Until recently, attracting FDI was officially a key priority of Chinese economic policy, but there has been a gradual shift in the focus on outward foreign direct investment (OFDI) from China. China's OFDI is characterized by a number of features, due to the specifics of the economic model of this country. Thus, the economic expansion of China and other emerging countries requires the development of a new theoretical model that would analyze the characteristics of foreign direct investment in a specific financial and institutional environment. The theoretical model was developed based on the study of E.Helpman focused on the influence of enterprise political relations on OFDI decisions and the relationship of political relations and productivity in management decisions. Several hypotheses follow from the theory: (a) the thresholds for political ties and productivity required for FDI increase as the recipient country's investment climate deteriorates; (b) the growth of political ties and productivity growth increase the likelihood of OFDI.
{"title":"Theoretical Modeling of the Impact of Political Ties on China's Economic Expansion","authors":"Lilia Ukraynets","doi":"10.22059/IER.2021.81636","DOIUrl":"https://doi.org/10.22059/IER.2021.81636","url":null,"abstract":"Until recently, attracting FDI was officially a key priority of Chinese economic policy, but there has been a gradual shift in the focus on outward foreign direct investment (OFDI) from China. China's OFDI is characterized by a number of features, due to the specifics of the economic model of this country. Thus, the economic expansion of China and other emerging countries requires the development of a new theoretical model that would analyze the characteristics of foreign direct investment in a specific financial and institutional environment. The theoretical model was developed based on the study of E.Helpman focused on the influence of enterprise political relations on OFDI decisions and the relationship of political relations and productivity in management decisions. Several hypotheses follow from the theory: (a) the thresholds for political ties and productivity required for FDI increase as the recipient country's investment climate deteriorates; (b) the growth of political ties and productivity growth increase the likelihood of OFDI.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43817395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study has examined the effect of remittances on the labour force participation decisions and preferences of the individuals towards different employment status and work categories. The data from the rural and urban areas of the two provincial capitals of Pakistan has been collected to cover the main range of the topic. The study adds in existing literature the three major implications of labour market outcomes in response to remittances. First, the estimates of the Logit and Probit model suggest that remittances significantly increase the likelihood to not participate in the labour force. In addition, the differential effect of remittances depicts that as monthly remittances increase from 10,000 rupees to 500,000 rupees, the likelihood to participate in labour market decreases from 0.84 to 0.30 respectively. Second, estimates of the multinomial logit model reveal that among different employment categories, remittances increase the likelihood to participate in non-employment. While in case of participation in labour market, they are more likely to prefer full-time self-employment status. Third, estimates of the multinomial logit model depict that among different work professions, remittances increase the likelihood to participate in self-employment and employer profession. The results of the study suggest policy implication on the reallocation of labour from non-employment to self-employment or employer can generate productive outcomes. Furthermore, incentives in the adoption of self-employment and improvement in ease of doing business are essential to spill over the effect of remittances as job creators.
{"title":"Labour Participation Decision and Preferences towards Different Employment Status in Response to Remittances: Evidence from the Provincial Capital of Punjab and Khyber Pakhtunkhawa (KPK), Pakistan","authors":"Waqas Shair, M. Majeed, Amjad Ali","doi":"10.22059/IER.2021.81637","DOIUrl":"https://doi.org/10.22059/IER.2021.81637","url":null,"abstract":"This study has examined the effect of remittances on the labour force participation decisions and preferences of the individuals towards different employment status and work categories. The data from the rural and urban areas of the two provincial capitals of Pakistan has been collected to cover the main range of the topic. The study adds in existing literature the three major implications of labour market outcomes in response to remittances. First, the estimates of the Logit and Probit model suggest that remittances significantly increase the likelihood to not participate in the labour force. In addition, the differential effect of remittances depicts that as monthly remittances increase from 10,000 rupees to 500,000 rupees, the likelihood to participate in labour market decreases from 0.84 to 0.30 respectively. Second, estimates of the multinomial logit model reveal that among different employment categories, remittances increase the likelihood to participate in non-employment. While in case of participation in labour market, they are more likely to prefer full-time self-employment status. Third, estimates of the multinomial logit model depict that among different work professions, remittances increase the likelihood to participate in self-employment and employer profession. The results of the study suggest policy implication on the reallocation of labour from non-employment to self-employment or employer can generate productive outcomes. Furthermore, incentives in the adoption of self-employment and improvement in ease of doing business are essential to spill over the effect of remittances as job creators.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41386193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Umar Muhammad Dabachi, Suraya Mahmood, Ali Umar Ahmad, A. Jakada, Ahmad Tijjani Abdullahi, Mohammed Atiku Abubakar, Kabiru Kamalu
