JOURNAL OF APPLIED ECONOMICS STUDIES IN IRAN
Year:2013 | Volume:1 | Issue:4|Papers Count:7

The Poverty measurement and its determinants are most important factors in poverty alleviation programs. In this survey, we estimate poverty line by using An Implicitly Directly Additive Demand System. This study used household data from the Statistics Center of Iran during the period of 1998-2009. We examine the main determinants of poverty Gap and the chance of being poverty for urban and rural households by Hechman model estimation.The results of Probit model revealed that age, level of educational attainment and the main activity of the head of the household, literacy rate of the household, Household size and ICT indices are the main determinants of chance of being poor. Also the results of OLS model show that Literacy rate and ratio of employees of the household, gender and level of educational attainment of the head of the household and source of income of the household are the main determinants of poverty Gap.

The literature on international economics and finance shows that the exchange rate regime is an important factor in macroeconomic performance through its effects on the balance of payments and inflation. In this paper, we analyze the exchange rate regime in Iran and estimate the degree of the central bank’s intervention in the exchange rate market. The paper follows three steps as follows: First, we calculate an index for the exchange rate intervention of the central bank. Second, we use the Markov Switching Model to identify the periods of interventions, and finally, we estimate the determinants of the interventions using a probit model. Our quarterly data covers the period 1378: 01-1387: 04 (1999-2008). The estimation results show that central bank intervention has increased in the periods 1378: 01-1380: 08, 1382: 01-1383: 04 and 1386: 01-1387: 12. Furthermore, the probit model estimation results indicate that inflation, domestic credit and the foreign exchange liabilities as a ratio of foreign exchange reserves are significant determinants of increasing intervention in the Iranian exchange rates market.

A fundamental issue in industrial organization theory is how different market structures affect economic performance and social welfare and what market structure is most conducive to innovation and technological progress? This paper aims to conduct a new empirical assessment of the Schumpeterian hypothesis asserting the advantage of monopoly structure over competition structure in raising R&D and technological progress. To this aim, a panel of 4-digit ISIC of Iranian industries data over the period 1995-2007 has been used. The findings of this study support the Schumpeterian hypothesis in Iranian large manufacturing industries in winch the more concentrated industries stimulate R&D expenditures and promote rapid technological progress.

Money and its effects on and from real variables are the key issues in macroeconomics. Many studies have been accomplished for investigating the interaction between money and real sectors. The over-parameterization is the vital problem in Vector Auto regression Models. This problem is appeared more seriously in the cases of data restriction and lack of adequate observations (such as IRAN) and deviate the predictions. Thus we should look for a way for decreasing the number of parameters and restricting the model. The Bayesian approach is a good way for this purpose. This article addresses the effects of monetary shocks on the key variables of macro economy such as GDP and price general level. According to the tests carried out, the SSVS prior is more suitable in BVAR model. By calculating the posterior function we compute the Impulse Response Function. According to IRFs a monetary shock tends to the increase of GDP and price level. But the response of price level is relatively more rapid and more persistent. Hence, however using an expansionary monetary policy tends to the increase of GDP in short-run, but its inflationary cost causes a continuous and long-run increasing of price level.

Given the importance of agriculture in the economic development and growth of developing country, including Iran, in this article, has been studied preferential trade agreement between Iran and European union as the biggest partnership for Iran, on Iran's trade flows and balance in agriculture. For this purpose, using a partial equilibrium SMART model, trade creation and diviation effects of trade is estimated in the agricultural sector of Iran and European Union member countries to reduce tariffs under the two scenarios (50 and 100 percent). The results of the agreement cause to increase trade volume and export agricultural products in Iran. Due to higher average agricultural tariffs of Iran to Europe, after the agreement, products import of Iran is more than export of this product and therefore trade balance will be negative. According to the designed scenarios, the most accessing of Iran will be to markets of Germany, Italy, Netherlands, France, Britain and Ireland.

In today’s world economy, the role of foreign direct investment (FDI) in enhancing economic growth and development is undeniable. The direct effects of foreign investments consist of: increase in capital stock, production, employment and welfare of the society. Foreign investments generate also indirect effects in the form of spillovers which stimulate the productivity of recipient countries’ firms. In this paper we are evaluating both direct and indirect effects of FDI entrance in one sector and its ensuing effects on other sectors of the economy. To observe these effects we have initiated a hypothetical scenario where the volume of foreign investment has doubled instantly in the industrial sector of Iran. Then through our Computable general equilibrium (CGE) model we have estimated the outcome of this boost in investment, on macro level variables such as GDP, Export and trade balance.

In this paper, we examine the relationship between wage and productivity using panel data analysis for Iranian manufacturing industries with 50 employees or more (between 1373 and 1386) and implementing nested Hurlin-Venet tests. The mentioned test as an extended Granger causality test is used for panel data with fixed effect according to the restrictions of available statistics.The results show that homogeneous non-causality from productivity to wage in most industries is accepted and rejected from wage to productivity. In other words, while wage changes affect significantly productivity (confirmation of wage efficiency theories) productivity changes do not have any significant impact on wage (rejection of classic theories) although the impacts are changed from one industry to another. Two industries, Basic metals and vehicles are exempted in which both of causalities are rejected and therefore there is not any significant causality between variables.