مقالات پژوهشی
Hashem Dadashpoor; Sadegh Saeidi
Abstract
Transition of economy towards knowledge-based economy highlighted innovation as a requirement for metropolitan regions. Innovation which is understood in broad sense to include product, process and organizational innovation in the firms as well as social and institutional innovation at the level of an ...
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Transition of economy towards knowledge-based economy highlighted innovation as a requirement for metropolitan regions. Innovation which is understood in broad sense to include product, process and organizational innovation in the firms as well as social and institutional innovation at the level of an industry, region and nation has assumed to play ever more central role in theories of economic development. On this basis, improvement on different types of innovation at different levels is assumed as a strategy for the development of metropolitan areas. In spite of this, studies show that only investment in R & D units cannot solely improve innovation. In the context of learning regions, this gap which is called innovation gap is filled by regional characteristics of firms. Accordingly, this article seeks to study the impact of regional learning variablesof firms on their innovative capacities. For this aim, it studies regional learning features namely commercial relations volume (vertical relations), feedbacks, horizontal relations with other firms, firm’s size, inter-firm competition, employing local skilled labor and relation with academic institutional infrastructure. In this p, effect of these regional learning variables on different types of innovation evaluated including innovation in the production of new products, innovation in improving quality of current products, innovation in improving production processes, innovation in marketing and innovation in the organization. Two groups of industrial firms (food and auto parts industries) were chosen as case study, and features of regional learning were studied and compared with each other, then, the effect of these features on innovative capacities was studied in all firms.
Methodology
On this basis, prepositions of the research are:
1) There is meaningful relation between regional learning variables in industrial firms of food and auto parts industries in Toos Industrial Township;
2) Regional learning variables influence innovation of food and auto parts industries locating in Toos Industrial Township.
A quantitative method was used to test these prepositions. First, required data for regional learning features and firms’ innovation were collected through half-structured interview with mangers. Then,
the regional learning features of the two studied industries were described and regional learning variables of these firms were compared, then, the effect of these variables on the regional innovation was examined. Collected data were analyzed using t-test for Equality of Means for comparing of groups of firms and correlation and linear regression for examining effect of regional learning on innovation. Statistical analysis was done using SPSS software.
Results and Discussion
Results show that firms are different in some components of regional learning and are equal in the rest. T-test for equality of means confirms the inequality with 90 percent level of significance only in variables of feedback providing and size of firms. The preposition was rejected regarding variables of commercial relations, receiving feedback, horizontal relations, competition among firms, employing local skilled labor, and relation with academic institutional infrastructure. Considering the second preposition, significance of affecting of some regional learning variables such as size of firms, competition among firms, employing local skilled labor and relation with academic institutional infrastructure on the innovation of the firms was confirmed; it was calculated that 44% of varieties of firms innovation was the result of difference in their regional learning variables (correlation coefficient = 0.67).
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta B Std. Error
1 (Constant) .175 .670 .261 .796
Vertical relations -.045 .076 -.085 -.595 .556
Horizontal relations .094 .084 .150 1.122 .270
Size of the firms (number of employees) -.175 .078 -.312 -2.255 .031
Number of Competitor) .235 .085 .396 2.765 .009
Ratio local labor in the total labor .133 .078 .237 1.708 .097
Relation with academic institutions .097 .052 .250 1.856 .072
Providing feedback -.102 .063 -.227 -1.608 .117
Receiving feedback .001 .032 .006 .045 .964
Conclusion
Given the fact that the impact of regional learning variables on innovations of firm was confirmed in the case study, thus, the reinforcement of these characteristics seems to be necessary. Accordingly, since relation with scientific institutes highly influences firms’ innovation in the studied cases, paying especial care on relations of firms and academic institutes and providing necessary institutional infrastructures to strengthen this relation can positively influence innovation of firms locating in Toos Industrial Township. In addition, academic institutions and facilitated relation between them and industrial firms must be taken into consideration in development of third phase of Toos Industrial Township. It was confirmed that smaller firms have more innovative employees; accordingly, firms can add to their products’ competitiveness. Out-sending can make firms more specialized and innovative. Taking into account that the third phase of the Township is under preparation, allocating facilities for small and medium firms can add to innovation in township level and promote its status.
