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Showing 70 results for Economic Growth
Volume 0, Issue 0 (12-2024)
Abstract
Aim and Introduction:
A growing body of research highlights the bidirectional relationship between conflict and economic performance. Findings indicate that economic decline—particularly severe recessions that reduce income levels, exacerbate inequalities, and intensify widespread economic distress—can fuel social unrest and internal conflicts. Periods characterized by a high risk of government collapse are associated with significantly lower rates of economic growth compared to more politically stable periods. Although such violent events may not occur frequently, they are prevalent worldwide and have affected numerous countries.
The Middle East, in particular, has long been afflicted by internal unrest, persistent conflicts, and intra- and intergovernmental tensions—all of which adversely influence national economies. Political economy literature underscores a complex interplay between political forces and economic direction, suggesting that political instability can disrupt economic continuity and hinder economic growth—a central indicator of national economic performance.
Accordingly, the primary objective of this study is to model the effects of political instability and conflict on economic growth in a sample of developing and developed countries, namely Iran, Iraq, Saudi Arabia, Russia, the United States, India, China, and Canada.
Methodology:
This study adopts a descriptive-analytical approach with practical applications, relying on secondary data collected through documentary research. The analytical method employed is the Bayesian Markov Switching Panel Regression, which effectively captures symmetric and asymmetric effects across different economic regimes.
The selected countries—spanning both developed and developing contexts—include Iran, Iraq, and Saudi Arabia, which have historically faced political tension and oil revenue fluctuations, as well as Russia, Canada, the United States, India, and China. The inclusion of India and China reflects their status as major global energy consumers. These countries were chosen based on their exposure to international tensions and their substantial influence on the global energy landscape.
The study period covers 1990 to 2020. The Markov switching panel framework enables the model to differentiate the impact of explanatory variables across distinct economic regimes. For instance, political stability may influence economic growth differently during recessionary periods compared to times of economic expansion. The variables analyzed include conflict intensity, political instability, oil income, population growth, foreign direct investment, life expectancy, government expenditure, budget deficits, trade openness, and the governance quality index.
Results and Discussion:
The analysis reveals that conflict and economic instability exert statistically significant effects on economic growth across both recession and growth regimes. In the recession regime, the coefficients for conflict and instability are 0.17% and 0.12%, respectively, while in the growth regime, they are slightly lower at 0.16% and 0.11%. Although both variables remain significant in both regimes, their influence is more pronounced during recessions, implying that political instability and conflict are more detrimental to growth when the economy is already underperforming.
These findings are consistent with prior research by Ashenfelter and Troeger (2006), Gaybulov and Sandler (2019), and Bart et al. (2021). Additionally, variables such as oil income, population growth, foreign direct investment, life expectancy, government expenditure, trade openness, and governance quality all exhibit positive and statistically significant effects on economic growth in both regimes.
The dominant economic regime identified in the study is the growth regime. Notably, with the exception of Iraq, Iran, and Saudi Arabia, the other countries analyzed have been experiencing economic growth in recent years. This observation underscores the correlation between political stability and sustained economic performance.
Conclusion:
The findings of this research emphasize the critical role of political stability in fostering a robust and resilient economic environment. A stable political climate is not only essential for social cohesion but also serves as a prerequisite for sustained economic growth and development. Policymakers are thus encouraged to invest in institutional reforms, infrastructure development, and inclusive governance frameworks that enhance citizens’ participation in decision-making processes. These measures can significantly contribute to both political stability and long-term economic prosperity in the countries under study.
A growing body of research highlights the bidirectional relationship between conflict and economic performance. Findings indicate that economic decline—particularly severe recessions that reduce income levels, exacerbate inequalities, and intensify widespread economic distress—can fuel social unrest and internal conflicts. Periods characterized by a high risk of government collapse are associated with significantly lower rates of economic growth compared to more politically stable periods. Although such violent events may not occur frequently, they are prevalent worldwide and have affected numerous countries.
The Middle East, in particular, has long been afflicted by internal unrest, persistent conflicts, and intra- and intergovernmental tensions—all of which adversely influence national economies. Political economy literature underscores a complex interplay between political forces and economic direction, suggesting that political instability can disrupt economic continuity and hinder economic growth—a central indicator of national economic performance.
Accordingly, the primary objective of this study is to model the effects of political instability and conflict on economic growth in a sample of developing and developed countries, namely Iran, Iraq, Saudi Arabia, Russia, the United States, India, China, and Canada.
Methodology:
This study adopts a descriptive-analytical approach with practical applications, relying on secondary data collected through documentary research. The analytical method employed is the Bayesian Markov Switching Panel Regression, which effectively captures symmetric and asymmetric effects across different economic regimes.
The selected countries—spanning both developed and developing contexts—include Iran, Iraq, and Saudi Arabia, which have historically faced political tension and oil revenue fluctuations, as well as Russia, Canada, the United States, India, and China. The inclusion of India and China reflects their status as major global energy consumers. These countries were chosen based on their exposure to international tensions and their substantial influence on the global energy landscape.
