Growth and development economics
samira Motaghi; nasrin Mansouri; Ali Reza Abroud
Abstract
Creating the necessary conditions to promote continuous and stable economic growth is one of the macroeconomic goals of countries. conomic freedom is one of the factors affecting economic growth; through trade freedom, the removal of unnecessary government barriers, and property rights, it can provide ...
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Creating the necessary conditions to promote continuous and stable economic growth is one of the macroeconomic goals of countries. conomic freedom is one of the factors affecting economic growth; through trade freedom, the removal of unnecessary government barriers, and property rights, it can provide incentives for investment, improve skills, and transfer technology, and pave the way for the development of productive activities. Therefore, the main objective of this study is to examine the impact of economic freedom on economic growth in selected developed countries (OECD) and developing countries (selected MENA) in the period 1998-2022 using the generalized moments method.The results of the study indicate that there is an inverse and significant relationship between inflation and economic growth in the two groups of countries studied; while the relationship between economic freedom, foreign direct investment, degree of trade openness, growth in the previous period, and government spending on economic growth in the two groups of countries studied was direct and significant. Since economic freedom has the greatest impact on growth, it can be acknowledged that improving economic freedom will provide incentives for all types of investments, accumulation of skills, as well as technology transfer and efficient use of investments, and will increase strength and competitiveness, and as a result, will lead to the realization of stable economic growth.
Growth and development economics
Ramezan Ali Arshian; Karim Emami; Kambiz peykarjou
Abstract
In this study, the threshold effects of the government's governance role in the relationship between fiscal deficit and tax policies with economic growth and prosperity index during the years 1365-1400 and the application of the mild transfer threshold approach (STAR) were investigated. The results of ...
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In this study, the threshold effects of the government's governance role in the relationship between fiscal deficit and tax policies with economic growth and prosperity index during the years 1365-1400 and the application of the mild transfer threshold approach (STAR) were investigated. The results of the non-linear part of the model show the existence of a positive relationship between the variables of tax revenues and oil prices with the economic growth and welfare index. Also, the variables of government size, fiscal deficit, exchange rate, and inflation lead to a decrease of 7%, 17%, 25%, and 17% of economic growth and welfare, respectively. Due to the fact that the financial relationship is the main factor in transferring oil price instability to other sectors of the economy, financial discipline is the only wise way to deal with financial deficit and currency and financial instability. For this reason, it is necessary to vaccinate the economy against the instability of oil revenues by disconnecting the government's current expenditures with oil revenues. Also, regarding the way of spending oil revenues, the existing laws regarding saving a part of oil revenues in the National Development Fund should be implemented with more executive guarantee. It is also suggested that the government, by shrinking its body, provides space for the private sector and foreign investment, with the entry of foreign direct investment and the development of financial markets, the government's foreign exchange income will increase, and as a result, with the growth of the government's foreign exchange income, the value of the national currency will also increase, which can be effective in the economic growth and prosperity of the country.
Growth and development economics
Mohsen Mohammadi Khyareh; reza Mazhari; Zarin Tabe
Abstract
The dynamic relationship between natural resource rents and economic growth has long been associated with the paradox of the "resource curse." However, the role of entrepreneurship as a moderating mechanism in this relationship has received relatively limited attention. This study focuses on both oil-rich ...
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The dynamic relationship between natural resource rents and economic growth has long been associated with the paradox of the "resource curse." However, the role of entrepreneurship as a moderating mechanism in this relationship has received relatively limited attention. This study focuses on both oil-rich and non-oil economies to simultaneously analyze the impact of resource rents and entrepreneurial activities on economic growth, thereby addressing a gap in the literature concerning the trilateral interaction among these variables. Utilizing panel data from 2006 to 2020 and employing the Generalized Method of Moments (GMM), the findings indicate that in oil-based economies, although resource rents independently exert suppressive effects on growth, their convergence with entrepreneurship—through channeling wealth into productive sectors—significantly enhances economic performance. In contrast, in non-oil economies, entrepreneurship emerges as the primary engine of growth independent of resource rents, underscoring the importance of innovation and diversification. Moreover, institutional quality in oil economies is identified as a crucial determinant of the direction (positive or negative) of the impact of resource rents. These results advocate for integrated policy frameworks that strengthen institutions, develop entrepreneurial ecosystems, and reduce reliance on natural resources as prerequisites for sustainable growth in resource-dependent countries.
