Iranian Economic Review

• executive manager at University of Tehran

Sustainable management of water resources in order to maintain environmental needs requires an economic approach in the agricultural sector. Given the development and transformation of Iran's national economy, the agricultural sector has emerged as the pivot of economic security and viability. In the economic approach, managing demand requires dete...

This research aims to analyze the feasibility of implementing a single currency policy in ASEAN+3 countries such as Indonesia, Singapore, Malaysia, Thailand, Philippines, Myanmar, Laos, Cambodia, Brunei Darussalam, Vietnam, China, South Korea, and Japan based on annual data from 1993 to 2017. In this research, the panel data is analyzed using Poole...

Zimbabwe's experiences with hyperinflation (2000-2008) and dollarization (2009-2019) have implications for investment decisions. The uniqueness of these periods justifies the need for critical analysis as decisions on whether to invest are sensitive to such structural changes. Because of this, the study uses the modified Tobin's Q model to examine...

The electricity supply security has played a vital role in the economic development of Iran. However, a large number of electricity supply disruptions have happened in recent years, which lead to electricity shortage costs in the level of economic sectors. Using a combination of Input-Output analysis and the Linear Programming method, this study me...

In this paper by applying the NARDL approach, we revisit the "fear of appreciation" hypothesis in the case of Iran by analyzing the effects of exchange rate shocks (both appreciations and depreciations) on the various export-oriented industries in the Tehran Stock Exchange. To this aim, the data used include monthly data of both main variables, i.e...

In this paper, we investigate the effects of selected macroeconomic variables on the Istanbul Stock Market Return. We explore the relationship among the Istanbul Stock Market Return, Crude oil price, Inflation rate, and Exchange rate via employing monthly data from 2000-04-01 until 2017-12-01 in Turkey. Based on the Markov Regime Switching Model, w...

The purpose of this study was to compare banks' ratios: return on assets (ROA), the ratio of operating costs to operating incomes (BOPO), and the ratio of financing to total third-party funding (FDR) before and after the spin-off, as well as ROA, FDR, and BOPO between pure spin-off through separation and impure spin-off through acquisitions and con...

This paper examined the asymmetric effects of the exchange rate, and inflation on financial development growth using a model enhanced with oil prices asymmetry to apprise model specification. The research question that has been used implies, do the changes in their asymmetry significantly influence financial development? We employed nonlinear auto-...

This article gives empirical evidence that the real exchange rate can significantly affect sustainable productivity growth, which confirms the hypothesis that the effect critically depends on the degree of the economy's financial development. Following the relatively underdeveloped financial system in Nigeria, its exchange rate reduces the producti...

The soft budget constraint tells us that because there is no strict relation between income and expenditure of state-owned firms, these firms do not have the incentive to increase their efficiency. The solution to this is privatization. However, because privatization creates opportunities for corruption, we see the reproduction of the soft budget c...

The paper focuses on the impact of exchange rate volatility on the trade flow between India and the US. Previous research on India's trade flow has concentrated on India's overall aggregate export across border nations. Many maintain the work on bilateral trade pair-wise, although very few have observed the commodities trade at a disintegrated scal...

Investigating the dynamic relationship between markets has attracted the interest of many researchers; however; assessing the asymmetric volatility spillovers has been addressed by a few studies. In this regard, this study mainly aims to investigate the asymmetric spillovers of oil price return and exchange rate, as the key variables, on chemical i...

Pakistan has been experiencing a decrease in population growth since the early 1990s, which has led to an increasing ratio of the working-age population, known as the demographic dividend. The demographic dividend may lead to higher savings and investment, which spurs economic growth. Given this postulation, the study is the first of its kind to em...

This paper aims at investigating the effectiveness of monetary policy and the role of money in enhancing economic growth and achieving economic stability in Jordan. Therefore, this study uses quarterly time-series data for Jordan over the period 1992Q1-2019Q4 to estimate a reduced form model. The study variables are stationary at the first differen...

The present study aimed to investigate the expandability of Iranian export to Brazil using both micro and macro-level approaches. At the micro-level, Iran's export that keeps pace with the Brazilian market were identified based on relevant conventional indicators including normalized revealed comparative advantage index, Cosine index, and simple es...

