JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)
Year:2009 | Volume:8 | Issue:4|Papers Count:9

The objective of this study is to identify factors affecting the individual investment intent in Tehran stock market. A questionnaire is designed and used to collect data from investors of stock market in Iran. Cronbach's alpha is employed to test the consistency of the data. The estimated Cronbach's alpha coefficient is 0.871 confirming the consistency of the data collected by using questionnaire. Structural equation modeling (SEM) methodology is considered to test research hypotheses using LISREL software.The findings show that financial accounting information and general information have a significant effect on the investors' intent via investors' expectations. Moreover, individual needs effect individual investment intent.The estimates show that financial accounting information (0.4702), general information (0.5461), investors' expectations (0.31), and individual needs (0.24) effect individual investment intent in Tehran stock market.

This paper examines the calendar anomalies in daily return of the Tehran stock market. ARCH and GARCH models are employed to capture the wide range of different calendar anomalies exist in the literature.This study finds the evidence of strong Esfand and Mehr effects in the stock return. In addition, the results show that the stock market return has decreased with the lapses of time. After identifying and removing the calendar effects from daily return, BDS statistic is used to test the presence of any remaining non-linearity in the residuals before employing the GARCH models. The BDS test shows that there is a high probability of the dependency between residuals in spite of removing calendar anomalies. The results confirm that both the ARCH and GARCH models have considerable success in modeling dependencies. Finally, the importance of calendar effects in return forecasting is tested. The conclusion is that the inclusion of calendar effects improves the forecast accuracy. However, simple regression which includes calendar effects has better performance than the GARCH (1,1) models.

Considering multifaceted nature of "information", it has been introduced into different terminologies by the different researchers during the last three decades. In this article, we attempt to examine empirically the measurement of a sub-set of "information", namely "Primary information sectors (PIS)", which requires the following factors: definition and conceptualization, methodology, Process of estimation, and data requirements. Based on the 99 sectors of input-output table derived from a 2002 version as well as the availability of the results from the 2002 manufacturing Census of the country; the size, importance, and scope of the PIS of Iran have been worked out.The results indicate that the shares of PIS in gross output, value added and final demand are 8, 10.2, and 8.6 percent respectively. However, these percent’s are relatively less than those shares found in the selected developed and developing countries over the 1960s, 1970s, 1980s, and 1990s.

Based on the early theories of the foreign direct investment (FDI), trade and FDI are substitutes while the new international trade theories emphasize the complementary relationship between trade and FDI. This introduces new aspects to model fundamental concepts such as increasing returns to scale, product differentiation, and technology differences among countries.This paper is an empirical study of the interaction between trade and FDI using data on inward FDI to the ECO and 08 countries. To end this, we use instrumental variable and generalized two-stage least squares (G2SLS) techniques for panel data models. The results show that there is a complementary r'elationship between trade and FDI. Moreover, GDP, exchange rate, population, inflation, and SOlileconvergences variables have significantly influence on trade and FDI.

The aim of this paper is to investigate empirically the effects of monetary policy on poverty and income distribution in Iran using the data over the period 1976-2005.Monetary policy is one of the most potent instruments for managing the economy. There is a useful question to ask)f the monetary policy is used as an instrument to reduce poverty. Most of the existing literature on monetary policy and poverty focuses on the short run. Monetary policy affects most of the macroeconomic variables such as output, unemployment, and inflation. Moreover, an, ticipated inflation and unanticipated inflation redistribute differently income from creditors to debtors. If poverty and inequality respond to these macroeconomic variables, monetary policy affects the well-being of the poor.The findings of this study show that monetary policy cannot be used as a poverty alleviation policy in Iran, since the expansionary monetary policy followed commonly by expansionary fiscal policy results in a rise in budget deficits. This policy increases the aggregate demand for all the goods and services in the economy resulting in higher inflation. Furthermore, there is no significant link between monetary policy and investment through interest rate. Consequently, monetary policy has no supply side effects in the economy and just it increases inflation rate. As a result of expansionary monetary policy, the poor would find its real income being gradually eroded by the growth in money supply, and hence the possibility of running into poverty.

This paper examines urban residential water demand for the city of Zahedan in Iran using the data over the period 1999-2006. The continuously intensifying scarcity of water resources is a crucial problem in almost all contemporary societies. Even in areas where there are adequate quantities of water. The problem of scarcity is usually confronted through the deterioration of water quality resulting in increasing costs for certain water uses.In the framework of water demand, it is vital to analyze and understand the characteristics of water demand. There are several important questions that need to answer. They are as follows: How the demand is formulated?Which factors determine the demand? How the demand responds to the changes in income and 4he cost of water? Stone-Gray approach is used to model and answer the above questions.The results show that the main determinants of residential water demand comprise water price, income, and temperature. The price elasticity of demand equals -0.06 while the income elasticity equals 0.062. Finally, the findings confirm that the minimum water requirements are 95 liters per person per day.

Most debates on the role of trade openness and the wage inequality are based on the well-known Hecscher-Ohlin and Stopler-Samuelson (HOS) theories. According to the Heckscher-Ohlin theory, Countries have comparative advantages in those goods for which the required factors of production are relatively abundant locally while the Stopler-Samuelson theory refers to the income distribution effects of trade openness.In this paper, a computable general equilibrium (CGE) model and social accounting matrix (SAM) approach are used to assimilate the effect of tariff cuts on the earnings of production factors and relative wages by using Iran's data for 2001.The results confirm that general tariff cuts lead to a decrease in wage inequality while it leads to an increase in wage inequality in the foods, apparel and textile sectors. However, tariff cuts in agriculture sector reduce wage inequality.

This paper aims to measure the extent of mark-up and monopoly pricing in different sub sectors of the Iranian manufacturing. We measure annually the degree of monopoly pricing and mark-up for sub sectors over the period from 1959 to 2003.A panel data approach is developed and applied to gauge the mark-up and degree of monopoly pricing The results show that in four sub sectors, including chemical, non-ferrous metals, basic metals and machinery, these kinds of pricing are dominated and it is also prevalent in other sub sectors. Capital intensity and increase in the number of firms in each sector cause a reduction in mark-up while trade liberalization leads to an increase in productivity. The experience of liberalization in Iran over a short period of time confirms that mark-up is reduced, productivity is increased and capital intensity is decreased.