Based on observations, firms locating in the studied Industrial Township (in both groups) had low level of non-zero horizontal relations, which explains meaningful influence of these relations on firms’ innovation. Cooperation among industrial firms – either within official or non-official frameworks – and formation of horizontal relations among them are known as the most influential factors in firms’ innovation. These relations among firms can help their becoming more innovative and consequently more competitive.
Based on the present research, numerous competitors for a firm is an influential factor for its innovation. Thus, homogenizing industrial sites – in a way that variety of producers exist for each stage of production chain – is a useful strategy to improve firms’ innovation.
مقالات پژوهشی
marzieh dindar rostami; Shams alah shirinbakhsh
Abstract
The purpose of this study is to investigate asymmetric effects of house prices shocks on urban household consumption in Iran during the period of 1385-1393. For this purpose, by estimating the two models, effects of house price shocks on household consumption have been studied in urban households and ...
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The purpose of this study is to investigate asymmetric effects of house prices shocks on urban household consumption in Iran during the period of 1385-1393. For this purpose, by estimating the two models, effects of house price shocks on household consumption have been studied in urban households and investigating asymmetric effects with using the approach of Panel Vector Auto Regression (Panel VAR). The results of this study suggest that the effect of changes in house price on household's consumption of urban is negative and significant in provinces of Iran during the period under study. Then, the effects of asymmetric shocks of house price have shown that the positive shocks have negative and significant effect and negative shocks have positive and significant effect on household consumption. Orthogonalized Impulse response functions (OIRF) suggest that the positive impact of price shocks on consumption is more effective than negative price shocks. Generally, urban households will change saving behavior in the facing the potential gains and losses of capital. The results indicate that the saving tendency and uncertainty has been increased in urban households during this period.
Methodology
Panel VAR is composed of traditional VAR, which endogenously defines all the variables in the pattern and panel data method, which imports unobservable factors in the pattern.
In this study, after examining the stationary of the pattern variables and determining the optimal lag, the stability is checked in the desired pattern. The results of the table and the study of statistics values show that the null hypothesis based on the lack of stationary of variables like consumption, housing price, positive and negative changes in housing price and urban household's income are rejected in all three tests, in the sense that all variables in the model are static.
In the case of the lag order of the tests, the minimum value in MBIC, MAIC, and MQIC standards is the first lag order. In both studied patterns, eigenvalues are inside the unit circle which represents the stability of the pattern.
In this study, the coefficients are estimated using panel vector autoregressive pattern and based on GMM method. Some New software called Love (2015) and Abrigo and STATA12 have been used to estimate the coefficients.
Results and Discussion
The effect of housing price shock on urban household's consumption, housing price, urban inflation and urban household's income are shown in diagram 1. As can be seen, the positive housing price shock as large as one standard deviation will cause negative consumption response and the negative response will reach its peak in the second year, then it will be gradually converged to its initial level. According to the theory, a demand shock in housing price will lead to increase in housing price through an initial increase in mortgage rates. Therefore, the increase in real prices of estate caused increased household wealth and thereby increased demand for the goods. The increased household consumption expenditure will lead to inflationary pressure.
According to the results of the analysis in this study, the proposed theory has been violated, which could be due to various factors, including uncertainty in housing price changes, assuming it as a temporary matter by households, increased precautionary savings and retirement savings in order to deal with disability and disease and increased liquidity constraints in the collateral role and increased housing price.
diagram 1: Orthogonalized Impulse Response Function: The effect of housing price shock on models variables.
