NAMEH-YE-MOFID
Year:2005 | Volume:10 | Issue:5 (45 ECONOMICS)|Papers Count:8

Steel industry plays an important role in fostering development of nations. In view of Iran's efforts for joining the world trade organization (WTO) and this organization's concern for countries protection/protective structures, this study examines Iran's protection of steel industry amid its efforts for joining the WTO. In this research, net nominal rate of protection, total (NNRPT) method, a method approved by the World Bank, (Gorn. P, Hermann.R, Bankdikt. S 1993) is used.The findings show that although through its direct policies Iran protects the exportable and import competing steel industries but its indirect policies, as a whole causes this industry to remain unprotected.

Currency substitution refers to a situation where a nation citizens prefer to hold foreign currency, instead of domestic currency, in their asset portfolio. There are many reasons for the occurrence of currency substitutions. The major reasons are: persistent national currency depreciation, the continuation of high inflation, economic instability, a negative real interest rate capital flight due to legal and illegal migrations, and rise in the goods smuggling activities. This phenomenon is seen in both developed and developing countries. In developed countries currency substitution occurs asymmetrically and bilaterally. However, in developing countries currency substitution exists unilaterally reducing the effects of monetary policies. This paper compares the degree of Iran's currency substitution with degree of currency substitution in other 26 countries. The findings show that among 27 countries under investigation scoring 83.5 percent of substitution Bolivia ranks top. Iran with 38.4 percent ranks 12th among 27 nations. And Angola with 6.3 percent ranks 27th in the degree of currency substitution. In order to prevent a expansion of this phenomenon following measure are proposed:1-inflation controlling policy should be give priority 2- more appropriate investment opportunities should be created to mobilize the surplus money (savings) to be invested in economy's profitable sectors instead of being converted into dollar and other foreign currencies 3- to a possible extent exchange rate volatilities should be minimized to reduce the incentives for substituting domestic currency with a foreign currency. 4- Certain measures should be adopted to help official interest rate in the banking system exceed the inflation rate.

Looking for an answer to question, why some nations do better in terms of development and others don't many economists point to management of available resources. No doubt, a nation's decision about how to manage the available resources is main determinant of economic prosperity and well being of the citizens. Rent seeking is one of the phenomena that influence the resource management and its distributive effects in a country. In fact rent seeking and the ensuing costs could be a substantial part of the puzzle that why some nations develop while the others lag behind or suffer underdevelopment. Given the fact that rent seeking is crucial problem in Iran's economy, this study aims at presenting a new approach to an underlying determinant of underdevelopment in countries like Iran.

The challenge of convergence and divergence of per capita income trends is one of the major challenges of globalization. In this paper, based on a combination of Matsuyama's symmetry breaking and Deardroff's multiple cone theories we test, and analyze the hypothesis of per capita income trends convergence in the Islamic countries of MENA region. Given that this region does not enjoy enough product diversity, it is predicted that region's per capita income level settles at a pareto-inferior-equiliberium. In the mean time, influenced by globalization process the region's per capita income trend is converging within its own cone. The hypothesis test is conducted using the difference in difference model (DID). A prominent feature of this model is that it allows for the per capita income convergence in countries that have not undergone economic liberalization to be simultaneously compared with both the extent of convergence in the previous period and with the convergence in other countries of the region that have not embarked on economic reforms.

Islamic Charity (waqfi) services have an important role in serving the public causes and income distribution in human societies. Some historical evidences and inclusive activities reveal the worth of this valuable role. As far as profitable units are concerned, assuming such a role depends on the extent of the yielded returns that are to be spent according to the benefactors' intentions. However, the results of this study indicate that the return. of profitable units in southern Tehran is not considerable. In this research, we test the hypothesis that profitable units yield a lower return in proportion to their values and average return of the administrative units is proportionately lower than other forms of charity units(such as those run by the board of trustees) and personal properties. Thenceforth, we identify and determine the effects of independent variables on charity units returns and estimate the return functions of charity units and the demand for Tehran bazaar stores.reforming the management of charity units, annualizing lease contracts, modernization and reconstruction of profitable units, allocation of parts of incomes to long term investments, reforming the laws and regulations concerning waqf, and setting the stage for the participation of private sector in the management of mawqufat are the major policy prescriptions of this research to help improve the state of charity returns.

In any analysis of macroeconomic problems and economic policies, an investigation of import and export demand function occupies a significant and crucial role in effectiveness of trade policies.This paper is aimed to assess the role of total factor productivity (TFP) on nonoil exports and imports for the period 1959-2003.The results indicate that 1- the relative price index - that is the ratio of import goods to export goods in domestic prices - and total factor productivity has a adverse and considerable impact on import demands while domestic national product (GDP) (without taking oil production into account), and oil revenues have a positive impact on import demands. 2- total factor productivity, real exchange rate and the level of world import positively affects nonoil exports. In addition, we discuses various economic shocks and their immediate effects on nonoil exports and imports as well a s on different determent of import demand and export supply using the impulse response and variance decomposition analysis.