Journal of Iran's Economic Essays; an Islamic approach
Year:2019 | Volume:16 | Issue:31|Papers Count:12

Compound indices in economic literature are proper criteria to evaluate the function and the gap between the status quo and the goals of economic programs and policies. This research is aimed to present and evaluate the compound indices of economic justice from the viewpoint of Islamic approach using OECD method. The findings of the research show that “ fair distribution of resources” , “ paying attention to the rights of the production sources and factors and considering the rights of future generations” , “ rewarding the production factors according to their desert and contribution” , “ reproduction of income and wealth” and “ thinking about the improvement of welfare of the society” are considered as the main parameters of the compound indices of economic justice considering the Islamic approach. Furthermore, the positive correlations between “ physical index of the quality of life” , “ the measure of the benefit from welfare facilities” , “ efficiency of the production factors” , “ Amartya Sen's welfare index” , “ the ratio of the staff services compensations in national accounts to GDP” and “ the ratio of investment in infrastructure facilities and equipment to harvesting natural resources index” are concluded in one hand. Negative correlation of the Foster, Greer and Thorbecke (FGT) Index with the procedure of economic justice is demonstrated on the other hand. According to the calculations, compound index of economic justice regarding Islamic approach has had a growing trend in Iran from 1995 to 2018 except for a few.

Inflation as a macroeconomic variable is influenced by many policies and has many welfare implications for different groups of society. By referring to the literature of public choice we can say that inflation changes have winners and losers. In this article, the long-term persistence of inflationary conditions in Iran was investigated. For this purpose, data were collected by library method (document analysis) and general selection approach. In this regard, the institutions affecting inflation were separated from those influenced by inflation. In the first category, the behavior of those actors were analyzed that influenced inflationary policies with different economic and political motives and in the second category, looking at the welfare and political effects of inflationary conditions, the actors affected by the inflationary conditions were analyzed. Also, bank debtors, brokers and speculators and importers of consumer goods and low-income deciles are affected by inflationary conditions. The central bank is suffering from inflationary conditions due to a decline in credit and the government due to a decline in political credit due to its inability to control inflation suffer from inflationary conditions. In other words, the government benefits from inflation in some respects and in other respects suffers from high inflationary conditions. It is assumed that the current institutional structure drives policymakers and economic decision-makers to make decisions that lead to the persistence of inflationary conditions. Therefore, the persistence of long-term inflationary conditions should not be considered an unexpected phenomenon. On the other hand, referring to Islamic theories shows the government's duty to preserve the value of money and to guarantee the devaluation of money arising from bad policies. Also, we can say with reference to Surah Al Nisa, Verse five, from an Islamic point of view structures must be designed in such a way that motivate actors to maintain value.

Low-income people are struggling to find housing. The purpose of this article is to present a housing financing solution for low-income people in the framework of Waqf-bonds through cooperatives. Then, the field survey method was used to measure the acceptance of the Waqf funds in the form of a willingness to pay questionnaire. The results show that the Waqf fund can be theoretically designed in three modes: In the first case, the assets of the Waqf funds are used directly to finance housing; in the second case the profits of this fund are used to finance housing; in the last case, the profits of assets in Waqf funds and the interests of the cooperative based Waqf funds are allocated to the construction of housing and finally the mail sources are invested. Also, the results of the questionnaire show that most people tend to pay more than their taxes for low-income housing. And variables such as tax rates, trust in the Waqf organization, and increased efficiency of housing by benevolent and charitable acts has a positive effect on the willingness of benevolent persons to finance the housing for the low-income people.

Qardh al-hasan (or benevolent lending known as a form of interest-free loan), is introduced as a good tool to realize the general approach of "prohibition of Riba or usury". Also, the rights and privileges this contract provides to both parties make it attractive both for raising and saving funds and for the supplying of the invested funds; but the lender's complete confidence in the future purchasing power of the borrowed money is one of the key factors in people's decision to invest in Qardh al-hasan deposits, which depends on the quality of the economic environment. This paper examines the determinants of Qardh al-hasane deposits with emphasis on economic security in public and private Iranian banks over the period 1984-2016. The results show that economic security has a positive and significant effect on Qardh al-hasane deposits. Also other variables such as volume of liquidity and Qardh al-hasane deposits and savings have positive and significant effect on Qardh al-hasane deposits, while interest rate of bank deposits has negative and significant effect on Qardh al-hasane deposits.

