JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)
Year:2006 | Volume:6 | Issue:3|Papers Count:10

In this paper we try to test neutrality of money on output and inflation. For this purpose, first of all we estimated money model of Iran. Then, under Classical and Keynesian models, we tested the neutrality of money which confirmed in long run. This conclusion found under inflation model too. Money illusion was not rejected and Keynesian models were confirmed.

In a typical endogenous growth model, most of the economists pay attention to relation between financial development and economic growth. The results of such studies indicate that provision of financial services expand the entrepreneurship activities and improve the efficiency of investment which promotes the economic growth. But the barriers in front of financial activity such as imposing ceiling of interest rate, credit rationing, high reserve requirement ratio, etc. can reduce the level of saving and investment and cause slowdown in economic growth. Experience of Iran in past decades shows that financial sector has faced with severe restrictions. These restrictions or, in other words, financial repression caused slowdown in economic growth.In the framework of Kapur model (1974), the present paper introduces two policy actions through which the depth of financial repression is decreased: increasing the interest rates and decreasing the inflation rate through reducing the growth of money (liquidity).

Tax Revenues are considered to be one of the most important sources of financing government expenditures in many countries.However, such revenues are affected de-facto by the rate of inflation and the tax collection lags. Such factors are considered to be fundamental constraints for procuring the budget revenue.Since the major parts of revenue from corporate taxes are realized in Tehran, an attempt is made to analyze the impact of the inflation rate on real tax revenue of the corporate taxes in the Tehran province. The purpose of present study is to estimate the tax collection lag and price elasticity of corporate income tax to improve the tax system in Iran. If the revenues derived from corporate taxes in the presence of inflation are collected on time, they do not face any reduction in value. In this paper by considering the impact of the inflation rate on tax revenues (Tanzi Hypothesis), which depends on the elasticity and the lags in collection of corporate income taxes, we tried to utilize the annual data for the period (1980-2001) to estimate the corporate tax collection lag for the Tehran province and the price elasticity of taxation system, quid pro qua. For this purpose, we have applied the Johnson-Juselius econometric method. The results per se indicate that the length of taxation lag is about 25 months and price elasticity of corporate income tax is 0.7 percent. It goes without saying that the dominance of the existing structural bottlenecks in "Direct income tax lag", delinquency of tax payers in fulfilling their legal duties and undue presence of certain executive impediments are the main causes of occurrence of tax lag and low price elasticity in Iran. Thus of inflation will reduce the real taxable income of corporate sector.

Total Factor Productivity is a measure for calculating the level of optimality that uses inputs to produce outputs and it shows that how the predefined goals are achieved. Assessing the trend of productivity changes leads to some information about the efficiency, technology and technical knowledge in the firm. This information can be used to improve the performance of different parts of the firm and makes a plan for future development and progress. In the four year program of development, all of the firms have to determine the rate of total factor productivity growth in their production and make a strategic plan to improve their performance.This paper investigates Total Factor Productivity Growth (TFPG) using DEA-based Malmquist productivity index. In this paper, Malmquist index is broken down into efficiency changes. And technological changes the case study evaluates productivity growth and finds out the factors affecting productivity which are critical on the four major and important oil fields that are in the Lavan oil sector which is administered by Iranian Offshore Oil Company (IOOC). The study shows that understanding the important factors is essential for increasing productivity and performance improvement.

Interest rate is one of the main macroeconomic variables in economic policy making. In economic literature there is a significant relationship between the interest rate and inflation. Some Iranian policy makers and Islamic economists believe that increased production costs due to increased interest rate can lead to high prices and inflation. On the other hand, economic theories hold that increased inflation rate results in a higher interest rate. This paper examines the causal", relationship between the interest rate and inflation rate in a panel of 23 selected developing countries, using new causality approach and applying panel data over the 2001-2003 periods.The results show a unidirectional causality from interest rate to inflation rate for 23 developing countries. The findings have practical policy implications for decision makers in the area of macroeconomic planning, particularly in Iran. The results also imply that banks should decrease the received interest rate through increasing their efficiency.

In the present article, we have sought to identify the Islamic countries eligible to participate in the early nucleus of economic integration. In other words, our main question has been: by the key international macro-economic variables, which members of OIC have the capacity to actively participate in regional integration? Or, which countries enjoy the necessary qualifications for establishing the early nucleus of an effective regional economic integration among the OIC members? To answer this question, using 16 key economic, international macro-economic and trade indices which have a bearing on regional economic integration, we have attempted to make taxonomy of OIC members and recognize the most suitable members for constituting the early nucleus of regional economic integration.In terms of our aggregate combined index of OIC members, our findings suggest that the United Arab Emirates, Turkey, Kuwait, Bahrain, Indonesia, Malaysia, Saudi Arabia, Iran, Egypt and Lebanon have, respectively, the highest numerical value and ranking.

Separating money market from capital market in capitalism, rate of interest variable is one of the most important factors in reaching equilibrium in these two markets. In this method, investors by accepting a known rate of interest with an unknown income expectation, try to make investment decisions. This system is associated with risk-taking and trade cycle. But lack of segregation between money and capital market in Islamic monetary system, and interest rate as a function of income and prospective profits, the system lacks risk and trade cycle. This article theoretically attempts to show the efficiency of these two models for economic growth by introducing money demand model which is based on the lack of segregation between these two markets and Solo growth model. The result findings show that this model within a shorter time results in sustainable growth and the net effect of that on income increase and welfare is more than monetary system in capitalism.