ECONOMIC RESEARCH REVIEW
Year:2005 | Volume:5 | Issue:3|Papers Count:16

In this article, with putting stress upon theoretical bases of growth model, the identification of effective factors impacting economic growth has been studied. To attain the objective of the study, emphasizing time series data and large industrial workplaces of the country, the production function and growth model in the macro scale as well as production function in the industry sector have been estimated. The results show that research and education capital stock in all estimated models in macro scale are from among the important economic growth factors in Iran. Also, in the industry sector education, research and physical capital have played an effective role in the growth of the sector. However, what is important is the acceptance of human, research and physical capital in every estimated model as well as precedence of the human and research capital to physical capital the models.

In this paper we study the uncertainty in the Q-theory of investment. A Q-type investment model is derived, which contains the information on uncertainty effects of random variables that affect the future profitability of a firm. Besides the usual capital accumulation constraint, the firm is also restricted by stochastic process for output and input prices. By using the method of dynamic programming, an explicit optimal investment function is derived.Testing the model at two different levels, sector and firm level, by using two groups of panel data, it is possible to find empirical implication in the Iran's economy so as to explain sectoral and firm investment behavior. It may also be concluded that the empirical weakness of standard Q-type investment models is due to ignoring uncertainty. At the firm level, there is a positive correlation between the price and exchange rate uncertainty and investment. But at the sector level, although it is the same for the exchange rate uncertainty, there is a negative impact of the price uncertainty on investment.

The relationship between the Government Budget and Inflation is one of the important subjects in macro- economic theories. In the majority of the developing countries Budget is the main tool for fiscal policy.The main objective of this paper is to study the effects of inflation on the budget deficit. In Iran's economy, the excess of Expenditures over Government revenue in too obvious, and at the some time there is a continuous trend in inflation. But the main question would be, what is the relationship between these two? The studies that had been done so far in concern of the effects of inflation the budget deficit is not so comprehensive.In this paper, we try to undertake the seasonal data in econometric model for price elasticity of tax revenues and government expenditures. These surveys show that the lag on tax collection, would be the main reason for decreasing the real value of government revenues.

This article discusses the theorical and empirical relationship between economic income distribution and growth in Iran (1968-2002). In this process we first study Kuznets hypothesis for effect of economic growth in income distribution and then to study the effect of income distribution in economic growth which can be classified channels: of saving rate, political economy, social unrest and credit market imperfection. Finally, we try to find empirical relationship by using the co-integration models. The results of this paper show a positive co-integration relationship between two variables and fail of Kuznets hypothesis in Iran.

Taxes are the most important financial source for government after oil revenue. So the estimation of tax capacity of the country and provinces introduce and measures the potential tax of the country and provinces, and is a good support to government for increasing its income according to this estimation. This article studies the effective factors on tax income of Mazandaran province and estimating its tax capacity.The value added of industry and mine sector, service sector of GDP without consideration of agriculture sector, literate rate and war, are most important effective factors on tax and tax capacity of Mazandaran province.On this basis, during 1982-2001 the maximum tax effort is %67 and the minimum is 40%, and at least 33% of tax capacity have not exploited as revenue.

The effect of terms of trade on the macro-economic variables such as he current account balance is an important issue in international trade literature.This paper focuses on the short-run and long-run relationship between current account deficit and the terms of trade in Iran during 1959-2001, by using the: Vector Error Correction Model(VECM), impulse Response Functions of Vector Auto-Regressive Model(VAR), Auto-Regressive Distributed Lag Model (ARDL) and Error Correction Model (ECM).The hypothesis we test in the paper is as follows: There is a relationship between the correct account deficit and the terms of trade in Iran. The result signifies that, GDP has had a positive and statistically significant effect on the terms of trade, and the rate of exchange has a negative effect on the current account deficit.

The credits paid by banking system credits are one of the main sources of financing in economy and at present time the banks in the monetary market are the greatest suppliers of financial needs of the country.But the more the share of the government from this credit, the less would be the share of the private section. On the other hand, in some economic theories, some governmental expenditures has positive effect on private sector's investments. This article evaluate the effects of credits paid by banking system to governmental and non governmental sectors and the government expenditures through budget on gross domestic capital formation.Results confirmed positive effect for both government expenditures and credits paid to nongovernmental sector on gross domestic capital formation. But the latter's effect was greater.

Theoretically, any changes in the interest rate of banking facilities should have an effect on the amount of investment. But in Iran's economy, this is not the case. Interest Rate is determined by the authorities rather than following the law of demand and supply in the financial market. Moreover the demand for banking facilities is more than financial sources available, therefore, decreasing the interest rate will not result an increase on the investment.The result of estimation of the demand for investment by OLS method and Vector Auto Regressive approve this fact. Hence, liberalization of the financial market and creating a competitive atmosphere in the financial system and above all, the usage of appropriate monetary tools may have positive effect on investment

The approach adopted in this research is focusing on the role of entrepreneurship in economic development through creating productive employment and new investment for innovator human resources.For confronting with unemployment it is necessary to recognize correctly the opportunities, for using of creative human forces. Because it will accelerate the development of Iran's society by reorganizing physical and human resources, and it will speed up the process of entrepreneurship. Entrepreneurship develops economic and social investment, clears up the way of living and also creates new economic activities.This research studies several hypotheses to confirm that entrepreneurship activities will lead to new economic opportunities, employment and social welfare.