Efat Asgari Seymareh; Mohammadreza Armanmehr
Abstract
Expended Abstract:
Introduction:
Intellectual capital is defined as "the ability to transfer knowledge and intangible assets to resources for wealth creation. Intellectual capital can be recognized as knowledge-based assets that underpin the growth of the country. Knowledge increases the country's ...
Read More
Expended Abstract:
Introduction:
Intellectual capital is defined as "the ability to transfer knowledge and intangible assets to resources for wealth creation. Intellectual capital can be recognized as knowledge-based assets that underpin the growth of the country. Knowledge increases the country's wealth if its importance is known and is different from the existing work practices, and Knowledge transfer is essential in this regard. Intellectual capital can be recognized as knowledge-based assets that underpin the growth of the country. In recent decades non-financial assets that constitute intellectual capital are the most important source of wealth creation and national progress. Knowledge and information are the main features of nations seeking development.
Theoretical frame work:
Investing in intangible assets is recognized as an essential factor in improving performance. Companies and countries' attention to the use of knowledge has led to creating competitive advantage and the implementation of national and regional innovation systems. Intellectual capital is an abstract and complex concept that is difficult to identify and define and can be examined at firms and countries. Most of the observations have been from the classification of intellectual capital to human capital, communication, and structure, and this model is used in many measurements at the organizational and national levels.
Methodology:
This paper examines the impact of intellectual capital on Iran's economic growth using the system dynamics model. The system dynamics model is one of the best scientific methods for complex models such as technical, economic, and nonlinear dynamic systems. It is, therefore, appropriate to monitor and evaluate the effects of intellectual capital on economic growth. It is an advanced method of analyzing the dynamic behavior of a complex system. The dynamics model structure gives a better picture of complex systems such as the intellectual capital system and the economic growth system. In this study, the indirect effect of this factor on economic growth has been investigated by changing the factors related to intellectual capital. Realism test and limit condition test, and sensitivity test of variables were performed to examine the behavior of variables, as a result of which the model of this research showed a logical behavior. The study period is 2001-2015, and its simulation is planned until 2031. It is also confirmed based on the DOLS model
Results and Discussion
Within the framework of this study, three hypotheses were examined. According to the first three hypotheses, with increasing intellectual capital, productivity increases and increases with increasing economic growth productivity. Of course, this effect does not happen quickly and is delayed. According to the second hypothesis, when human capital increases, intellectual capital also increases, and according to the third hypothesis, intellectual capital doing activities in a new and better way leads to higher productivity. The results obtained from the system dynamics model indicate the positive and small impact of intellectual capital on Iran's economic growth, which is also confirmed based on the DOLS model. The reason for the small impact of intellectual capital on growth is the lack of infrastructure and complementary conditions that can be provided with appropriate planning and policies.
Conclusions and Suggestions
From the policy applications of this research, it is important to note that if the high growth of intellectual capital is to be fully effective in economic growth, there must be other conditions that are not entirely possible in the real world but can be Reduce this gap with proper planning and policies. Another important point is the importance of paying attention to the development and promotion of human capital to increase human resources productivity and the development of intellectual capital, which policymakers should consider. To improve the status of human capital, it is necessary to pay more attention to the development of skills and capabilities of the workforce at the beginning and during entry through rational investments in secondary and higher education and skills training. In conclusion, the discussion of intellectual capital, given that it is a new topic, has a very important and valuable role in individuals' prosperity, improving living standards and income, increasing knowledge and skills, production capacity, economic growth, and poverty reduction. It should be noted that the economic attitude to intellectual capital (on education and training) is very useful for the country's productivity and guarantees the country's success and economic progress.
mohammadreza armanmehr; asiye farahmandmanesh
Abstract
Introduction
This study investigates the changes in inequality caused by the direct impact of price changes of commodity groups among different income deciles of urban households in Iran. The importance of examining income inequality has forced governments to intervene in certain matters through the ...
Read More
Introduction
This study investigates the changes in inequality caused by the direct impact of price changes of commodity groups among different income deciles of urban households in Iran. The importance of examining income inequality has forced governments to intervene in certain matters through the application of specific policies in terms of reducing economic inequality. The importance emanates from three aspects: 1) High income inequality not only causes the spread of economic instability but also it can hinder productivity growth; 2) In many studies, the reduction in income inequality is expressed in terms of growth and development. 3) The publication of statistics and extracts from poverty and economic inequity is important in centralizing people's attention to these issues.
Theoretical frame work
Indicators of inequality used to measure income inequality in a community do not pay attention to the elements making up this inequality and the relative contribution of each of them in terms of total inequality of income. In order to implement a policy of reducing inequality, the determinants of this inequality must be identified so that a more effective policy can be applied by prioritizing their relative importance in creating inequality. It has been proved that inflation is one of the factors affecting income distribution, and its effect should be measured on its own as one of the factors affecting income inequality. In this research, Atkinson index has been used. The research data were collected during the period of 1372-1392 and time series. If the Atkinson income inequality function, instead of the income of households in each decade, uses the equivalent household income per decade, The amount that the Atkinson formula will show for income inequality represents the effect of the total inequality factors minus the direct effect of prices on income inequality. Therefore, the inequality of equivalent income is defined as the effect of the sum of factors influencing income inequality minus the direct effect of prices. In this research, the demand function estimation has been done using the method of linear expenditure system (LES). Due to the non-observance of the distorted sentences, the normal distribution, and the simultaneous effect of disrupting the variables on each other, the seemingly unrelated equations are used to estimate the parameters of the demand function.
Methodology
1) To derive the demand relation, the Ston-Garri utility function is used. We maximize the utility function by limiting the budget.
2) Estimating the parameters of the demand function: One of the most important applications of SUR is to estimate the parameters of the consumption expenditure system of the household. In this study, there are eight major product categories, therefore, we will have eight equations
3)Extraction of equivalent income from the Ston-Garri function: After estimating the parameters, we obtain the equivalent income.It is the amount of income(expenditures), which is at the same level of the utility of original income (expenditures) (before the price change).This is presented at the level of new prices and is called equivalent revenue.
4( Calculation of Atkinson's inequality
5) The steps of calculating the direct effect of price changes on inequality
Results & Discussion
the direct influence of inflation (price changes) on income inequality is calculated. The average calculated value of this effect during the studied period is 48.8%, and this average represents the share of price changes or the share of inflation in income inequality. Therefore, commodity price changes (inflation) are the most fundamental factor in the variation in income inequality.
Conclusion
To solve the problem of income inequality, it is necessary to understand the constituent elements of the income inequality and the share of each of them in the total income inequality. The results indicate that the great price increase (high inflation) increases inequality. In addition, of the effective factors, increasing the price (inflation) has had the greatest impact on income inequality (almost 49 percent), while the remaining 51 percent relates to the rest of the factors (tax system, employment level, etc.) which are linked to the change in inequality. Regarding the above percentage, it is safe to say that price changes or inflation is one of the main factors accounting for the change in income inequality. Therefore, what policy makers should do to eliminate income inequality is to do their best to avoid inflationary policies.
