The Effect of Social Infrastructure on Economic Growth in a Resource-Rich Economy: The Case of Iran
Author(s):
Abstract:
The main goal of this paper is to study the effect of social infrastructure on economic growth in a recourse-based economy. To this end، we introduce the quality of social infrastructure into an endogenous growth model. The set up allows us to see how the resource abundance can influence the quality of social infrastructure and hence economic growth. We use optimal control theory to solve the model. The analytical solution shows that the impact of non-renewable resources on economic growth depends on the models'' parameters. More specifically، we find out that if natural resource abundance leads to deterioration of social infrastructure، it might offset the positive impact of natural resources on economic growth and even might result in lower economic growth rate. We finally calibrate the model for Iran as an energy-rich economy. The calibration results indicate that in order to achieve 8 percent average growth rate، the quality of social infrastructure should improve by at least 4. 3 percent. Moreover، when we ignore the quality of social infrastructure، the optimum economic growth rate is found to be 6 percent. This shows that it is important to take into consideration the role of social infrastructure in estimating long run economic growth for Iran. The result of sensitivity analysis indicates that one percent improvement in the index of social infrastructure results in 0. 42 percent increase in equilibrium growth rate in Iran. This finding has important policy implications for policymakers and social planners in Iran.
Keywords:
Language:
Persian
Published:
Journal of Iranian Energy Economics, Volume:3 Issue: 12, 2015
Pages:
27 to 60
magiran.com/p1376078
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یکساله به مبلغ 1,390,000ريال میتوانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
توجه!
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.
In order to view content subscription is required
Personal subscription
Subscribe magiran.com for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!