The effects of impulse response functions of positive price shock (hpp) on consumption are a little more than negative price shock (hpn). After positive housing price shock, urban household's consumption will be decreased in provinces and it will reach its lowest value in the first period. Then the behavior will be fluctuating and finally, it will be converged to its first route after 10 periods. In other words, by increasing the housing price, homeowners feel getting richer because of increased possible benefits of their wealth, and they will increase their consumption. Tenants and those who want to buy a house, feel getting poorer and therefore consumption reduction and increased savings will occur. According to diagram 2, the effect of reducing consumption will be higher than the effect of increasing consumption; therefore, the positive housing price shock will decrease the consumption.
diagram 2: Orthogonalized Impulse Response Function: The asymmetric effect of housing price shock
Conclusion
This study aimed to investigate the asymmetric effects of housing prices on urban household's consumption in provinces of Iran during 1393-1385. For this purpose, the effects of housing price shock on urban household's consumption are studied using two patterns then its asymmetric effects are examined using Panel vector autoregressive approach (Panel VAR).
According to the literature about the discussed issue, theoretically, the effect of increased housing price on total consumption expenditure looks ambiguous. In most studies, this relationship has been positive. The results of the study obtained from the estimation of the pattern and examination of orthogonalized Impulse response function show that the effect of housing price changes on urban household's consumption during the studied period is negative and significant in the provinces of Iran. In addition, the asymmetric effects of housing price shock have a negative and significant effect on positive housing price shock and also have a positive effect on negative housing price shock. Orthogonalized Impulse response function indicates that the effect of positive price shock on consumption is more effective and higher than negative price shock. Therefore, the asymmetric effect of housing shock on urban household's consumption has been approved.
مقالات پژوهشی
sadegh bafandeh imandoust; ali mofidi
Abstract
The GCI combines 113 indicators. These indicators are grouped into 12 pillars: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, good market efficiency, labor market efficiency, financial market development, technological readiness, ...
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The GCI combines 113 indicators. These indicators are grouped into 12 pillars: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, good market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. These are in turn organized into three sub-indexes, in line with three main stages of development; basic requirements, efficiency enhancers and innovation and sophistication factors. In this paper, the effect of global competitiveness index (GCI) on economic growth has been studied. To this end, panel data of 42 countries collected in the period 2010 to 2014, and the model is estimated. The model estimation results show that the GCI score has positive and significant effects on GDP per capita growth among selected developed and developing countries.
Methodology
Competitiveness is defined as the set of institutions, policies, and factors that determine the level of productivity of a country. Many determinants drive productivity and competitiveness. Understanding the factors behind this process has occupied the minds of economists for hundreds of years, engendering theories ranging from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure and, more recently, to interest in other mechanisms such as education and training, technological progress, macroeconomic stability, good governance, firm sophistication, and market efficiency among others. While all of these factors are likely to be important for competitiveness and growth. In economic theory of stages of development, the GCI assumes that, in the first stage, the economy is factor-driven and countries compete based on their factor endowments— primarily unskilled labor and natural resources. Companies compete on the basis of price and sell basic products or commodities, with their low productivity reflected in low wages. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1), a well-developed infrastructure (pillar 2), a stable macroeconomic environment (pillar 3), and a healthy workforce that has received at least a basic education (pillar 4). As a country becomes more competitive, productivity will increase and wages will rise with advancing development. Countries will then move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality because wages have risen and they cannot increase prices. At this point, competitiveness is increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), well-functioning labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and a large domestic or foreign market (pillar 10). Finally, as countries move into the innovation-driven stage, wages will have risen by so much that they are able to sustain those higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and by innovating new ones (pillar12). The Global Competitiveness Index (GCI) has been used by the World Economic Forum to assess the level of productivity of an economy. Hall and Jones (1996) have shown that around 89 percent of the variation in GDP per capita is due to variation in the level of productivity. As a result, GDP per capita can be used as a proxy for the level of productivity of a country. The regress of the log level of GDP per capita on the GCI score reveals that about two-thirds of the variation in GDP per capita can be explained by the GCI. However, estimating a bivariate relation between the growth rate and the GCI would be a mistake. The reason for that lies in what economists call the “conditional convergence effect”, which posits that, all other things being equal, there is a natural tendency for poor economies to grow faster—a phenomenon known as conditional convergence. In other words, if all countries had the same investment and population growth rates and the same levels of productivity, then we should observe poor countries growing faster than rich ones. Conversely, if all countries had the same level of income, then those that were more competitive would experience higher rates of long-term economic growth. In reality, however, countries differ both in their levels of income and their levels of productivity, and therefore it is very hard to predict the relationship between the growth rate and the level of productivity with a bivariate correlation analysis that includes the initial level of income. Formally, in a growth convergence equation, the growth rate of GDP per capita of country is a positive function of the GCI score and a negative function of GDP per capita.
