Journal of economics and regional development

Abstract The Evaluation of Impacts of Knowledge-based Economy Factors on Total Factor Productivity Selected OIC Countries Abolfazl Shahabadi Assistant Professor, University of Bu-Ali Sina, Hamedan Fatemeh Kimiaie MA in Economics, University of Tehran Mohammad Arbabafzali MA in Economics, University of Tehran Abstract This Article evaluates the impacts of knowledge-based economy factors on total factor productivity selected OIC countries by using panel data approach and GLS method during 1996-2009. The results indicate that the ratio of accumulation of education costs to GDP in selected OIC countries; have a negative impact on TFP that is due to lack of demand-driven human capital. But the ratio of accumulation of domestic R&D capital stock to GDP (because of supply-driven internal R&D activities) and the ratio of accumulation of foreign R&D capital stock to GDP have a very small impact on TFP. But the ratio of ICT capital stock to GDP have the significant positive impact on TFP in selected OIC Countries. Keywords: Total Factor Productivity, Research and Development, Human Capital, Knowledge Based Economy JEL: C23, E23, O11, O31, O47

Abstract The Survey of Impact of Governance indicators and Foreign Direct Investment on Private Investment in Asian countries Hakimeh Hatef PHD student of Agricultural Economics, Azad University of Mashhad Alireza Karbasi Associated Professor of Agricultural Economy Faculty of Ferdowsi University of Mashhad Abstract This survey analysis the relationship between private investment and foreign direct investment with emphasis of governance indicators to determine their complement or substitute relationship. The sample includes 37 Asian countries with low and high income groups for 1996-2010 periods because of governance indicators limitation. Results showed that complementary relationship exist between private investment and foreign direct investment in low income countries and substitution relationship in high income countries. Also public investment and real GDP growth have positive and significant effects on private investment. Keywords: Private investment, Foreign direct investment, Governance indicators, Asian countries JEL: C23 , P45 , E22 , F21

Abstract The Investigation of Foreign Trade Effect on Income Distribution between each Urban Income Deciles of Iran Sayyed Abdolmajid Jalaee Associated Professor, Department of Economics, Shahid Bahonar University of Kerman Mostafa Gorgini MA Student, Department of Economics, Shahid Bahonar University of Kerman Abstract Foreign trade is one of the important issues, which has significant role in every economy. Moreover, one of the central goals of a society is social equity, and it is important that the form of equity in income distribution. This will be important when the impact of the trade structure between each income decile investigated. Therefore, this paper investigated the foreign trade effect on Gini coefficient in each income deciles based on VAR and VECM models. In order to this aim, the time series data of period 1979-2009 were used. The results indicate that, in short –term, the increasing of the foreign trade volume causes the Gini coefficient decreases in all income deciles; consequently, the income distribution will be more equality. Of course, in short –term, the intensity of foreign trade effect on the Gini coefficient intwohigh and low income deciles is more than in other income deciles. Our results revealed that, in the long term, the Gini coefficient between foreign trade and direct relationship of bottom six deciles, there is an inverse relationship between the four upper deciles. This inverse relationship is increasing in the upper deciles to the tenth deciles, so that in itself is the most intense. Keyword: Foreign trade, Income disturbance, Gini coefficient, Income deciles JEL: C32, F14, O15

Abstract Implications of Islamic View on the Regional Equality of Opportunities and Income: General Equilibrium Modeling for Iran Morteza Mortazavi Kakhki Ph.D Student, Department of Economics, Ferdowsi University of Mashhad Iman Haqiqi MA Student, Department of Economics, Economics University Mohammad Hossien Mahdavi Adeli Full Professor, Department of Economics, Ferdowsi University of Mashhad Abstract The Ultimate goal of Islam is establishment of social harmony in the society. In this paper we are going to study the Islamic perspective on causes of income inequality. We review the scholars’ opinions and Islamic principles. We show that Islam also recognize sine quality in opportunities as a root of inequality of income. Taking this into account, we will evaluate the impacts of redistribution of opportunities on the inequality of income in Iran provinces. The results of the General Equilibrium model show that equal opportunities through equalizing educational opportunities in various provinces can improve income distribution and reduce inter-provincial Gini coefficient of income. According to our findings if the equality of opportunities is met, the income distribution will improve and inter-provincial Gini coefficient will reduce from 0.25 to 0.11. Keywords:Justice, Islam, Equality of income, Equality of opportunities, General equilibrium JEL: B59, D58, D63, I24