This paper examined the interaction effect of energy price on the relationship between financial instability, trade openness and non-OPEC countries economic growth. The paper used panel time series data from 1970-2018. In addition, the paper applied second generation approach. The results of the cointegration test revealed a long run relationship among the variables. Moreover, the results showed that financial instability, energy price, and 2014 energy crisis have negative effect on economic growth, while, trade openness has positive effect on the economic growth. Additionally, the results confirmed that the interaction term of energy prices and financial instability is negatively affecting the economic growth, but interaction term of energy prices and trade openness is positively affecting the economic growth of non-OPEC countries (emerging ASEAN economies). However, the results of causality test indicated one-way causal relationship from financial instability to economic growth, energy price to economic growth, and trade openness to economic growth. The empirical findings also suggested that interventions from the policymakers of the emerging ASEAN country could provide rigidity or policies on financial repression, instead of a more flexible financial system, designed to expand growth and stability in focused macroeconomic policies through financial rules. In order to control energy use and stabilize prices in ASEAN countries, there should be a comprehensive energy policy, which may have a negative impact on their economies, as most of the emerging ASEAN countries have not relied on oil revenues.
{"title":"Moderation Role of Energy Prices on Financial Instability, Trade Openness and Economic Growth in Non-OPEC Countries","authors":"Umar Muhammad Dabachi, Suraya Mahmood, Ali Umar Ahmad, A. Jakada, Ahmad Tijjani Abdullahi, Mohammed Atiku Abubakar, Kabiru Kamalu","doi":"10.22059/IER.2021.81634","DOIUrl":"https://doi.org/10.22059/IER.2021.81634","url":null,"abstract":"This paper examined the interaction effect of energy price on the relationship between financial instability, trade openness and non-OPEC countries economic growth. The paper used panel time series data from 1970-2018. In addition, the paper applied second generation approach. The results of the cointegration test revealed a long run relationship among the variables. Moreover, the results showed that financial instability, energy price, and 2014 energy crisis have negative effect on economic growth, while, trade openness has positive effect on the economic growth. Additionally, the results confirmed that the interaction term of energy prices and financial instability is negatively affecting the economic growth, but interaction term of energy prices and trade openness is positively affecting the economic growth of non-OPEC countries (emerging ASEAN economies). However, the results of causality test indicated one-way causal relationship from financial instability to economic growth, energy price to economic growth, and trade openness to economic growth. The empirical findings also suggested that interventions from the policymakers of the emerging ASEAN country could provide rigidity or policies on financial repression, instead of a more flexible financial system, designed to expand growth and stability in focused macroeconomic policies through financial rules. In order to control energy use and stabilize prices in ASEAN countries, there should be a comprehensive energy policy, which may have a negative impact on their economies, as most of the emerging ASEAN countries have not relied on oil revenues.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43027548","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The agriculture sector is a significant contributor to food security and employment in India, where sustainable yield in agriculture is a prime concern. The heavy and improper use of chemical fertilizers persists in technically inefficient agricultural production. This study attempts to evaluate the technical inefficiency of chemical fertilizers' use and measure the potential minimization of fertilizer input without compromising the agricultural yield level. The study uses secondary data from 2006 to 2015 of 28 Indian states and empirically analyses the efficiency of chemical fertilizers use and their impact on agricultural yield by incorporating slack-based Data Envelopment Analysis (DEA). Three chemical fertilizers, namely; Nitrogen (N), Phosphorus (P), Potassium (K), and gross irrigated land area, have been taken as input variables, and States Total Food-grain (STFG) has been taken as the output variable. The conventional slack-based DEA procedure may have bias efficiency estimates, therefore in the second step Double Bootstrap DEA procedure is followed to correct the biasness of efficiency scores which further checks the moderating relation between efficiency scores and agricultural credit using #algorithm1 and #algorithm2 of Simar and Wilson (2007). Findings indicate that fertilizer K has a higher possibility to decrease, followed by P and N. Evidence from double bootstrap establishes a positive relationship between agricultural credit and yield. Hence, farm-level policies, budgetary implications of agricultural credit, and awareness about the proper use of fertilizers will help reduce chemical fertilizer intensiveness in the production and enhance the farmers’ income through input saving strategy.
