Iranian Journal of Economic Studies
Volume:2 Issue: 2, Autumn 2013

In this paper we investigate the effects of broadband infrastructure providing high speed internet، on economic growth in developing countries. We have used two different broadband measures to classify developing countries into two groups for the period 1999-2008. By using logistic diffusion model and IV approach، a nonlinear diffusion model is specified. Differences in ceiling of diffusion curve of this technology across countries are defined by pre-existing telephone networks. Then، after predicting broadband penetration rates through the diffusion curve and controlling for fixed effects، the effects of introduction and distribution of broadband on economic growth are estimated. The results indicate that these effects are significant and positive.

In this paper I develop a Proxy Means Tests (PMT) model and examine several targeting lines based on 2008 household survey data to identify beneficiaries for a targeting subsidy scheme in Iran. Based on the findings of this study، setting a cut-off percentile of 40% is expected to provide compensation for almost 70 percent of the poorest households. This will result in the highest accuracy mainly in rural areas where poverty is much more severe than elsewhere in the country. Substituting the current scheme which covers almost all households in Iran with a targeting scheme based on the results of the PMT model will allow for either transferring larger amount of money to the extreme poor at the current budget، or reducing the government expenditure in the form of repayment after removing subsidies on fuel and energy.

The aim of this paper is to analyze total factor productivity (TFP) growth and its components in Asian countries applying Stochastic Frontier Analysis (SFA) to the time series data of 44 Asian countries from 2000 to 2010. Using Battese and Coelli approach، TFP is divided into technical efficiency change and technical change. TFP decomposition using SFA method for the years 1998 to 2007 indicates that in 75 % of these economies، the role of technical change in productivity growth is negative. Only in 11 countries technical change had a positive role in productivity growth. The growth of TFP shows that Japan has the highest productivity growth (2. 55 %) and Saudi Arabia، Korea and Hong Kong are located in subsequent positions. Furthermore، due to the lowest technical progress، newly independent countries، such as Armenia، Azerbaijan، Kazakhstan، Kyrgyzstan، Tajikistan، Turkmenistan and Uzbekistan have the slowest TFP growth.

The link between location features and the propensity to start a new firm is a subject that did not get much attention in Iran until recently. This paper is the first attempt on this proposition and is concerned with deliberating the effect of demographical and industrial characteristics of location on start-up rates in Iranian manufacturing industries. To fulfill this aim، regional panel data based on Iranian provinces during 2002-2006 is used. Having employed the GLS method، the results of this paper show that demographical characteristics have a significant effect on new firm formation. Furthermore، we find considerable evidence suggesting that central regions succeeded in increasing the level of start-ups during the period under inspection. In addition، birth rates are greater in regions where GDP growth، security، and urbanization are high and experience abatement in regions with high minimum efficient scale and unemployment. The results of this paper can be considered as the basis of a policy that aims to promote development in borderland provinces. The government could also provide entrepreneurs with incentives to encourage them to create new firms and businesses in these regions.

This paper investigates the asymmetry in volatility of returns for the Iranian stock market using the daily closing values of the Tehran exchange price index (TEPIX) covering the period from March 25، 2001 to July 25، 2012، with a total of 2743 observations. To this end، two sets of tests have been employed: the first set is based on the residuals derived from a symmetric GARCH (1،1) model. The second set is based on the asymmetric GARCH models، including EGARCH (1،1)، GJR-GARCH (1،1)، and APARCH (1،1) models. To capture the stylized fact that the returns series are fat-tailed distributed، in addition to classic Gaussian assumption، the innovations are also assumed to have t-student distribution and GED (Generalized Error Distribution). The results indicate that there is no evidence of the leverage effects in the Iranian stock market، meaning that negative and positive shocks of the same magnitude have the same impacts on the future volatility level. This result is in contrast with the results of most empirical studies، where an asymmetry in volatility of stock returns has been found. This seems to be the result of the governmental or quasi-governmental nature of many companies listed on the Tehran Stock Exchange.

This paper presents an economic evaluation of gas to liquids (GTL) project using “South-Pars” gas field of Iran based on the latest actual performing GTL projects. Iran has the world’s largest reserves of natural gas and can satisfy the projected long-term market demand of GTL products which have lower pollution and higher quality than refinery products. The results of cost-benefit analysis show that GTL project in Iran is fully economical. Sensitivity analyses are conducted and the results show that the capital expenditure is the most sensitive factor in this project، followed by the price of crude oil and the price of feed gas respectively.