Results and Discussion
The model estimation results show that the GCI score has positive and significant effects on GDP per capita growth among selected developed countries and a %10 increase in a country’s GCI score would lead to an increase in the economic growth by 17.32588 percentage points. This amount is 15.49522 for selected developing and emerging countries. Results of this paper show that “net growth rate” against the GCI score, revealing a positive and strong correlation, which is consistent with the view that the GCI is a good proxy for the level of productivity or competitiveness of an economy.
مقالات پژوهشی
farhad barandak
Abstract
The general objectives of regional planning and economic development include the establishment of social justice and distribution of welfare and wealth among people in a society. To achieve these objectives in any society, different programs and plans are required to be developed and executed. Therefore, ...
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The general objectives of regional planning and economic development include the establishment of social justice and distribution of welfare and wealth among people in a society. To achieve these objectives in any society, different programs and plans are required to be developed and executed. Therefore, through development of deprivation-removal programs, planners are trying to reduce the gaps and inequalities. In most developing countries, one, two or at most a couple of regions are in a good status in terms of public services and socioeconomic prosperity, so that play a major role in the development of national income and product. This is the cost keeping other areas underdeveloped and increasing the gap between the regions and districts. The aim of this study is to evaluate the development of the townships by Lorestan province in terms of energy and communication infrastructure in rural areas.
Theoretical Framework
After the 1960s, the use of statistical models and quantitative use of various methods tend policy-makers, planners and geographers including justification for the use of these techniques (mathematically) increased their choices.
Decision models to help make the right decision and have expanded into two groups of models of multi-objective and multi-attribute models are divided. Prometheus component and as an efficient method of MADM methods and the use of the words "preferred" and "indifference" is to select the best option. The method in various fields (such as operations research and dynamic management) is used.
Methodology
The present research was a scientific-applied, descriptive-analytical study. Considering the interaction between the criteria used in this study, analytic network process (ANP) was used for data analysis. In addition, Multi Criteria Decision Making (MCDM) model was used to determine the development level of studied regions. First of all, theoretical foundations related to the research subject were reviewed using library studies and referring to related documents. In this study, to assess the townships of Lorestan (in the period 2011) in terms of indices of development of energy infrastructure and communications, Prometheus-2 (who focuses on ranking discrete options) is used. So, the development indicators were selected in order to determine the level of development in Lorestan Province in ratio shape. Indicators of research include:1-ratio villages with access to the railway station to the total inhabited villages; 2-ratio villages with access to the public transportation to the total inhabited villages; 3-ratio villages possessed of newspapers and magazines to the total inhabited villages; 4-ratio villages possessed of Internet to the total inhabited villages; 5-ratio villages possessed of ICT to the total inhabited villages; 6-ratio villages possessed of office contacts to the total inhabited villages;7- ratio villages possessed of post office to the total inhabited villages; 8-ratio villages possessed of paved roads to total villages inhabited;9- ratio villages possessed of Kerosene distribution agency to total villages inhabited; 10-ratio villages possessed of fuel station to total villages inhabited; 11- ratio villages possessed of National electricity network to total villages inhabited; 12-ratio villages possessed of gas pipeline to total villages inhabited; 13-ratio villages possessing water purification system to total villages inhabited.
It should be noted that data analysis was done using Visual PROMETHEE and Super Decision software.