{"title":"Technical Efficiency of Chemical Fertilizers Use and Agricultural Yield: Evidence from India","authors":"Anup Kumar Yadava, J. Komaraiah","doi":"10.22059/IER.2021.81635","DOIUrl":"https://doi.org/10.22059/IER.2021.81635","url":null,"abstract":"The agriculture sector is a significant contributor to food security and employment in India, where sustainable yield in agriculture is a prime concern. The heavy and improper use of chemical fertilizers persists in technically inefficient agricultural production. This study attempts to evaluate the technical inefficiency of chemical fertilizers' use and measure the potential minimization of fertilizer input without compromising the agricultural yield level. The study uses secondary data from 2006 to 2015 of 28 Indian states and empirically analyses the efficiency of chemical fertilizers use and their impact on agricultural yield by incorporating slack-based Data Envelopment Analysis (DEA). Three chemical fertilizers, namely; Nitrogen (N), Phosphorus (P), Potassium (K), and gross irrigated land area, have been taken as input variables, and States Total Food-grain (STFG) has been taken as the output variable. The conventional slack-based DEA procedure may have bias efficiency estimates, therefore in the second step Double Bootstrap DEA procedure is followed to correct the biasness of efficiency scores which further checks the moderating relation between efficiency scores and agricultural credit using #algorithm1 and #algorithm2 of Simar and Wilson (2007). Findings indicate that fertilizer K has a higher possibility to decrease, followed by P and N. Evidence from double bootstrap establishes a positive relationship between agricultural credit and yield. Hence, farm-level policies, budgetary implications of agricultural credit, and awareness about the proper use of fertilizers will help reduce chemical fertilizer intensiveness in the production and enhance the farmers’ income through input saving strategy.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42916951","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A country’s population carrying capacity is the maximum population that a country can tolerate depending on its resources and environmental conditions. An awareness of a country’s population carrying capacity can be of great help to the development planners of that country. Despite the importance of this variable, few studies have attempted to estimate it, particularly at the country level on which no study was found to have focused. The present study was aimed to calculate the population carrying capacity of Iran using the expanded logistic equation, the generalized extractable energy resources equation, and the Extraction-environmental Kuznets curve (XEKC). The population growth rate of Iran, as a country with abundant primary energy and natural resources, has always been positive and its population now stands at about 83 million. The simultaneous estimation of parameters from three equations using multi-objective optimization showed that Iran’s population carrying capacity was about 95 million. It is important to note that this estimate of the population carrying capacity was based on Iran’s current economic growth. This means that with the growth and expansion of the economy, the population carrying capacity of Iran can be estimated higher. Also, the EKC was established with 99.5% confidence for the Iranian economy, and the value of the per capita income at the turning point of the inverted U-shaped curve was 0.435 billion Rials. Meanwhile, the amount of GDP per capita for the Iranian economy was 0.157 billion Rials at the time of this study, showing that the Iranian economy was on the upward sloping portion of the curve.