The study period covers 1990 to 2020. The Markov switching panel framework enables the model to differentiate the impact of explanatory variables across distinct economic regimes. For instance, political stability may influence economic growth differently during recessionary periods compared to times of economic expansion. The variables analyzed include conflict intensity, political instability, oil income, population growth, foreign direct investment, life expectancy, government expenditure, budget deficits, trade openness, and the governance quality index.
Results and Discussion:
The analysis reveals that conflict and economic instability exert statistically significant effects on economic growth across both recession and growth regimes. In the recession regime, the coefficients for conflict and instability are 0.17% and 0.12%, respectively, while in the growth regime, they are slightly lower at 0.16% and 0.11%. Although both variables remain significant in both regimes, their influence is more pronounced during recessions, implying that political instability and conflict are more detrimental to growth when the economy is already underperforming.
These findings are consistent with prior research by Ashenfelter and Troeger (2006), Gaybulov and Sandler (2019), and Bart et al. (2021). Additionally, variables such as oil income, population growth, foreign direct investment, life expectancy, government expenditure, trade openness, and governance quality all exhibit positive and statistically significant effects on economic growth in both regimes.
The dominant economic regime identified in the study is the growth regime. Notably, with the exception of Iraq, Iran, and Saudi Arabia, the other countries analyzed have been experiencing economic growth in recent years. This observation underscores the correlation between political stability and sustained economic performance.
Conclusion:
The findings of this research emphasize the critical role of political stability in fostering a robust and resilient economic environment. A stable political climate is not only essential for social cohesion but also serves as a prerequisite for sustained economic growth and development. Policymakers are thus encouraged to invest in institutional reforms, infrastructure development, and inclusive governance frameworks that enhance citizens’ participation in decision-making processes. These measures can significantly contribute to both political stability and long-term economic prosperity in the countries under study.
Volume 0, Issue 0 (12-2024)
Abstract
Aim and Introduction
Many theories and models of economic growth have identified capital as one of the most important drivers and determinants of economic growth and development. For years, it was believed that abundant natural resources, as part of a country’s capital, constituted a divine blessing, as they could be converted into other forms of capital and contribute to overall economic development. Consequently, countries rich in natural resources were expected to perform better economically than those without such resources. However, over time, particularly after World War II, empirical evidence revealed that most resource-rich countries performed poorly compared to resource-poor countries.
some empirical studies have highlighted a positive relationship between natural resource abundance and economic growth. Stijns (2001), using an alternative variable from Sachs and Warner (1995) to measure resource abundance, found no evidence of the detrimental effect of natural resources on economic growth. Lederman and Maloney (2003) also reported a positive relationship between resource abundance (measured by net resource exports per worker) and economic growth.
Sala-i-Martin and Subramanian (2003) contended that the relationship between natural resource abundance and economic growth loses statistical significance once institutional quality is accounted for. They suggested that the effect of natural resources depends on the type of resource, indicating that fuel and mineral resources negatively affect institutions (and thus economic growth), whereas the relationship between economic growth and other types of resources is not statistically significant. Similarly, Papyrakis and Gerlagh (2004) demonstrated that when variables such as corruption, investment, degree of freedom, terms of trade, and education are controlled and managed, the abundance of natural resources would have a positive effect on economic growth.
Thus, it can be concluded that not all resource-rich countries have experienced poor economic performance or economic decline. In certain cases, the optimal utilization of abundant resources has led to significant economic growth and increased per capita income.
Economic growth remains the primary goal of all economies, as it is directly linked to maximizing societal welfare. Economic growth encompasses increased utilization of inputs, improved productivity of production factors, and enhanced employment opportunities. Natural resources are among the most crucial sources of production in any country. According to growth and development theories, as well as international trade theories, these resources can provide a comparative advantage for an economy. Income generated from natural resource abundance can create national wealth, spur economic progress, increase societal welfare, and reduce poverty. In this regard, mineral resources are considered a key factor in accelerating investment and economic growth.
Methodology
This study examines the economic growth patterns of Iran and a group of mineral-rich countries from 2000 to 2020. A panel data method was employed to estimate and evaluate the results, considering the similarities between the selected countries and Iran in terms of mineral resource abundance.
In the research process, the final variables and the functional form of the model were identified, and data processing, analysis, and model estimation were conducted using Stata software. The data used in the study were collected from official sources, including the Central Bank, the Statistical Center of Iran, and the Ministry of Industry, Mine, and Trade. Additionally, for data on other countries, international sources such as the World Trade Organization (WTO), the World Bank, the Organization for Economic Cooperation and Development (OECD), and the International Monetary Fund’s (IMF) STAN database were utilized.
Findings
The study investigated the direct and indirect effects of natural resource abundance on economic growth through channels such as physical capital accumulation, research and development (R&D) investment in technology, labor, financial development, and economic freedom across three groups of countries. The first group includes countries with both mineral resources and oil, the second group consists of countries with only minerals, and the third group comprises countries with only oil resources. The generalized fixed effects model was selected as the final model for all three groups. According to the results:
The results suggest that the hypothesis of natural resource abundance positively influencing economic growth is supported for the first and second groups of countries. However, this hypothesis is not confirmed for the third group, which includes Iran.