In Iran, the Monetary and Credit Council determines the rate of interest in terms of inflation rate and in a normative way. Critics of the country's banking system believe the issue is incompatible with the spirit of Islamic banking (i. e. sharing profits and losses). And Islamic banking is anti-business cycles, which is not possible in Iran's current banking system. This article examines the importance of the cost channel according to the new Keynesian model of the business cycle, considering the implementation of monetary policies based on Islamic banking system in Iran. And it tests the conditions under which the pattern can produce a positive response to inflation in a monetary contraction situation. The data used at constant prices in 2011 are annually for the period during 1966-2016 from the data of the Central Bank of the Islamic Republic of Iran. First, the model was linearized around the fixed point of the logarithm, and then its parameters were estimated using studies and facts revealed in the literature of Dynamic Stochastic General Equilibrium. Finally, using Blanchard and Kahn approach in Matlab software it was investigated by calculating and drawing graphs of instantaneous reaction functions. Inflation and capital rental rates move in the opposite direction after a contractionary monetary policy. Therefore, policymakers at the central bank should not worry about the short-term rise in inflation following a contractionary monetary policy.

In reviewing the research literature, there are many studies that have analyzed the relationship between different methods of financing and corporate governance. Some believe that good corporate governance companies are more successful in equity financing and, in contrary, some others believe in positive relationship between corporate governance and debt finance. In this paper, to analyze the relations between Sukuk financing and corporate governance, we tried to differentiate between the financier and company points of view in the financing decisions of different corporate governance quality companies. According to the results, in contrary to conventional financing, in both views, there is a positive relationship between Sukuk issuance and the corporate governance. As a case study, we also analyzed the corporate governance characteristics of Sukuk issuing companies in Iran during 2011 to 2016. The results from model estimation confirmed theoretical conclusion and corporate governance variables had positive and significant effects on the Sukuk issuance among Iranian Sukuk issuer companies.

One of the most prominent manifestations of social contribution in Islam is Takaful ("solidarity" or mutual guarantee) as a co-operative system of reimbursement or repayment in case of loss, organized as an Islamic or sharia compliant alternative to conventional insurance, which Takaful proponents believe contains forbidden riba (usury) and gharar (excessive uncertainty). Under Takaful, people and companies concerned about hazards make regular contributions ("donations") to be reimbursed or repaid to members in the event of loss, and managed on their behalf by a Takaful operator. Takaful means working together to meet each other's needs. This concept in Islam has many economic and non-economic aspects, among which this article deals only with co-operative system regarding subsistence needs. If we consider the transitional funds between the rich and the needy as a service (or commodity), the following issues arise: what are the nature of the service (or commodity)? What is its supply and demand? What are the factors affecting each of them? How to balance supply and demand? This paper tries to answer these questions using an analytical-descriptive approach. Given the different nature of Takaful, providing a proper analysis of the mechanism of supply and demand forces performance and explaining its performance can pave the way for proper management and planning in the field of Takaful.

The decisive role of the labor market as one of the areas of distribution of production inputs on the one hand, and the emphasis on the dignity and importance of human labor as drivers of social development, on the other hand, are of great importance to this market. Contrary to the neoclassical view of the labor market, which is largely the result of some kind of homogeneity between the rules governing this market and other markets, institutionalists provide a distinct analysis and explanation of this market by emphasizing the important labor market institutions. The different paths that eventually lead to the fundamental differences in the direction of designing labor market interactions. The difference between the institutionalist and neoclassical approaches provides new insights into labor market analysis. In presenting these new insights, this paper deals with the five institutions of labor unions and collective bargaining, minimum wage, employment protection, compulsory benefits, and the creation of a system of skills and education from an institutionalist perspective and its impact on the labor market variables has been assessed. Institutions that change performance in a functioning market structure and provide new insights into the structure and dynamics of the labor market for analysts. Finally, important differences between the neoclassical tradition and institutionalism in analyzing the structure of the specific labor market and guiding labor market policies are presented.