Discussion
In the present study, ANP method was used to weight the indicators. ANP is a more extensive version of AHP which deals with internal relationships between the decision-making levels. Therefore, in structuring the decision-making levels, both internal and external relationships should be taken into account. Considering the weight of indexes, original table of Prometheus-2 is presented as follows:
Table 1- Features of development indicators
indicator
trait 1 2 3 4 5 6 7 8 9 10 11 12 13
MIN/ MAX Max Max Max Max Max Max Max Max Max Max Max Max Max
Preference Fn. V V V V V V V V V V V V V
Weight 0.090 0.090 0.053 0.055 0.052 0.055 0.050 0.084 0.069 0.054 0.118 0.108 0.141
S: (Gaussian) - - - - - - - - - - - - -
P: (Preference) 1 1 1 1 1 1 1 1 1 1 1 1 1
Q: (Indifference) - - - - - - - - - - - - -
The overall results, is provided in the table below. Based on this, Borujerd is the first developed township in terms of rural infrastructure facilities with net inflow of 0.089. Also, only the net flow four township is positive.
Table 2- PROMETHEE values
Kuhdasht Poldokhtar Dore Delfan Selsele Khorramabad Borujerd Drood Aligodarz Azna
Phi+ 0.0269 0.0145 0.0429 0.0095 0.0871 0.0252 0.1040 0.0818 0.0415 0.090
Phi- 0.0571 0.0803 0.0449 0.0860 0.0176 0.0792 0.0144 0.0195 0.0987 0.0261
Phi -0.030 -0.065 -0.002 -0.076 0.069 -0.054 0.089 0.062 -0.057 0.064
The following shapes, townships of Lorestan performance of the indices and PROMETHEE network is shown.
Figure 1- Performance of townships of LORESTAN
Figure 2- PROMETHEE network
Conclusion & Suggestions
The experience of regional studies in different countries show that some areas of a country have better performance and thus enjoy a more favorable development and growth, compared to other areas. Therefore, if the planners can identify the factors affecting the proper functioning of different areas, they can both take advantage of the experiences of managers in each area and optimally allocate the available funds. Development inequality among regions or cities is of issues raised in the literature of regional planning in recent years and has been warmly welcomed in academic circles. To reduce these inequalities that is one of the best examples of development and sustainable development, regional planning should be taken into account. The first step in this kind of planning is to identify and understand inequalities between regions. The present research aimed to study indicators of rural infrastructure development in order to determine the level of development in counties of Lorestan province using the latest available statistics. Given the interaction between development factors, ANP was used to determine weights of the elements. The results showed that the order of enjoyment in terms of studied criteria is as follows: Borujerd, Selsele, Azna, Drood, Dore, Kuhdasht, Khorramabad, Aligodarz, Poldokhtar, and Delfan.
مقالات پژوهشی
Mansoor Shahvali; Samira Behroozeh
Abstract
Having food security is the most basic human right that unfortunately many people lack it around the world (Razaghi, 2009). This indicates the necessity of paying attention to improving nutrition and food security of villagers with an approach to Islamic-Iranian model because optimal nutrition requires ...
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Having food security is the most basic human right that unfortunately many people lack it around the world (Razaghi, 2009). This indicates the necessity of paying attention to improving nutrition and food security of villagers with an approach to Islamic-Iranian model because optimal nutrition requires the necessary eating habits. Identifying factors such as historical background, cultural, social and economic status, beliefs and most importantly, religion are very important that per them, a desirable form of meal is formed in the family and society (Khodadadi et al., 2007). Therefore, recognizing complex issues and identifying appropriate solutions to reduce food insecurity necessitates research on the food security situation (Pothy, 2007); thus, this article aims to address food security and to present an Islamic-Iranian model in order to improve food security in the rural southern part of Kerman Province.