The findings underscore that the impact of natural resources on economic growth is contingent upon various factors, including the type of resource, the quality of institutions, and the effectiveness of economic and governance policies. While some resource-rich countries have successfully translated their natural wealth into economic prosperity, others, including Iran, have faced challenges in maximizing the economic benefits of their natural resources.
Many theories and models of economic growth have identified capital as one of the most important drivers and determinants of economic growth and development. For years, it was believed that abundant natural resources, as part of a country’s capital, constituted a divine blessing, as they could be converted into other forms of capital and contribute to overall economic development. Consequently, countries rich in natural resources were expected to perform better economically than those without such resources. However, over time, particularly after World War II, empirical evidence revealed that most resource-rich countries performed poorly compared to resource-poor countries.
some empirical studies have highlighted a positive relationship between natural resource abundance and economic growth. Stijns (2001), using an alternative variable from Sachs and Warner (1995) to measure resource abundance, found no evidence of the detrimental effect of natural resources on economic growth. Lederman and Maloney (2003) also reported a positive relationship between resource abundance (measured by net resource exports per worker) and economic growth.
Sala-i-Martin and Subramanian (2003) contended that the relationship between natural resource abundance and economic growth loses statistical significance once institutional quality is accounted for. They suggested that the effect of natural resources depends on the type of resource, indicating that fuel and mineral resources negatively affect institutions (and thus economic growth), whereas the relationship between economic growth and other types of resources is not statistically significant. Similarly, Papyrakis and Gerlagh (2004) demonstrated that when variables such as corruption, investment, degree of freedom, terms of trade, and education are controlled and managed, the abundance of natural resources would have a positive effect on economic growth.
Thus, it can be concluded that not all resource-rich countries have experienced poor economic performance or economic decline. In certain cases, the optimal utilization of abundant resources has led to significant economic growth and increased per capita income.
Economic growth remains the primary goal of all economies, as it is directly linked to maximizing societal welfare. Economic growth encompasses increased utilization of inputs, improved productivity of production factors, and enhanced employment opportunities. Natural resources are among the most crucial sources of production in any country. According to growth and development theories, as well as international trade theories, these resources can provide a comparative advantage for an economy. Income generated from natural resource abundance can create national wealth, spur economic progress, increase societal welfare, and reduce poverty. In this regard, mineral resources are considered a key factor in accelerating investment and economic growth.
Methodology
This study examines the economic growth patterns of Iran and a group of mineral-rich countries from 2000 to 2020. A panel data method was employed to estimate and evaluate the results, considering the similarities between the selected countries and Iran in terms of mineral resource abundance.
In the research process, the final variables and the functional form of the model were identified, and data processing, analysis, and model estimation were conducted using Stata software. The data used in the study were collected from official sources, including the Central Bank, the Statistical Center of Iran, and the Ministry of Industry, Mine, and Trade. Additionally, for data on other countries, international sources such as the World Trade Organization (WTO), the World Bank, the Organization for Economic Cooperation and Development (OECD), and the International Monetary Fund’s (IMF) STAN database were utilized.
Findings
The study investigated the direct and indirect effects of natural resource abundance on economic growth through channels such as physical capital accumulation, research and development (R&D) investment in technology, labor, financial development, and economic freedom across three groups of countries. The first group includes countries with both mineral resources and oil, the second group consists of countries with only minerals, and the third group comprises countries with only oil resources. The generalized fixed effects model was selected as the final model for all three groups. According to the results:
- The share of mineral resources in exports was significant and positive for the first and second groups of countries, whereas it was significant and negative for the third group, which includes Iran.
- The share of oil and gas resources in exports was significant and positive for the first group of countries, but it had a significant negative impact for the third group.
- The unemployment rate had a significant negative relationship with per capita income across all groups.
- The total factor productivity index was positive and significant for all groups, positively influencing per capita income.
- Research and development expenditures had a significant positive effect on per capita income across all groups.
- The economic openness index was significant for all groups, positively affecting per capita income.
- The institutional quality index was significant for all groups, positively influencing per capita income.
- The net foreign direct investment variable was significant for the second group but had a negative effect.
The results suggest that the hypothesis of natural resource abundance positively influencing economic growth is supported for the first and second groups of countries. However, this hypothesis is not confirmed for the third group, which includes Iran.
The findings underscore that the impact of natural resources on economic growth is contingent upon various factors, including the type of resource, the quality of institutions, and the effectiveness of economic and governance policies. While some resource-rich countries have successfully translated their natural wealth into economic prosperity, others, including Iran, have faced challenges in maximizing the economic benefits of their natural resources.