This research was carried out with the aim of identifying effective factors and prioritizing strategies for realizing resilience economics in Islamic banking of Iran. After studying theoretical foundations and reviewing previous studies, the paper going on with identifying important and effective factors for achievement of aims of resilient economy in the case of Islamic banking system of Iran. These factors include clarification of the banking network of the country, the honesty of the banking system, supporting domestic production and independency of central bank's decisions. Each of them were linked with 4 sub-criteria so we had 16 factors. The statistical population of the study is 61 persons from banking managers and university economics professors. Data were collected through questionnaires and were analyzed by Analytical Hierarchy Process Analysis (AHP) using Expert Choice software to prioritize these factors. The results indicate that independency of central bank's decisions has the highest priority. Supporting domestic production, honesty of the country's banking system, and clarification of the banking network of Iran respectively are in the next priority.

Management of liquidity is one of the banks’ most important duties for which they require some instruments. In recent years, interbank market has managed to perform effective roles in supply of banks’ financial resources and management of liquidity. As a regulatory body, the central bank bears all issues related thereto and is able to play efficient roles and assist its members in applying money policies in this market by generation of new instruments. Money market Mutual fund is one of the most important instruments held by interbank markets applied in both Islamic and western countries. Using descriptive-analytical, content analysis, and library-based methods, the present article seeks to authenticate the hypothesis that the central bank is able to make use of instruments of Money Market Mutual Fund together with other tools in this market to make more effective the role played by interbank market in money market policies. Results of this article indicate that the Central Bank of Iran is able to make required arrangements for application of Money Market Mutual Fund by designing apposite policies for formation of this fund.

In the past few years, with the intensification of Western sanctions against Iran, the theory of resistance economy has been raised by the Supreme Leader of the Islamic Republic of Iran as a model of Islamic economics and has been welcomed by scholars. One of the pillars of the financial system that plays a significant role in the implementation of macroeconomic policies is holding companies. These companies are one of the common organizational structures in many countries and have an important role in emerging economies. In this study, we intend to analyze the indicators effect on portfolio selection in holding companies from the perspective of Resistance Economics Policy. For this purpose, first with content analysis of Resistance Economics Policy, we identified effective indicators. Then based on the Delphi technique 14 key components were determined. In the following, using DEMATEL technique the internal relationship between these components and the impact and influence on / from each other is determined. Finally, using the analytical network process (ANP), indicators are prioritized. Export-orientation of industries, resistance to sanctions and changes in exchange rate got the highest priority. In the end, according to the components priorities, the necessary solutions to achieve the economic policy of resistance are presented.

In recent years, the international Islamic securities (Sukuk) market has enjoyed significant growth, and various governments and companies have entered the market worldwide and funded through the issuance of these securities. One of the important issues with the Sukuk issuance is the governing law of the transactions of these types of instruments. The importance of the legal framework and the rule of law will increase when international Sukuk issues, and if the law governing Sukuk transactions is not properly selected, there will be a possibility of a problem, especially in the bankruptcy. In this research, we try to investigate the issue of the legal framework and the law governing the publication of Sukuk, in particular in the international dimension, through the review of studies and the use of a descriptive analytical method. In this regard, considering the existing practices in the law governing Sukuk transactions in other countries and examining different approaches, the requirements for the Iranian capital market will be explained in this regard. There are various approaches to choosing the law for the issuance of Sukuk: First, the Sukuk transactions that choose English law and the exclusive jurisdiction of the English courts; Second, Sukuk transactions that partly provide for English law and jurisdiction; Third, Sukuk transactions that provide for Islamic Sharia as the exclusive law for the interpretation of the underlying agreements; and Fourth, Sukuk transactions that provide for arbitration as an alternative form of dispute resolution. In order to develop the international Sukuk market in Iran, it is necessary to consider, in relation to the legal framework and governing law, various considerations including the mechanism for determining the necessary legal framework in the upstream laws, the elimination of conflict of laws, the cooperation of regulators and further engagement with international institutions to strengthen the standards and legal infrastructures.