2. Theoretical Framework
Food security is a calculated approach to obviate food and nutritional problems in a defined framework for planning and management development (Zareei Bideskan, & Mehrabi Boshar Abadi, 2012). Several studies in Iran have shown that food security has a relatively good situation at the macro level, but the unfair distribution of food in the deprived provinces has made the access of many poor groups to food difficult; thus, it can be said that there are risks at individuals and household levels (Dini Torkamani, 2003; Ahmadpour Kakhk, 2003; Khezri, 2003; Shakuri, 2004). Accordingly, if knowledge of Iranian traditional foods and Islamic culture of nutrition replace artificial foods and western food culture, both health and hygiene are provided and it is also economical; thus, we can provide the best foods with our own rich resources of food, so the formation of Islamic-Iranian model of food security for rural areas is a priority.
3. Methodology
In terms of purpose, this research is a basic-applied reaserh. The study population included all rural households in the southern province of Kerman including Jiroft, Faryab, Manoujan, Qhale ganj, Kahnooj, South Roodbar and Anbarabad that were 121.849 households and 390 households were selected among them by stratified random sampling. The study instrument was a questionnaire made by the researcher. Its validity was confirmed through content validity by experts and its reliability was estimated by a pilot test. In order to offer the Islamic-Iranian model of food security, SPSS software version 21 was used to analyze the data.
4. Results &Discussion
The highest and lowest of rural household mothers’ ages were respectively 70 and 18 years with an average of 42 years. In addition, the most frequent educational level of mothers was junior high school (36.9 percent) and the least frequenct levels were high school diploma and associate's degree (17 percent). Household population in four groups of 2 to 3 individuals, 4 to 5 individuals, 6 to 7 individuals and more than 8 individuals showed that the third group (6-7) is the most frequent one. The maximum and minimum monthly costs of food in households were respectively 100,000 to 700,000 Tomans. The exploration of food security was done with variables such as "observing the frequency of meals", "the amount of access to food", "meals cooking appropriately", "enough time spent on preparing and cooking" and " required calorie intake". Results revealed that 55.9 percent of the studied households "rarely" eat all kind of the meals. In addition, observing the cooking times of meals of 65 percent of households was "sometimes". The amount of access to food centers was less than "average" for more than half of the studied households. Finally, the four-fifths of households were "very weak" and "weak" in terms of required calorie intake.
5. Conclusions & Suggestions
Providing calories for 70% of households is at the "medium to low" level which is, on the one hand, affected by "access to food material centres", so that only for "one-third" of the studied housholds is possible. That is why they are even unaware of many foods and their effects on body and soul health. On other hand, cooking "lunch" and "dinner" are often happening indicating that they have an increased focus on taking these two meals on time, but they "rarely" have cooking breakfast and snacks in their daily diet. The meals that the "necessary time" is spent to uphold the principles of cooking have high quality. However, in more than half of the studied households the "preparation and cooking time" is low and lower than the "average". Moreover, two-thirds of households' calorie intake is "very low" and for the one-third of the remaining households is "moderate to high". Therefore, the favorable rural households’ food security is met when they realize the body nutritional needs and the aim of nutrition is the "cells satiety" and "body nutrients requirements”. This is fulfilled through full "access" to economic, physical and cultural rights to food and by providing "proper food" for "all meals" with "time" to uphold the principles of cooking to provide the daily family "calories" needs.
To this end, according to the aims of the study, the following strategies are suggested: presenting nutritional educational programs by the mass media for cell satiety not just abdominal fullness; the necessity of paying attention to each region's food culture and training in order to improve it; presenting consulting services directly and indirectly to raise awareness among families about nutrition and food security; creating workshops and manufacturing plants for rural employment to increase incomes; providing proper nutritional guidelines for different age groups to fit the specific characteristics of each region's population; monitoring the nutritional status of the community through periodical data collection, reporting to the relevant authorities to ensure food security.
مقالات پژوهشی
Mohammad Heidari; Vahid Moghaddam; Iman Bastani far; Ahmad Mehrshad
Abstract
Institutionalism is an interdisciplinary approach which applies disciplines as psychology, sociology, anthropology and law to explore economic agents' behavior and provide more accurate presumptions to explain their behavior. Evaluating the institutions can provide an appropriate environment to adopt ...