Over the years, African countries have implemented various economic liberalization reforms. The impact of such policy reforms on government size has remained a contentious issue in the literature. Thus, this study examined the relationship between openness and government size in Sub-Saharan African countries. The study covered twenty-one African co...

This study analyzes Village Fund as a government policy concerning impoverished communities and cooperatives as a financial institution producing capital in East Java Province. The study used the district and city panel data of East Java Province in 2010-2018. It utilized panel data regression with the Fixed Effect Model (FEM). Estimation results s...

This article aims to analyze the factors that can influence the behavior of Muslim employees to contribute to the endowment of money through salary deductions. The research method used is quantitative. The sampling technique uses a purposive sampling technique. The number of respondents was 156. This study showed that the product knowledge variable...

The importance of monetary and fiscal policy coordination, in view of the financial crises of recent decades, has increased more and this has led countries to adopt coherent and coordinated policy combinations to deal with the adverse effects of crises on the economy. To examine the situation of coordination and interaction between monetary and fis...

Compared to GARCH, ARDL, VAR, and similar methods that are commonly used for stock market analysis and portfolio pricing, quantile regression has proven to be more advantageous. In this study, we combine the quantile regression with wavelet decomposition to analyze different investment horizons in Tehran Stock Exchange. The discrete wavelet decompo...

Nigeria is unarguably one of the countries with its citizens widely spread across the globe and the income earned forms a huge chunk of remittance back to Nigeria. The study focuses on what implications remittances may have for unemployment in Nigeria. Remittance is treated as being endogenously determined by the number of migrants, the nominal exc...

This study aims to find out the profit efficiency and determinants of profit efficiency in Boro rice cultivation in the Manikganj and Dhaka districts of Bangladesh. It also focuses on technology adoption and the effect of technology adoption on the profit efficiency of Boro rice cultivation in Bangladesh. Face-to-face interviews with one set of str...

The interaction of macro prudential policy and monetary policy depends on the relation of objectives. Central bank authorities focus on price stability but may not concern with financial stability. Hence, the variables that influenced financial markets are various and are determined from risk management perspectives. This paper survey the interacti...

When External net assets change, a country's money supply and the central bank's debt will change. The exchange rate is much more critical in countries like Iran because a significant portion of the government's revenue comes from the External exchange of natural resources. So, the exchange rate directly influences the government's financial situat...

Reducing inequality and establishing social justice by balancing the distribution of income and wealth is one of the main concerns of economic policymakers which has been emphasized in the constitution of Iran. Explaining the relationship between inequality and its causes has been one of the most challenging areas of economic debate in recent decad...

The aim of this study is to identify and evaluate the factors that influence credit risk by employing a multinomial logistic regression approach. For this purpose, in the first phase, indicators that affect the credit risk assessment of natural customers were identified using documentation and library method. Then, the final data on the indicators...

This study examined the dynamics of monetary policy and output growth in the Economic Community of West African States between 1980(Q1) and 2019(Q4). Time-series data spanning was utilized from 1980 (Q1) to 2019 (Q4), which was sourced from the World Bank and International Monetary Fund databases. This study uses the panel co-integration ARDL appro...

Projections of Persian Gulf Economies are obtained by forecasting their GDPs (constant 2010 US$) with spectral analysis until 2050. Persian Gulf Economies being oil-driven, the special relationship between oil prices and Persian Gulf Economies is unfolded with Multiscale Principal Component Analysis and integrated into the forecasts. The GDPs are d...

The world economy is moving more and more towards globalization, and there has been significant growth in international trade, especially in the last two decades. Increasing economic integration in the world has led to the importance of environmental issues. The present study seeks to investigate the effects of globalization on the quality of the e...

Decentralization is expected, theoretically, to be a route to the efficient provision of local public services. This efficient utilization of scarce resources is further expected to boost economic growth. Despite solid theoretical footings, the existing empirical literature presents mixed results for the presumed positive relationship between decen...

Experiences often by many countries slowing economic growth as a result of central government-centered funding policies. The concern about slowing economic growth is motivating the need for a decentralized approach to development funding to foster economic growth. The research aims to describe the policy influence of decentralizing funding sources...

The exchange rate and international oil prices are vital variables that indicate the impact of external economic developments, agreements, and relationships. Since in countries like Iran, most of the government's revenue comes from exchange earnings from the international markets through oil exports, the impact of two variables on the economy has a...