Volume 0, Issue 0 (12-2024)
Abstract
Aim and Introduction
Economic and social instability, insecurity, and poor governance significantly increase transaction costs and investment risks while reducing incentives for productive economic activities. Institutional conditions and the political environment are fundamental factors influencing economic growth, as they affect the motivations of economic agents and thereby influence investment decisions, production organization, and overall economic performance. Macroeconomic instability, as an undesirable phenomenon, imposes both economic and social costs on society. Its persistence disturbs the national economic structure and diminishes household welfare by undermining financial security and increasing economic uncertainty.
Furthermore, effective economic policy-making and national development planning require a comprehensive understanding of the economy’s formal and informal sectors. The informal or underground economy includes activities outside the scope of official oversight, such as unregistered income, tax evasion, and operations beyond legal, social, and economic regulations. These activities are typically excluded from official GDP calculations but represent a significant share of economic production.
Modern definitions of economic growth encompass not only increases in GDP but also broader improvements in societal economic well-being. Notably, economic production occurs in both formal and informal sectors; thus, a thorough analysis of both is essential for developing effective and inclusive growth strategies. This study aims to evaluate the influence of political and economic risk, instability, and governance quality on both sectors of Iran’s economy over the period 1370–1401 (1991–2022). To achieve this, relevant indices were constructed to measure risk and instability in economic, financial, and social domains, as well as Iran’s governance performance, with the goal of identifying key determinants of formal sector strengthening and informal sector reduction.
Methodology
This research employs an endogenous growth model to investigate the factors influencing economic growth in Iran. Data on the underground economy are drawn from estimates produced using the Multiple Indicators and Multiple Causes (MIMIC) model. The methodological framework combines econometric techniques, notably Principal Component Analysis (PCA) and the Autoregressive Distributed Lag (ARDL) model.
PCA is applied to construct composite indices where multiple explanatory variables are involved, particularly in capturing instability and governance indicators. ARDL is used to examine relationships among variables, given the mixed order of integration in the time series data. This dual approach enables the study to assess the impact of governance, risk, and economic instability on both the formal and informal economic sectors.
Results and Discussion
The results show that within the economic growth function, property rights and political management exert a positive influence, while economic instability and international sanctions negatively affect Iran’s economic growth. Specifically, an increase of one unit in the political management index results in a 3.0033% increase in economic growth, whereas a one-unit rise in the economic instability index leads to a 0.1935% decline in growth.
In analyzing the informal (underground) economy, the study finds that increased risk and instability, unemployment, government size, tax revenues, and sanctions all contribute to the expansion of the informal sector. Conversely, improvements in political management reduce informal economic activities. Notably, the risk and instability index shows a high impact, with a coefficient of 3.99, signifying its strong correlation with the growth of Iran’s underground economy.
Conclusion
Improved political management enhances formal economic activity while suppressing informal sector expansion. Specifically, advancements in governance indicators—such as political participation, accountability, and rule of law—help reduce the size of the underground economy and promote formal sector growth. On the other hand, economic and social instabilities, including financial market volatility, inflation, speculation, and societal insecurity, incentivize informal economic behavior, thereby undermining the formal structure of the economy.
To address these challenges, the study recommends implementing comprehensive governance and economic reforms. On the governance side, strategies should include corruption control, enhanced oversight, legal enforcement, public trust-building, and increased legitimacy of political institutions. On the economic front, stabilizing inflation, exchange rates, and market speculation—as well as improving social cohesion through targeted policies—can mitigate the growth of informal economic activities. A balanced, multi-pronged approach will foster sustainable economic development and enhance the resilience of Iran’s formal economy.
Economic and social instability, insecurity, and poor governance significantly increase transaction costs and investment risks while reducing incentives for productive economic activities. Institutional conditions and the political environment are fundamental factors influencing economic growth, as they affect the motivations of economic agents and thereby influence investment decisions, production organization, and overall economic performance. Macroeconomic instability, as an undesirable phenomenon, imposes both economic and social costs on society. Its persistence disturbs the national economic structure and diminishes household welfare by undermining financial security and increasing economic uncertainty.
Furthermore, effective economic policy-making and national development planning require a comprehensive understanding of the economy’s formal and informal sectors. The informal or underground economy includes activities outside the scope of official oversight, such as unregistered income, tax evasion, and operations beyond legal, social, and economic regulations. These activities are typically excluded from official GDP calculations but represent a significant share of economic production.
Modern definitions of economic growth encompass not only increases in GDP but also broader improvements in societal economic well-being. Notably, economic production occurs in both formal and informal sectors; thus, a thorough analysis of both is essential for developing effective and inclusive growth strategies. This study aims to evaluate the influence of political and economic risk, instability, and governance quality on both sectors of Iran’s economy over the period 1370–1401 (1991–2022). To achieve this, relevant indices were constructed to measure risk and instability in economic, financial, and social domains, as well as Iran’s governance performance, with the goal of identifying key determinants of formal sector strengthening and informal sector reduction.
Methodology
This research employs an endogenous growth model to investigate the factors influencing economic growth in Iran. Data on the underground economy are drawn from estimates produced using the Multiple Indicators and Multiple Causes (MIMIC) model. The methodological framework combines econometric techniques, notably Principal Component Analysis (PCA) and the Autoregressive Distributed Lag (ARDL) model.