Growth and development economics
Mehdi Rahimiebakhshmand; Syma Eskandari; Mahdi Moradi; Seyed Yousef Hajiasghari
Abstract
Past literature has confirmed the negative effects of economic uncertainty on production, investment, and employment. However, very limited studies consider the impact of economic uncertainty and banking concentration on the informal sectors. This study examines the effects of economic uncertainty on ...
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Past literature has confirmed the negative effects of economic uncertainty on production, investment, and employment. However, very limited studies consider the impact of economic uncertainty and banking concentration on the informal sectors. This study examines the effects of economic uncertainty on the shadow economy with the moderating role of banking concentration as an indicator of the financial sector. For this purpose, data were collected from a sample of 20 MENA member countries during the period 1991 to 2020. The GMM method has been used to estimate the research models. The results show that economic uncertainty has a positive effect on the size of the shadow economy and this effect is statistically confirmed at the 95% confidence level. The results also show that banking concentration has a significant effect on the relationship between economic uncertainty and the shadow economy. So that high banking concentration intensifies the positive effect of economic uncertainty on the size of the shadow economy.
Growth and development economics
Maryam Arjomand; Fatemeh Sadrnabavi
Abstract
The current research was conducted with the aim of evaluating the role of local development offices on the social empowerment of women in order to develop the culture of monitoring and evaluation. Descriptive research is analytical, and it was done by survey method. The statistical population of women ...
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The current research was conducted with the aim of evaluating the role of local development offices on the social empowerment of women in order to develop the culture of monitoring and evaluation. Descriptive research is analytical, and it was done by survey method. The statistical population of women living in Shahid Bahonar neighborhood of Mashhad was selected. Non-probability sampling by selecting 100 women who used the services of offices and 100 women who did not use the services of local development offices were questioned. The tool used was a researcher-made questionnaire. The validity of the questionnaire has been evaluated using face and criterion validity and reliability of the instrument using Cronbach's alpha method. The research results showed; Among the 7 investigated components of women's social empowerment in the use of facilitation offices, the most impact is related to the dimension of social value, followed by participation, interaction and social responsibility. The components of social cohesion and social trust have shown a very weak impact and no impact has been seen in the dimension of social satisfaction. In general, according to the obtained results, it can be said: In the discussion of social empowerment of women in marginal areas, the facilitation offices have not been very successful as it is included in the agenda of the fourth development program related to the establishment of local development offices.
Growth and development economics
Mobina Zarei; Seyed Parviz Jalili Kamju; Mahtab Tahmasebi; Ramin Khochiany
Abstract
1-INTRODUCTION
In the economy, education plays an important role in providing highly skilled human capital needed to create jobs, economic growth, and the welfare of individuals and society. Today, most economists believe that the lack of investment in human capital is the main reason for the ...
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1-INTRODUCTION
In the economy, education plays an important role in providing highly skilled human capital needed to create jobs, economic growth, and the welfare of individuals and society. Today, most economists believe that the lack of investment in human capital is the main reason for the low level of economic growth in developing countries, unless these countries use education and knowledge and promote the level of their professional skills. If they do not improve, the productivity and efficiency of labor and capital will remain at a low level and economic growth will be slow and with heavier costs. If the country has the required amount of human capital, it can be said that physical capital will be more productive. Human capital includes education, expertise, skills, and generally the quality of the workforce. Considering that one of the factors influencing the social welfare of countries is achieving a high economic growth rate, the assessment of the causes and factors affecting economic growth is always a special concern of economists, and several growth models have been designed for it.
