. Bprobit model and the Stata Software were used to that end. The sample size includes 6517 Iranian urban households (in 2014) who had children aged 10– 18. The data was extracted from the Urban Household National Survey. 46. 4% of the sample are females and 54. 6% are males. 93. 97% of children are unemployed and 6. 03% are employed. The results showed that children do not necessarily drop out of school to work and be employed. An increase in the level of education of parents negatively influences the employment of the children aged 10– 18, and the effect of father’ s education is more decisive in this regard. Furthermore, the increasing of father’ s education reduces the possibility of mother’ s employment in this household. The substitution effect showed that mother’ s and child’ s employment are substitutes, as is father’ s employment with mother’ s and child’ s employment. The wealth effect showed that an increase in household per capita income reduces the possibility of children’ s employment and raises the possibility of mother’ s employment. Furthermore, the size of the family reduces the possibility of mother’ s employment and raises the possibility of children’ s employment.

Export is one of the important factors affecting the production of various sectors of the economy. Therefore, this study examines the effect of export change on the production of sectors in Iran during 2006-2011 using input-output analysis. In order to achieve this goal, the country's input-output tables have been used in the years 2006 and 2011 and the structural decomposition analysis (SDA) technique has been used. Based on this technique, the total change in the country's exports is divided into two factors: the change in the total volume of exports (with a constant export structure) and the changes in structure of exports (with a constant volume of exports). The results show that the change in the structure of exports (with the constant amount of exports) increased the production of the economy by 51947. 51 billion Rials. Also, changes in the volume of exports (with a constant export structure) has led to 1270999. 65 billion Rials increase in the total output of economy. The total change in exports (summation of volume change and structure change effect) has also led to an increase 1322947. 16 billion Rials in total output of the economy.

The main objective of this study was to investigate the short-term and long-term relationship between state fiscal policy (changes in capital and current expenditure) and social welfare. To this purpose, variables such as GDP, the Gini coefficient, the current and capital expenditures of government and social welfare which have been achieved by converting the homogeneous Amartya Sen, are considered for the period 1971-2014. The result of Bound ARDL testing approach (has been extended by Pesaran and colleagues 2001), shows that although there is a direct relation between capital and current expenditure and social welfare in short-term, the social welfare has inverse relation with current expenditures and economic growth. The result also indicates a direct relation between social welfare and capital expenditure in long-term. These findings are consistent with the stylized facts of fiscal policy in Iran, including government capital expenditure budget failure to meet development goals and bring prosperity due to the fluctuations of the construction budget, delay in construction projects, incorrect selection of projects. Other results revealed that social welfare variable responses to short-term fluctuations in capital and current expenditure and economic growth and to distortion from long term equilibrium trends in the previous period of social welfare.