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Institutionalism is an interdisciplinary approach which applies disciplines as psychology, sociology, anthropology and law to explore economic agents' behavior and provide more accurate presumptions to explain their behavior. Evaluating the institutions can provide an appropriate environment to adopt solutions based on cooperation which result in fastening changes toward economic growth. Institutional economics emphasizes the central role of institutions in development. New institutional economics is an attempt to combine the theory of institutions in the economy. Considering the role of institutions enables the policy makers and planners to know the elements and components of the social system in order to explore the position of economic components and plan to facilitate the economic relations and reduce transaction costs. On the other hand, Iran's approach to economic development after the sacred defense, has been mostly the implementation of structural adjustment prescribed by the IMF. Accordingly, the lack of theoretical foundations and dependence on imported patterns are two key components of economic policy in Iran after the revolution. Institutional economics, regarding the crucial role of institutional environment has insightful implications for recognizing the role of the government in national economy. Institutionalists not only in market failure, but also in reforming the socio-economic and making the streams, give more role to the government in the development process. They emphasize more on the elements of transparency, efficiency and accountability of the government in relation to the size of the government and privatization. Williamson with a new approach, examines institutional economics in four levels of social analysis. He distinguishes these levels with different horizons of change, the priority of each one, and the underlying theories of each. This approach with regard to the institutional structure of the Iranian economy, enables us to investigate the role of oil and the government with more transparency and give policy recommendations to modify the prevailing situation. This paper based on the institutional role of oil in Iranian economy, gives a pathology of Iranian economy in viewpoint of institutional economics and explores the implications of this approach to improve the path to Iranian economic development. This paper applies the four-level model presented by Williamson to explore the role of oil in Iranian economy which implies in turn the rent seeking big government and the resulting fall in institutional quality. The paper also regarding the phenomenon of shortsightedness, expansion of underground economy, crowding out of productive factors, extension of bureaucracy and lack of property rights, proposes some ideas to provide the economy with an accountable government that recognizes and guarantees the property rights of economic agents to pave the way for an Islamic-Iranian model of progress which in turn facilitates the realization of the ideals of the Iranian constitution and the goals of the development (progress) vision. Finally, the paper concludes that the essential precondition of the progress in the rent seeking Iranian economy is the elimination of oil rent through a fundamental change of its institutional position. This is possible only through codification of the fundamental policies of article forty five of the constitution. This article states that Public wealth and property, such as uncultivated or abandoned land, mineral deposits, seas, lakes, rivers and other public water- ways, mountains, valleys, forests, marshlands, natural forests, unenclosed pastureland, legacies without heirs, property of undetermined ownership, and public property recovered from usurpers, shall be at the disposal of the Islamic government for it to utilize in accordance with the public interest. Law will specify detailed procedures for the utilization of each of the foregoing items. So, the article gives the authority of exploiting Anfal including oil and gas to the Islamic state. Codification of the fundamental polices of this article modifies the institutional role of oil and improves the role of the government. We found out that the framework for establishing those fundamental policies of article forty five should include Pattern of ownership, management, administration, operation and monitoring the distribution of the yields among different agents in the economy to guarantee the well-being of all especially the poor; furthermore, recognize and guarantee property rights (physical and intellectual), intra-generational and inter-generational regulations to achieve justice, implementation and monitoring (equality of opportunity, the share of qualified agents, the equitable distribution of resources and the like), establishment of maximum efficiency (allocative and technical) and effectiveness in all processes, formulation, implementation and monitoring indicators of operational protections (depletion rate optimal strategic allocation of assets and similar standards), development and ensuring environmental rights and other rightful, capture of resource rents by the government via the equity (tax and other receipts required) and depositing those revenues in the sovereign and autonomous national development fund to be invested in profitable activities and to use the benefits in the infrastructure of the Iranian economy and make a better business environment for the private sector to make the economic activities more competitive in relation to the world economy.