This paper aims to model the housing price behavior in the Iranian market using three stochastic differential equations: the Black-Scholes model, the Merton model, and geometric Brownian motion with nonlinear GARCH. The data of this study include monthly observations on housing prices between 2009 and 2018. Also, to estimate the coefficients of equ...

This study investigated the occurrence of herding in the Iranian stock market and the effects of gold prices and currency exchange rates on this phenomenon. For this purpose, the rate at which herding occurs in the Tehran Stock Exchange was calculated and analyzed, after which stock price data were classified based on gold prices and currency excha...

Principal-agent model is one of the most practical models in game theory. This model is used when a person or firm assigns a given work or activity to another person by drawing up a contract. The information of parties might be symmetric or asymmetric. In each case, the performance of the principal-agent model is different. Profit-sharing contracts...

The principles of the Islamic moral economy encourage actual economic activity and an asset-driven financing model. Accordingly, the study examines the dynamic association between Islamic stocks and actual economic activity in an emerging Islamic capital market. The study employs various robust time series methods to unveil the relationship between...

Value for money assessment is used in Iran to select appropriate projects for partnership with the private sector by public-private partnership contracts. However, this method merely focuses on the direct effects on the project's level and ignores the economic and social impacts and indirect national and regional impacts. This method also is limite...

This article discusses the sustainability of Islamic CSR programs by assessing the satisfaction and quality of life. A series of semi-structured interviews were conducted with the beneficiaries of the CSR programs through the platform established by the bank, Bank Islam Malaysia Berhad, which is known as the Sadaqa House. Three key informants or ke...

The present study aims to investigate the role of ICT in reducing the effect of information asymmetry on financial development. The research's data associated with the selected countries of MENA during the timeframe of 2004-2015 are extracted from official sources. Then, the research model is evaluated in the short and long term using the dynamic g...

The tourism industry is a significant factor in developing countries' economies. Developed and developing economies have witnessed growth in the tourism industry in the last two decades. The tourism industry has many advantages for a country, including increased employment opportunities, tax revenues, income earnings, and foreign exchange reserves;...

The Government in Iran plays a substantial role in the economy through financial interactions extended to various fields and many organizations. In recent years, investigation of such economic interactions indicates a considerable government debt for 2016, estimated at around 45% of GDP or two times of public budget. Given that Iran experiences tou...

The renewed isolationist rhetoric among countries in the global north has implications for international trade integration. This study investigated the effect of isolationist measures on regional trade integration in Africa. The export supply function was estimated with a dynamic Markov switching model utilizing data between January 2005 and Decemb...

In spite of the massive revenue emanating from oil wealth, the successive government of Nigeria failed to give its citizenry the dividend of democracy owing in large part to their inability to establish a market clearing situation because of inadequate linkage between the sources and the markets (transport infrastructures). An Inquiry into the caus...

The paper reexamines the money demand function in sub-regions of Sub-Saharan Africa and its sub-regions with annual time series spanning between 1980 and 2017. Panel homogeneous Autoregressive Distributed Lag, panel co-integration tests, and Dumitrescu and Hurlin panel causality test were employed for analysis. The empirical results showed a co-int...

This paper examines the factors that affect stock returns in the Tehran Stock Exchange, the largest stock exchange in Iran. In particular, we analyze the conditional relationship between risk and return in Iran by estimating the relationship between various sources of risk-market risk, oil price risk, exchange rate risk, gold price risk, inflation...

This study deals with the question of whether the inflow of migrant remittances causes Dutch Disease or not in India. For this purpose, the study employs the Autoregressive Distributed Lag Model (ARDL) to examine the influence of migrant remittances on the real effective exchange rate spanning the period from 1975 to 2018. In the long run, the stud...

Since the late 19th-century social sciences have been stuck within the deterministic views of natural sciences. Getting further away from the real nature of human beings, social sciences have been explaining the imaginary world of scientists. In economics, homo economicus plays the leading role in the imaginary world of economists. However, recentl...

Volatility spillovers among financial markets suggest some sort of information transmission between these markets. The present article uses the VAR-BEKK-GARCH approach to investigate volatility spillovers among financial markets in Iran, including stock, foreign exchange, and gold markets pre and post-JCPOA. To compare volatility spillover among fi...