PCA is applied to construct composite indices where multiple explanatory variables are involved, particularly in capturing instability and governance indicators. ARDL is used to examine relationships among variables, given the mixed order of integration in the time series data. This dual approach enables the study to assess the impact of governance, risk, and economic instability on both the formal and informal economic sectors.
Results and Discussion
The results show that within the economic growth function, property rights and political management exert a positive influence, while economic instability and international sanctions negatively affect Iran’s economic growth. Specifically, an increase of one unit in the political management index results in a 3.0033% increase in economic growth, whereas a one-unit rise in the economic instability index leads to a 0.1935% decline in growth.
In analyzing the informal (underground) economy, the study finds that increased risk and instability, unemployment, government size, tax revenues, and sanctions all contribute to the expansion of the informal sector. Conversely, improvements in political management reduce informal economic activities. Notably, the risk and instability index shows a high impact, with a coefficient of 3.99, signifying its strong correlation with the growth of Iran’s underground economy.
Conclusion
Improved political management enhances formal economic activity while suppressing informal sector expansion. Specifically, advancements in governance indicators—such as political participation, accountability, and rule of law—help reduce the size of the underground economy and promote formal sector growth. On the other hand, economic and social instabilities, including financial market volatility, inflation, speculation, and societal insecurity, incentivize informal economic behavior, thereby undermining the formal structure of the economy.
To address these challenges, the study recommends implementing comprehensive governance and economic reforms. On the governance side, strategies should include corruption control, enhanced oversight, legal enforcement, public trust-building, and increased legitimacy of political institutions. On the economic front, stabilizing inflation, exchange rates, and market speculation—as well as improving social cohesion through targeted policies—can mitigate the growth of informal economic activities. A balanced, multi-pronged approach will foster sustainable economic development and enhance the resilience of Iran’s formal economy.
Volume 7, Issue 3 (10-2007)
Abstract
Financial markets play a vital role in supplying and facilitating the flow of funds into production and industry sectors of economy and can result into the acceleration of economic growth. Indeed, many experts believe that the development of financial markets acts as the engine for growth. The main objective of this paper is analyzing the relationships between financial market development and economic growth through focusing on Iranian economy and thirteen other countries for the period 1988-2003. In this regard in addition to the Beck and Levin model (2003), we have used three versions of Granger–Casualty approach, Cointegartion test and panel data estimation procedure. Casualty test shows that in Iran, bank and stock market size have no strong effect on economic growth despite the fact that the effect of economic growth on stock market is positive and meaningful. The results of panel data estimation revealed that in real terms, investment and labor force, positively and strongly affect economic growth. In the money sector, the effects of banking system are statistically acceptable, although the positive effect of stock market is not statistically acceptable. The absence of Long–run co integration relation between financial markets and economic growth for the period 1976-2003 is the result of Auto-Regressive Distributed Lag Estimation. In sum, the long – run relation between money market and economic growth is negative and this true for the Iranian economy.
Volume 7, Issue 3 (12-2017)
Abstract
Historical textures of Iranian cities are the expression of our long-standing values and traditions, and preserving and reviving them can be a valuable cultural-social source for future generations. They represent the collective wisdom of our ancestors who have been able to bring such structures that combine science, knowledge, art and experience. Addressing this valuable heritage in fact guides us to the use of rich past experiences and can be a continuation of a culture that depends on historical continuity.
Iranian historic houses, like gems in precious historical textures, are a collection of history of life, art, beliefs, customs, and irani-islamic lifestyles, and they can in some way be considered as a museum of all cultural and social customs of old generations.
Today, with the revitalization and rehabilitation of this valuable heritage, in addition to the cultural and historical protection of these works and the promotion of these customs among citizens, economic stimulus has been created in the city, which has led to economic growth and urban development, and suitable economic groups for the promotion of urban incomes. The growth of the tourism and tourism industry, which is today considered one of the most important principles in attracting capitals. Through studying the experiences of world successful countries in this area, we can provide a conceptual model for recreating valuable historic houses and creating economic mobility.
Today, cities have begun to move towards the use of their relative advantages in the region and the world in the wake of the globalization of the economy and the competition between them in order to play a more significant role in this competitive market. Cities know that building capital infrastructure in city-capable departments can help them compete from other cities in order to make it more successful in this globalization process. Following these rivalries, urban management is undergoing major changes in its governance and management, and it seeks to promote economic activity, creativity and utilization in urban business networks through the creation of an entrepreneurial capital city.
Many entrepreneurial cities are trying to create a new development model for the city's economic growth by revitalizing and rebuilding the city's historic buildings and structures.
Throsby, the famous Australian economist, shares capital in addition to physical, human, and natural (environmental) capital: another kind of capital, cultural, which, unlike other forms of capital, in addition to cultural value, this kind of capital can also provide economic value.