Abstract Electoral Institutions and Local and National Budgetary Motivations of Islamic Parliament of Iran's Legislators: Content Analyzing of Legislator’s Notification of 8th Period Saeed Malek Sadati Ph.D Student in Economics, Ferdowsi University of Mashhad Mostafa Salimifar Full Professor of Economics, Ferdowsi University of Mashhad Mohammad Reza Lotfalipour Full Professor of Economics, Ferdowsi University of Mashhad Hadi Ghavami Assistant Professor of Economics, Ferdowsi University of Mashhad Abstract This paper investigates the relation between electoral institution and local and national budgetary motivations of Islamic Parliament of Iran’s legislators and tries to find an appropriate answer to the question that: Is there a significant relation between district magnitude and type of budgetary policies demanded by legislators? A legislative bargaining model has been used to answer this question and its propositions has been empirically tested through data collected from content analyzing of legislator’s notification of 8th period of the Parliament. Results indicate that 1) two and three member districts have served their own constituencies through pursuing construction projects exactly like single member districts, but four and more member districts have served their own constituencies through pursuing distributive policies 2) in pursuing construction projects, all legislators have prioritized local targets over national targets regardless of their district magnitude and 3) in pursuing budgetary policies, three and less member districts have prioritized local targets over national targets. Keywords: Electoral Rules, District Magnitude, National and Local Targets, Content Analysis, Budgetary Policies JEL: H11, H55

Abstract Analyze the Effect of Uncertainty on Investment in the Selected Developing Countries Leila Torki Assistant Professor, Department of Economics, University of Isfahan, Maryam Farahani PhD, Department of Economics, University of Isfahan, Abstract The main feature of investment in the real world is uncertainty, Mainly in the traditional theory of investment has been neglected. However, cash flows of investment and the economic environment will affect. This paper aims to evaluate the effect of uncertainty on investment in the developing countries. Thus, in the framework of Sarker (2003) and Horioka - Feldstein (1980), the effect of uncertainty on investment in 27 developing countries have been tested. FH pattern in the regression model based on panel data techniques in the period 1980-2008 is estimated. The results indicate that uncertainty reduce domestic investment significantly and non-linear. However, this conclusion reflects this fact that despite the uncertainty, investors will be provided through the allocation of domestic savings. Keywords: Uncertainty, Investment, Horioka - Feldstein Theory JEL: D81, E22

Abstract The Introduction and Application of MFLQ Method Instead AFLQ Method for Creation of Regional Input - Output Table (a Case Study of Khorasan Razavi) Ali Azadinejad Assistant Professor, Ayatollah Haeri Maybod University Abass Assari Arani Assistant Professor at Department of Economics, Tarbiat Modares University Esfandiar Jahangard Assistant Professor at Department of Economics, Allameh Tabatabaee University Abstract Input - Output Technique with a long history could identify the key sectors of the economics. Identifying the key sector is the engine of development and economic growth due to the unbalanced growth. Application of the Location Quotient Method is the best way to create regional input- output table. The location quotient methods break the national technical coefficients and convert to regional technical coefficient. AFLQ method couldn't adjust the weak sector and this method is incomplete. This paper proposes the better method named MFLQ method. Four weak sector in AFLQ method are key sector but in MFLQ method aren’t; Then MFLQ method is better than AFLQ method. Keywords: Input- output table, Location Quotient Method, Index of power of Dispersion, Index of Sensitivity of Dispersion JEL: R12, R15

Abstract Economic Efficiency Measurement of Agricultural Cooperatives; Using Stochastic Frontier and Data Envelopment Analysis Hamid Sepehrdoust Assistant Professor, Department of Economics, Bu-Ali-Sina University Seyed Hadi Yousefi MA Student, Department of Economics, Bu-Ali-Sina University Abstract Agricultural production cooperatives are considered efficient instruments for socio- economic development of the country, especially in rural areas. The purpose of this paper at first is to evaluate the important place of agricultural production cooperatives in regional farm and non-farm activities development and the second aim is to answer the basic question that whether agricultural cooperatives in Hamedan province of Iran could achieve full economic factors for promoting economic efficiency of agricultural production cooperatives? For this purpose, the economic efficiency of 65 out of 70 agricultural production cooperatives of Hamedan province are measured for the year 2010, by using parametric and nonparametric methods; means stochastic frontier production (SFP) and data envelopment analysis (DEA). Moreover, two-sample t-test for equality of means is used to compare the mean differences of efficiency level as well. The results show that generally the average economic efficiency of agricultural production cooperative measured by both methods is low and the variance among the cooperatives is high. Our findings showed that cooperative's profit is positively related to the current capital value of cooperative, expenditures made for activities, number of cooperative members and level of manager's knowledge. Implication of these factors; while increasing management experience, cultural acreage under irrigation and relevant educational skill level of the manager would eventually increase cooperative's performance. Keywords: Agriculture, Cooperative, Performance, Efficiency, SFP, DEA JEL: R50, R11, R58