This study aims to investigate poverty risk and inequality decomposition based on the education level of Iranian urban household heads in 2017. A logistic regression model is estimated with the poverty status of households as a dependent variable, a set of control variables (gender and age), and the education level of household heads as explanatory...

This study empirically investigated remittances' short-run and long-run effects on actual exchange rates. Further, it examined the impact of remittances on resource movement from the tradable to the nontradable sector in the CFA franc and non-CFA zones of sub-Saharan Africa (SSA). A panel-based, Pooled Mean Group estimation technique was adopted to...

Economists have always noticed the immigration of laborers since it can change the economy of countries. In the literature of international economics, labor force immigration is studied by the mobility of factors of production and trade. In this case, empirical studies have found substitutive and complementary relationships between the two, which n...

The purpose of this paper is to consider the relationship between inflation and government size in OPEC countries during the period 2000-2015. Estimation results from different linear panel models with a quadratic forms of government size and non-linear panel models including static and dynamic panel threshold models suggest that there is a non-lin...

The coincidence of banking and currency crises since the 1990s has attracted the attention of many economists to the causal relationship between them. The current paper aims to determine the potential indicators of banking and currency crises and their causality in the Iranian economy during 1980-2018. For this purpose, we first study the different...

This study examined the impact of financial liberalization and trade openness as well as their interactive effects on the growth of the Nigerian economy using annual time-series data for the period, 1981 to 2018. The results of the Augmented Dickey-Fuller (ADF) unit root test show that all the variables are stationary at the first difference and th...

We study the impact of internal governance mechanisms on the operational risk management provided by deposit banks of Turkey as a Basel-compliant representative banking system. Drawing from internal audit, internal control, and risk management literature, we consider the impact of characteristics of these mechanisms on the degree of operational los...

Systemic risk is the collapse and crisis in the financial system that is caused by default or crisis in one or more firms. In this paper, the conditional value-at-risk (o) method is used as a measure for this kind of risk. This measure is going to be calculated for the five largest banks of the country including Mellat, Tejarat, Saderat, Parsian, a...

The orangutan is a famous and unique species of big ape living in arboreal forests and can only be found in Borneo and Sumatra Island. The orangutans are divided into two subspecies; Borneo orangutan and Sumatra orangutan. They are critically endangered species due to uncontrolled, rapid development activities. In Malaysia, there is an estimation o...

Resource-rich developing countries are forced by economic fluctuations due to international commodity price movement. One way to reduce the volatility and adverse effects is to establish institutions such as Sovereign Wealth Funds. However, the way this fund is managed is important. Iran, as a resource-rich developing country, suffers from economic...

All around the world, the TV broadcasting business has had an enormous impact on the social, political, and economic fields. Therefore, in general, most of the countries regulate TV business well to produce an optimal impact on the nation. In Indonesia, the TV broadcasting business is growing very significantly. After implementing Broadcasting Act...

Reclassification risk is a downside for insurance applicants in the face of a sharp increase in premiums due to the deterioration of individual health conditions. Guaranteed renewable (GR) health insurance directly protects the applicants against the mentioned risk. The reason for this support is the existence of a prepayment in the first insurance...

Sub-Saharan Africa (SSA) is one of the regions of the world that exhibits high disparities in income distribution. Income inequality has remained ubiquitous and pronounced across countries in the region, with Sub-Saharan Africa ranking closely behind Latin America as the second most unequal region globally. This paper specifically investigates the...

The recent events on the global scene have pointed once again to the importance of the increasing level of interdependence among markets. Economic volatility in one or several countries is easily transmitted to neighbors and even beyond. Consequently, national economic issues need to be considered from a regional/global perspective. Therefore, this...

From the constitutional revolution (1907) to the Islamic revolution (1979), Iranian governments had been fluctuated sharply (longevity of government from 3 days to more than 12 years). This situation was the result of permanent competition between the king, parliament, government, interest groups, and also international political conditions. In thi...

This study reexamines Squalli-Wilson's measure of trade openness from the perspective of services. An attempt was made to compose all modes of service supply to form a composite measure of service openness that has rarely been used in trade literature. A global sample comprising different regions based on cross-country data was applied to test the...