The cultural capital is in fact the cultural heritage that brings with it achievements of artistic, cultural, norms and beliefs of the forerunners for the new generations, and in this study it is crystallized in the historical houses of the city, which is an embodiment of all these achievements in the old days
Between legacy works, historic houses as a real cultural heritage have a special place because these homes, while meeting the climate and climate requirements of each region, have a direct relationship with the cultural, religious and traditional originality of the people, as well as certain aesthetic principles. Hence, the necessity and importance of protecting historic homes is not overlooked.
Today, as urbanization has grown, problems have become more and more than ever. One of these problems is the exhausted urban tissue that lies in the heart of the old part of the city and is a memorial to the ancient history and culture of that city. The issue becomes even more important when buildings and historic monuments have become valuable in the context of these historic contexts, and this increases the complexity of urban officials to deal with and interfere with those historical texts. In addition to cultural, social and physical values, these buildings can economically provide potential infrastructural infrastructure for the city, including infrastructure and infrastructure.
Urban redevelopment has encountered different approaches and models throughout its time. Today, one of the transcendental approaches that has been taken into consideration in recent years and decades is the issue of development and economic growth through the de-mining industry and the attraction of tourists through investment in urban cultural infrastructure; this approach seeks to be soft And gradually, through investing in a valuable historical and
Today, because of the tensions in the world economy and the crisis in the face of those cities, they are struggling to rely on their cultural values and assets, and their restoration and reintegration, through their cultural and identity identities, and investing in them; find a new model of urban economic structure for themselves.
Culture-based regeneration as a modern regeneration approach supports creative industries and also protects the local identity and culture of the region. The purpose of this approach in recreating is to seek to find works of cultural, historical, ritual and artistic backgrounds, so that the exogenous factor of culture as a component of the coherence of these scattered spheres enters the cycle of recreation.
Developmental stimuli of recreation are working to create prosperity and economic activity in precious urban textures and lead to more dynamism and vitality of these sectors in traditional neighborhoods. How these stimuli impact their roles in urban growth and development it is an issue of this research.
One of the newest regeneration policies is the creation and revitalization of projects that act as stimulants in the historical context, leading to accelerating and facilitating the process of regeneration as well as leading it. Historically valuable houses through social partnerships and local capacity building can play a catalytic and stimulating role in the growth of the economic and physical development of texture in the neighborhood scale and sometimes in the dimensions of the city; and lead us to the most sustainable way on the path to the reproduction of historical textures.
The restoration of valuable historical monuments in the world, which is in fact the cultural heritage of that city or country, has a long history and its attention is different depending on the arts and culture of people of each land and different organizations and sectors are associated with it. These works, which reflect the history, cultural, social and artistic values of the past, have widespread social interests and require more attention from public institutions and the private sector.
Iran has been paying attention to this issue for many years and has taken positive steps to this day, but it should be taken into consideration that all methods should be tailored to their local and cultural conditions and that the use of Western methods without Localization and adaptation to Iranian values will not succeed.
The purpose of this study is to investigate the relationship between the rehabilitation of precious urban houses and economic growth and seek to answer the question whether investment in restoring these houses in Iran has a positive and significant effect on economic growth and urban development.
Volume 7, Issue 4 (1-2008)
Abstract
During past decade pollution has been one of the main considerations of countries and they consider it not only in their territories but through engagement in international arrangement. Air pollution is one of the main kinds of pollution among the world which is mostly function of economic growth. The relation between economic growth and pollution is discussed as Environmental Kuznets Curve (EKC) hypnosis. In this paper we are going to test EKC through panel data technique for 67 countries at different phases of economic development, including Iran. The variable such as: Environmental regulation, Urban population, Number of automobiles and openness of economy have been considered as exogenous variables vector. The results imply that EKC exists.
Volume 8, Issue 2 (7-2008)
Abstract
Defense industry plays an important and strategic function in economy. Defense industry effects economy mainly through security and weapon exports. There has been a growing literature examining military expenditures in developing countries. Theoretically, there is no definite prediction of the direction of causation between economic growth and military spending. The majority of these studies have focused on whether or not defense spending has had a positive, a negative, or no impact whatsoever on economic growth in developing countries. The purpose of this paper is to examine the effects of defense spending on economic growth and private consumption in Iran using time series data for the period 1974 to 2005. A four-sector model based on the Feder approach is employed to detect any likely relationship between those variables. The model comprises consumption sector, defense sector, non-defense government sector, and exports sector. The findings show that there is statistically significant and positive relation between defense spending and economic growth in Iran, while the effects of defense spending on private consumption is negative.
