ECONOMIC RESEARCH REVIEW
Year:2001 | Volume:1 | Issue:2|Papers Count:9

The major goal of this article is to briefly probe the strengths and the weaknesses of Iran / s economy during the preceding decade. The author tries to identify the factors which have caused its slow economic growth. Furthermore, he discusses certain policies by which the Iranian government can tighten the economic and technological gap between itself and advanced industrial countries. The eight-year war of Iran-Iraq damaged various industrial and infrastructure facilities in the territories of the two combatants. According to one estimate, the total damage of war has been about $500 billion. The author asserts that the amount of domestic investment for an economy like Iran with high rate of population growth and high unemployment rate is inadequate. In the years 1988 and 1989 the total investment was less than depreciation of the capital stock At the outset of the third millennium, Iran / s economic performance has been very unsatisfactory. The author argues that Iran is in possession of rich resources such as enormous oil and gas reserves, copper and many other minerals, as well as young and educated people. However, Iranians have not been able to utilize these assets effectively due to improper planning, frequent changes of economic policy, lack of cooperation between legislative, administrative and judiciary institutions of the country.

In the present structure of global economy, import has an important role in determinating economec development strategies. Import is one of the factors affecting on growth and GDP. In other words, it is also one of the most important variables in the trade balance according of trade. Any change in import affects output and growth. Therefore adopting a right policy in import is considered to be very important in international trade issue. Import and factors affecting it play an impotrant role in the trade of balance each country. This paper presents a new estimation of import demand function during 1338-1376. For empirical test, we use vector auto correlation that shows import, depends positively on oil revenue, GDP and at the same time negatively affects related prices. In addition, we discussed various impulses and their immediate effects on different variables through application of impulse, response and variance decomposition and tried to show how these variables changes affect and import demand accordingly.

In this study attempts have been made to delineate the impact of real minimum wage law on the employment of young work force at various young age groups in Iran. The finding of this study reveals that any increase in real minimum wage level will generate a significant adverse effect on the employment opportunity for young labor force, particularly at the age groups of 10-14 and 15-19. The adverse effects seem to be more alarming for female than male gender. This is partly explained by the fact that wage discrimination is observed in the Iranian economy. On the other hand, the increase in real minimum wage level imparts its adverse impact more on the teenager groups than the other young groups. In general, the findings of this study indicate that the increment in real minimum wage level do distort gender and age-wise employment distribution in the context of Iranian economy. Taking the notion of young population structure and inefficient social security in Iran, it will be premature to suggest legislation to increase in real minimum wage level.

Economic Sceince is living in many aspects quite isolated from the facts that illustrate pains, privations and discriminations from one hand and astonishing spilage and regrettable waste of resources on the other. Despite the fact of the fluencies and spilages, this science has become disabled to present fundamental reports because of its very abstract view and Descartian geometric approach to the external world as well as through paying close attention to the useless neo-classical presumptions and models. Economic Science should change its way and methodology if its due to be inspired by the realities as well as to replace the new realities for the old toward unsatisfied necessities. The present economic ways and solutions are for the riches not to enable people. In this essay I regard to vital established challenges in methodology of economic. These challenges are rooted in philosophical views as well as ideological beliefs and class position. With regard to how they explain the reality and what they advise, the liberal classic, neo-liberal, Keynesian, structural-functional, praxis and radical economists are quite different. However the neo-classic and neo-liberal economics have prevalenced particularly in last two decades under the pressures of the World Bank and IMF theoricians and in the same direction with the mainstream huge worldwide capitalism and has imposed on themselves as doubtless official methodology, but they not only were unable to remove the poverty, injustice and backwardness-i.e. these main economic goals-but they caused the resources and values to be transferred from deprived countries to the wealthy centers, having overruling economics and armies. This task was taken place by the economists through acceptance of unjust predominant orders of the present universe, as a science, and at the same times negating of the economic as a science of advise, interferences and will, as well as rejection of social conflicts and historical dynamism. This essay has come to the conclusion that dicourse and challenges in economic methodology not only are regarded as many important necessities in the present time, but would be essential in the economic thought in the first decades of twnty first century. All concealed mistakes and misleading conservations in positivist, Descartian view, neo-classical approach and so on have greatly been responsible for economic disasters, as well as erroneous thinking, theorizing and advising in this field. Also it is necessary to recognize mistakes in planning systems and in policies, but more importantly, methodology should be changed toward system, rootey, evolutionary, and practical approaches, as well as the methods that are based on will, wisdom, ideal and needs of the vast people and social groups.

For the Estimation of econometric models a researcher is usually facing this question that which one of the linear or logaritmic linear model"s should be estimated and prefered. The present paper answers this important question by the introduction of MWD test and in case study by the introduction of Engel"s Curve. And about some of the essential commodities in Iran chooses prefered models in each case.

During the last decades, Value Added Tax has been appreciated by more than 120 countries of the world. This kind of tax which is collected from the added value of enterprises at different stages of production and distribution, has various advantages such as lower tax rates, reducing incentives for tax evasion, and neutrality to economic variables. Also, it is a reliable source of revenue for the government. The flexibiliy of VAT is very high and can be used and implemented in different economic systems. Taking in to account the problems of tax system in Iran, VAT may be considered as a suitable solution. In this method, special treatment with different sectors or products could be possible through imposing exemptions or imposing different rates.

Lack of cash turnover in various production sectors and the existence of stagnant and inactive capitals has emphasized the importance of deposit and depository process and the bank"s efficiancy conduction of these sources towards production and optimum management of funds. Bank deposit balances which are representing social investment and part of the monetary and quasi-money are influenced by a number of factors. The present research is dedicated to a number of most important internal and external factors of banking system, demonstrating how people change their basket of assets by selecting a financial portfolio, investing in deposit accounts at banks. Since the main concern of the present research is the deposits of Bank Melli of Iran, the said institute introduced various aspects. The main discussion starts with theoretical basis and then model of the deposits in commercial banks and Bank Melli of Iran. (proposed). The model intends to recognize the effect of the asset price index on deposited balances of commercial banks, so that the changes in deposited balances at Bank Melli of Iran could be justified as a depository banking system with respect to a number of influential internal factors.

People in different societies are so prejudice about their values and their beliefs so that they never quit them. But development is the result of changes in values of the society. As it has been experienced in developed countries (e.g. Japan) New procedure in production, leads to changes in thinking and in life of individuals and ultimately in social values. Because thought and belief determine values. Different cultures present its own model of human being, by which his success in activities and social tasks of the people are determined. Individuals plan for their lives on the basis of these values. Sometimes in the process of development, however, they are required to review their values. Because in this process people would think more logically which ultimately brings in changes in altitudes and leads to change in behaviour and practices, invaluable traditional customs would lose their validity. Women would have more access to economic and profesional opportunities and also access to decision making process in their social activities. If changes in values do not take place simoultanously cause some problems to the development process. Recognition, introduction, transfer, weakning of the values are among the important factors affecting development. Some factors in development are increased by improving litracy, gaining experience and learning skills and innovation. To sum up, changing in people"s criteria of value is the most important factor in development. However necessary measures should be adopted to prevent any negative reaction by the society.