2- THEORETICAL FRAMEWORK
Undoubtly development is necessary in all societies. Developed and developing countries use the same approach that can only be achieved through educational institutions. Therefore, education plays an effective role in improvement of societies to create continuous development in order to promote social and economic progress. Considering the importance of education costs for the development of countries' economies, it can be said that education costs help create wealth. The argument is that the ability to create, adopt, and improve technological and technical progress is associated with investment in human capital and the functioning of the educational system. Therefore, it is useful for countries to invest significantly in these areas in order to train the workforce and develop the necessary skills to increase economic growth and ensure the success of a country.
ncrease economic growth and ensure the success of a country.
3- MATERIALS & METHODS
The purpose of this research is to evaluate the effect of value-added education, high-level educational expenses and educational quality, trained workforce and capital stock on economic growth among urban households in the provinces of Iran in the period of 2006-2019. This research will use random dynamic panel by application of SAR spatial autoregression generalized moments model and with the use of Arellano-Bauer/Bundle-Band two-stage coefficients in order to estimate the econometric model.
In the spatial econometrics department, by forming the proximity matrix and then standardizing this matrix and finally by multiplying the standardized proximity matrix, a new variable is obtained in the dependent variable vector, which is called the spatial lag variable or the spatial lag variable, and thus with the presence of the lag variable spatial. The spatial econometric model is also dynamically estimated. In summary, all spatial models in the form of a spatial random dynamic panel model (SDPD) are as follows:
4-RESULTS & DISCUSSION
The results obtained from the model indicate that the independent variable of GMM has a positive and significant effect on economic growth, that is, part of the economic growth in these regions is due to their economic growth in the past years. The first spatial interval in the SAR model also has a positive and significant effect on the economic growth of other provinces. The added value of education has a positive and significant effect on economic growth with a coefficient of 0.12, when the added value of education increases, it means that the level of skill, knowledge and talent of the workforce increases, and the structure of the workforce leads to the use of skilled and capable personnel. The effect of human capital on economic growth will increase. Education expenditure also has a positive and significant effect on economic growth with a coefficient of 0.53. One of the ways to increase economic growth is creating a transformation in labor productivity and technological development. Promotion of the level of education requires investment in education and increasing educational facilities. Skilled and thoughtful manpower causes the development and expansion of the technologies produced and as the foundation of economic progress and development in the society, and thus by raising the level of education in the society, growth, the economy also increases. In Smith's main growth equation, labor force, land and capital stock are the main factors of production. Adam Smith explains growth as an endogenous phenomenon, according his point of view, economic growth depends on the decision and action of economic agents, especially their savings and investment behavior. Therefore, the capital stock has a positive and significant effect on economic growth with a coefficient of 0.0001, and the more the capital stock increases, the economic growth also increases. The labor force also has a positive effect on the economic growth of households by increasing it by a factor of 0.25. بیش ا
5- CONCLUSIONS
Based on the discussions of the theoretical foundations and according to the results obtained from the model, it shows that the workforce and the quality of education have a stronger effect on economic growth than the capital stock. In other words, it can be said that economic growth is strongly influenced by the human capital of workers. Therefore, the government should allocate more funds to the education and training organization. Hence the education and training should improve the quality of its schools in various scientific fields, as well as the higher education should raise the quality level of universities in the regions and provinces, especially the deprived areas, and the graduates, in addition to obtaining a degree from their abilities and skills. It is necessary for them to benefit in their educational fields and be able to move them from traditional methods to advanced and modern methods by entering the industry and agriculture sectors and be able to bring their province to high economic growth and development. According to the first spatial break of SAR, the increase in economic growth and development in one province leads to the spillover of economic growth and development to the neighbors’ provinces.