Volume 8, Issue 2 (7-2008)
Abstract
The worldwide development of information and communication technology (ICT), commonly called ICT revolution, has accelerated dramatically since the second half of twenty century. The main characteristic of this revolution is the rapidly increasing computing power of new ICT products. Varying results achieved by different countries and regions fuel the debate over exactly how much influence ICT has on economic growth. We provide an insight of results from past studies carried out to confirm the productive relationship between the two, ICT and economic growth. The focus of this paper is to examine the impact of ICT on economic growth in OPEC countries using panel data over the period 1998-2004. Based on the literature, a Cobb-Douglas production function is specified to include ICT indicators. The results of estimates show that ICT contributed significantly to economic growth of OPEC countries over the period under study
Volume 9, Issue 1 (4-2009)
Abstract
Sustainable economic growth is one of the most important macroeconomic objectives. There are various factors affecting economic growth including trade and extent of the market. The aim of this study is to examin the effect of trade and extent of the market on economic growth in Iran and its trading partners using the data over the period 1995-2005. Trading partners comprise Germany, Italy, Singapore, Netherlands, China, Japan, the United Arab Emirates, India, France, South Korea, Kuwait, Sweden, Switzerland, USA, Azerbaijan, Greece, Pakistan, Spain, Turkey, Bahrain, Austria, Saudi Arabia, Tajikistan, the United Kingdom, Qatar, Brazil, Armenia, Thailand, Indonesia, and the Syrian Arab Republic. A growth regression model is used to model the relationship between economic growth, trade and extent of the market. The OLS technique is employed to estimate the growth model. Three openness measures are include in the model. They comprise nominal openness, real openness and geography-fitted real openness. We find that trade and domestic market size are robust determinants of economic growth over the 1995-2005 period when trade openness is measured as the US dollar value of imports and exports relative to GDP in PPP US$ (real openness). When trade openness is measured as the US dollar value of imports and exports relative to GDP in exchange rate US$ (nominal openness). However, trade and the size of market are non-robust determinants of growth. We argue that real openness is the more appropriate measure of trade. Moreover, when geography-fitted real openness is considered as a measure of trade openness, it has a strong effect on economic growth in countries with smaller domestic market.
Volume 9, Issue 3 (10-2009)
Abstract
The world is changing at a rapid pace and our viewpoint too. Moreover, the impact of government policy on social and economic growth is changing at the same pace. Many researchers have attempted to estimate the impact of government expenditures on economic growth. In this regard, they have used either a particular statistical model or Ram’s model (1986) employing a production function which criticized because of statistical limitations. The purpose of this article is to introduce an alternative theoretical framework based on the conventional demand theory applied by Bairam (1990). The annual time series data from 1974 to 2005 is employed to examine the effect of government size on economic growth in Iran. The empirical findings indicate that the government expenditures have a positive effect on economic growth which is consistent with the theory used in this paper and also it is in harmony with the empirical results of the similar studies.
Volume 9, Issue 3 (10-2009)
Abstract
Understanding the different aspects of the relationship between energy consumption and economic growth can outstandingly help to adopt appropriate policies in energy sector. Structural breaks and regime shifts may affect the above relationship. Therefore, it is important to consider structural breaks and regime shifts in empirical analysis. In this paper, the relationship between energy consumption and economic growth is analyzed in the presence of structural breaks. The empirical models are specified and estimated using Iran's time series data during 1967- 2005 period. To this end, unit root tests proposed by Zivot and Andrews (1992) are first used to identify structural breaks found endogenously and then the Gregory-Hansen cointegration test, which allows strctural breaks in time series, is employed to estimate the long-run relationship between energy consumption and economic growth. The results show that in the long run, there is a positive and significant relationship between energy consumption and economic growth in Iran.
Volume 9, Issue 4 (3-2010)
Abstract
There are many factors affecting economic growth. Based on the literature, the effects of these factors such as higher education are mainly examined using endogenous economic growth theories. Various theoretical models are used to estimate the relation among variables affecting economic growth. This paper investigates the effects of higher education human capital on the economic growth in Iran using the endogenous growth models. The specified model includes human capital, physical investment and foreign debt which are identified as the main determinants of economic growth in Iran. Two dummy variables are included in the model in order to represent the effects of Islamic revolution and imposed war. The Johnson five steps approach is employed to estimate the empirical model. The results confirm that higher education human capital has a relatively large and statistically significant effect on the economic growth in Iran. It is found that the growth elasticity of higher education human capital is larger than the growth impact of physical capital investment. So, in order to obtain a high rate of economic growth in the country, investment in higher education human capital must be increased. Moreover, based on the findings, it is recommended that the investment should be made using domestic saving instead of financing abroad.
Volume 9, Issue 4 (3-2010)
Abstract
Economic liberalization policy has been among the major concern of the governments during the last few decades. However, its impact on economic growth is still a controversial issue. The aim of this paper is to examine the impact of trade liberalization and financial development on economic growth in Iran using annual observations over the period 1973-2007. The current study would use ARDL technique to estimate the empirical model. The findings of this paper indicate that there is a long run positive and significant relationship between trade liberalization and financial development and economic growth in Iran over the period of the study. The error correction coefficient is around 0.32 showing that the adjustment towards the long run equilibrium takes place within almost three years. The Granger causality test indicates that causality runs from trade liberalization and financial development to GDP.