{"title":"The Level of Population Carrying Capacity, Natural Resources and Pollution: A Case of Iran","authors":"Ali Hossein Ostadzad, Sakine Owjimehr","doi":"10.22059/IER.2021.81606","DOIUrl":"https://doi.org/10.22059/IER.2021.81606","url":null,"abstract":"A country’s population carrying capacity is the maximum population that a country can tolerate depending on its resources and environmental conditions. An awareness of a country’s population carrying capacity can be of great help to the development planners of that country. Despite the importance of this variable, few studies have attempted to estimate it, particularly at the country level on which no study was found to have focused. The present study was aimed to calculate the population carrying capacity of Iran using the expanded logistic equation, the generalized extractable energy resources equation, and the Extraction-environmental Kuznets curve (XEKC). The population growth rate of Iran, as a country with abundant primary energy and natural resources, has always been positive and its population now stands at about 83 million. The simultaneous estimation of parameters from three equations using multi-objective optimization showed that Iran’s population carrying capacity was about 95 million. It is important to note that this estimate of the population carrying capacity was based on Iran’s current economic growth. This means that with the growth and expansion of the economy, the population carrying capacity of Iran can be estimated higher. Also, the EKC was established with 99.5% confidence for the Iranian economy, and the value of the per capita income at the turning point of the inverted U-shaped curve was 0.435 billion Rials. Meanwhile, the amount of GDP per capita for the Iranian economy was 0.157 billion Rials at the time of this study, showing that the Iranian economy was on the upward sloping portion of the curve.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41774615","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper focuses on the impact of exchange rate volatility on the trade flow between India and U.S. Previous research on the trade flow of India has concentrated on the overall aggregate export of India with a cross border nations. Many maintain the work on bilateral trade pair-wise although a very few have observed about the commodities trade at disintegrated scale. This paper explores Indian export trade at disaggregate by commodity-wise, undertaking 60 Indian exporting commodities to U.S. We apply generalized autoregressive conditional heteroscedasticity (GARCH) based models to gauge the real exchange rate volatility and to discover the shortrun and longrun relationships, an autoregressive distributed lag model is applied on the time series data. The empirical analysis at disaggregate level of export indicates the shortrun as well as longrun effect of exchange rate volatility. However, the estimated shortrun effect which last onto longrun effect is in 16 exporting commodities. This paper provides more specific information about the relationship between exchange rate volatility and bilateral export commodities using individual level data. The finding of the study helps to undertake the view of invariability and considering the industry before policy making.
{"title":"Exchange Rate Volatility and India-U.S. Export at Commodity Level: Evidence from an Autoregressive Distributed Lag Approach","authors":"Mohini Gupta, S. Varshney","doi":"10.22059/IER.2021.81585","DOIUrl":"https://doi.org/10.22059/IER.2021.81585","url":null,"abstract":"The paper focuses on the impact of exchange rate volatility on the trade flow between India and U.S. Previous research on the trade flow of India has concentrated on the overall aggregate export of India with a cross border nations. Many maintain the work on bilateral trade pair-wise although a very few have observed about the commodities trade at disintegrated scale. This paper explores Indian export trade at disaggregate by commodity-wise, undertaking 60 Indian exporting commodities to U.S. We apply generalized autoregressive conditional heteroscedasticity (GARCH) based models to gauge the real exchange rate volatility and to discover the shortrun and longrun relationships, an autoregressive distributed lag model is applied on the time series data. The empirical analysis at disaggregate level of export indicates the shortrun as well as longrun effect of exchange rate volatility. However, the estimated shortrun effect which last onto longrun effect is in 16 exporting commodities. This paper provides more specific information about the relationship between exchange rate volatility and bilateral export commodities using individual level data. The finding of the study helps to undertake the view of invariability and considering the industry before policy making.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45969718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. Ajija, Indah Pratiwi, Wasiaturrahma Wasiaturrahma
This study aims to examine and analyze the factors, which influence house prices from the demand side in developed and developing countries. It was tested using the Generalized Method of Moments with the dependent and the independent variable of the house price index involving real interest rates, credit, economic, and population growth. This study uses 54 panel data which is divided into 31 sub-groups of developed countries and 23 developing countries from 2005 to 2017. This research tries to contribute in observing the role of macroprudential and monetary policies in controlling housing prices globally in both developed and emerging markets as well as looking for the relationship between credit growth and house prices because credit is the closest macroprudential and monetary policy channel to the real sector. The results showed that interest rates, credit, economic, and population growth significantly effect housing prices. Interest rate variables have a negative effect, while credit, economic growth, and population growth have a positive effect on house prices. The influence coefficient's magnitude is different from developed countries to have a more significant influence than developing countries. Another result show that improvement of house price index caused by credit growth enhancement in developed countries greater than in developing countries. Furthermore, the study provides suggestions for policymakers to control house prices due to a reduction, which causes financial crisis. Therefore, the government needs to enter into financial institutions to increase prudence in the housing finance system.