This paper estimates the price and income elasticities of domestic petroleum consumption in Nigeria using the Johansen cointegration and vector error correction model approaches. The paper used annual time series data for domestic petroleum consumption, petroleum price, and real income over the period 1985 to 2018. The result indicates the existenc...

The liquidity crisis is the major driver of banks' failure in Nigeria as a failure of some banks in the past was brought in connection with a liquidity problem. We examined the CG and LM of Nigerian banks by obtaining data from annual accounts and reports of the 10 DMBs from 2012 to 2018. Data were analyzed using the Generalized Method of Moment (G...

Stock market behavior is a contentious matter among researchers in the field of finance. In literature, various conventional and behavioral explanations exist for real-life stock market behavior. This study considered and incorporated all three schools of thought on the matter and applied a nonlinear model namely a threshold quantile autoregressive...

This article examines whether there is a wage gap premium in the formal sector versus the informal sector of the Iranian labor market. We used household survey data conducted by the Statistical Centre of Iran for 2001, 2006, 2011, and 2016 to investigate the characteristics of the informal sector as well as differentials in wage structures between...

This paper uses a dynamic stochastic general equilibrium model to investigate the effect of fiscal and monetary policy on the stock market in Iran. Results show that a positive money shock leads to a rise in output, stock price index, and inflation. In addition, the response of the stock demand to money supply shock is negative. We found that a pos...

Iran has faced oil and banking sanctions since 2012. Following the sanctions and instability of the exchange rates, the Rial has sharply lost its value. Rising economic unrest has widened the gap between the official exchange rate and the parallel market rate. However, the depreciation of Iran's Rial does not show a uniform trend, and the decline p...

There are clear signs of climate change in Africa, while the continent has limited economic and financial muscle to generate clean, low-carbon, greener, and energy-efficient production activities needed to improve environmental quality. Hence, this paper examines the impact of structural change and financial development on carbon dioxide emissions...

Determining the extent to which the bakeries of Gonabad, Iran have succeeded in the optimal use of certain resources and to explore the possibility of production increase with a certain set of production resources and factors, the technical efficiency of bakeries in this city was estimated. Data were collected from 98 bakeries in Gonabad using simp...

In international trade relations, the US dollar is prominently used for invoicing, and not only for a trade involving the United States but also for other countries, it is the so-called vehicle currency. This paper analytically explores the optimal policy and its implications for welfare in a two-country general equilibrium model with non-tradable...

This paper is to study the stochastic convergence toward cross-average across 50 US states over the period from 1976-2018. To the end, we apply the quantile unit root test and several conventional linear and nonlinear unit root tests. While conventional unit root tests reject the stochastic convergence hypothesis for most of the states, we have fou...

Although financial development facilitates economic growth, inflationary conditions can negatively affect the relationship between financial development and economic growth. This paper studies the threshold inflation rate for the effect of financial development on economic growth by using the panel smooth transition regression (PSTR) model and the...

This research attempts to measure the knowledge economy by Combining Inductive and Deductive Approaches. In this essay, a comparison between different perspectives on the knowledge economy was done, and then the knowledge economy is defined as "achieving higher productivity levels by utilizing knowledge". After examining factors affecting productiv...

The economic status of society does affect both kinds and amounts of violent crimes. This paper is going to analyze the relationships between some economic variables in Iran, on one hand, and violent crimes on the other: Economic growth, misery index, and female employment rate are the main economic variables in this research. Proxies of violent cr...

Access to finance through financial institutions is highly dependent on financial literacy. The basic purpose of this paper is to examine the women's financial literacy level in Pakistan, especially, among women entrepreneurs. This study also tries to determine the effect of the financial literacy of women entrepreneurs on their access to finance a...

Policy rules as one of the most acceptable methods in monetary policies are among the significant characteristics of researches about policymaking. A policy rule states how the policy tools should react to changes in economic situations. Understanding the tools and criteria of monetary policies such as changes in target inflation, changes in relati...

In some production processes, unlike traditional data envelopment analysis (DEA), decision-making units (DMUs) consume widely used inputs since increasing them is more favorable for improving efficiency. Plastic wastes and rotten fruits are two instances of widely used inputs for recycling factories. In this paper, weak disposability of inputs will...