Volume 10, Issue 2 (7-2010)
Abstract
Since the first oil shock in 1973, almost the economic performance of Iran has been related to its natural resource wealth. The economy has experienced relatively lower per capita GDP growth and higher income inequality. This may support this hypothesis that natural resources seem to have been more of a curse than a blessing for Iran. This paper aims to analyze the effects of oil resource abundance on two major macroeconomic variables, economic growth and income distribution, in Iran using the data over the period 1968 - 2005. I take a time series perspective and focus on major forces of economic growth including oil resource. Moreover, the main determinants of income distribution are theoretically specified to examine the effects of oil resource. Due to the problem of data availability, and ARDL approach is employed to estimate the empirical models. Using the production function approach, the results of the study confirm that the overall long run effect of oil abundance on GDP is positive and significant but the value of the estimated coefficient is too small. The findings show that physical capital and human capital have positive and significant effects on GDP in the long run. Moreover, this study finds that oil abundance have negative and significant effect on income distribution. It means that oil revenue improves income equality in Iran. It should be point out that while the Gini coefficient is relatively higher compared to most countries, poverty level are substantially lower because of the distinguished social welfare system in the country and cohesive system of private social responsibility through a religious charitable system. However, income and human capital have a negative and significant effect on income distribution. The overall findings appeared to support this hypothesis that oil abundance is not a blessing for Iran.
Volume 11, Issue 1 (5-2011)
Abstract
Hyper inflation rates impose direct and indirect costs upon society. It has undesirable consequences that are caused by inflation uncertainty. In this regard, the following questions are raised: How do inflation rate and its uncertainty affect economic growth? Does the structural breakpoint affect relationship between inflation and growth rate? In this study the above questions are examined for the Iran's economy in period 1974-2007. For this purpose the regressive model is applied. In this model, growth rate of GDP depends on inflation rate, growth rate of the money supply, growth rate of the real gross fixed capital formation and inflation uncertainty. For the measuring inflation uncertainty Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model is used. Based on data analysis, structural break point occurs at inflation rate equal to 20 percent. Results show that the impact of inflation rate on economic growth is significantly negative but it minimizes at the rate of less than 20 percent and increases at the rate of more than 20 percent. Moreover, inflation uncertainty has significant and negative effect on growth.
Volume 11, Issue 1 (5-2011)
Abstract
In macroeconomics literature inspired by traditional economists, it is said that economic growth and more equal distribution in income, are two opposite targets since moving toward more equality of income, will reduce propensity to saving. Based on the optimum growths models, it seems that the highest levels of growth can happen in a system just when in allocating the resources among the generations the attention is more paid to the concept of justice. If in this process the attention is more paid to the present generation compared to the future ones, the available resources for the whole system will decrease and as a result the economic growth will be stabilized at far lower rates. The more economic justice means the higher rate for economic growth. In this paper we use an optimal growth theory for studying the mechanics of this regularity. Empirical calibration of the model to the Iranian economy reveals that if economic policy makers in a planning period via a scenario can decrease social time preference to a 5%, real per capita GDP, consumption, saving and per capita capital formation will increase by 6.5%, 2.2% and 42% respectively.
Volume 11, Issue 1 (5-2011)
Abstract
By a transient glance at the Iranian government budget, it is found that in almost all years, a large amount of the Iranian government budget deficit is provided by issuing money. Money issuing through inflation and real economic growth, leads to increased revenue for the government. Through increasing the general level of prices and decreasing the purchasing power it leads to the concept of “inflation tax” which is taken from people without their awareness. By real economic growth, more real balance will be demanded for transaction of additional production. In such a condition, the government by paying credit money takes the possession of the goods and services which have inherent value. Regarding the importance of growth in macroeconomic discussions, in this study, the relationship between seigniorage and per capita income growth by using econometrics models has been analyzed. Using time series data for 1966 – 2007 the econometric models have been estimated through CLS approach and threshold level of seigniorage is assessed. The results show that seigniorage has meaningful and negative effect on the economic growth at more than 3.5% but its effect on economic growth less than 3.5% is neutral.
Volume 11, Issue 2 (8-2011)
Abstract
This paper is aimed at analyzing population density, population division and economic distance on regional economic growth, using Panel Data models for 28 provinces of Iran over the period 2001-2006. The results show that religious and ethnic divisions and economic distance have negative effect and population density has positive effect on regional economic growth in Iran.
Volume 12, Issue 2 (7-2012)
Abstract
The Armey curve demonstrates a non linear relationship between government size and economic growth. This study used threshold regression approach in order to test the Armey curve relationship between government size and economic growth in Iran. Two sector production function proposed by Rati Ram (1986) and three indices of government size are used in this paper. The results reveal that a non linear relationship between all indices of government size and economic growth does not exist in Iran.
Volume 12, Issue 3 (9-2012)
Abstract
The assumption of a linear relationship between export and economic growth in previous investigations may lead to invalid inference if the actual relationship is nonlinear. In present study the relationship between export and economic growth in economies of Caspian Sea border countries (Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan) is explored with emphasis on the effect of nonlinearities on the causal relationships. Results of study show that nonlinearities exist in the dynamic relationship between exports and GDP growth. Nonlinear smooth transition autoregressive (STAR) model results suggest that nonlinear Granger causality flows from exports to output growth and vice versa. Predictive accuracy tests further confirm the appropriateness of the nonlinear models over the linear model specification.