{"title":"How to Control the House Prices Through the Demand Sides","authors":"S. Ajija, Indah Pratiwi, Wasiaturrahma Wasiaturrahma","doi":"10.22059/IER.2021.81571","DOIUrl":"https://doi.org/10.22059/IER.2021.81571","url":null,"abstract":"This study aims to examine and analyze the factors, which influence house prices from the demand side in developed and developing countries. It was tested using the Generalized Method of Moments with the dependent and the independent variable of the house price index involving real interest rates, credit, economic, and population growth. This study uses 54 panel data which is divided into 31 sub-groups of developed countries and 23 developing countries from 2005 to 2017. This research tries to contribute in observing the role of macroprudential and monetary policies in controlling housing prices globally in both developed and emerging markets as well as looking for the relationship between credit growth and house prices because credit is the closest macroprudential and monetary policy channel to the real sector. The results showed that interest rates, credit, economic, and population growth significantly effect housing prices. Interest rate variables have a negative effect, while credit, economic growth, and population growth have a positive effect on house prices. The influence coefficient's magnitude is different from developed countries to have a more significant influence than developing countries. Another result show that improvement of house price index caused by credit growth enhancement in developed countries greater than in developing countries. Furthermore, the study provides suggestions for policymakers to control house prices due to a reduction, which causes financial crisis. Therefore, the government needs to enter into financial institutions to increase prudence in the housing finance system.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46316742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study analyzes the investment index and its improvement strategy in Malang City, East Java, Indonesia. This study is carried out in Malang City. There are 50 respondents (including experts in Investment Agency and Central Bureau of Statistics in Malang City, heads of sub-districts in Malang City, and businessmen in small, medium, and large-sized enterprises in Malang City). The research finding shows that the values of ICOR Lag 1 to Lag 3 are efficient. Therefore, the investment should be done in a long-term period. The potential areas for investment are located in three sub-districts in Malang City.
本研究分析了印尼东爪哇省玛琅市的投资指数及其改善策略。本研究在玛琅市进行。调查对象为50人(包括玛琅市投资局和中央统计局的专家、玛琅市街道负责人、玛琅市中小、大型企业的企业家)。研究结果表明，ICOR Lag 1 ~ Lag 3的取值是有效的。因此，投资应该是长期的。潜在的投资区域位于玛琅市的三个街道。
{"title":"The Investment Index and Its Improvement Strategy","authors":"Nasikh Nasikh","doi":"10.22059/IER.2021.81567","DOIUrl":"https://doi.org/10.22059/IER.2021.81567","url":null,"abstract":"This study analyzes the investment index and its improvement strategy in Malang City, East Java, Indonesia. This study is carried out in Malang City. There are 50 respondents (including experts in Investment Agency and Central Bureau of Statistics in Malang City, heads of sub-districts in Malang City, and businessmen in small, medium, and large-sized enterprises in Malang City). The research finding shows that the values of ICOR Lag 1 to Lag 3 are efficient. Therefore, the investment should be done in a long-term period. The potential areas for investment are located in three sub-districts in Malang City.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46043961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Faridzad, A. Ghasemi, Mahsa Rajabi Nejad, Mohammadamin Mohammadian
The electricity supply security has played a vital role in the economic development of Iran. However, a large number of electricity supply disruptions has been happened in recent years, which lead to the electricity shortage costs in the level of economic sectors. Using a combination of Input-Output analysis and the Linear Programming method, this study measures the producer price index as average costs of Iranian economic sectors after imposing a unique scenario of 30% potential electricity shortage supply. In this regard, we employ an Iranian symmetric Input-Output 14I14 industry-by-industry Table for the year 2011. The results of this study indicate that the most shortage cost occurs for the manufacture of wood and paper products, while the services have the lowest cost after electricity supply disruption. Besides, increasing the costs of non-electricity sectors in the Iranian economy after electricity supply shock is 175.63% on average. The quantitative results are useful for policymakers attempting to set strategic plans to reduce the electricity cost in manufacturing sectors and optimal distribution of limited electricity resources to reduce the overall cost of blackouts.
{"title":"The Electricity Shortage Cost in Iran: An Input-Output Analysis and Linear Programming","authors":"A. Faridzad, A. Ghasemi, Mahsa Rajabi Nejad, Mohammadamin Mohammadian","doi":"10.22059/IER.2021.81589","DOIUrl":"https://doi.org/10.22059/IER.2021.81589","url":null,"abstract":"The electricity supply security has played a vital role in the economic development of Iran. However, a large number of electricity supply disruptions has been happened in recent years, which lead to the electricity shortage costs in the level of economic sectors. Using a combination of Input-Output analysis and the Linear Programming method, this study measures the producer price index as average costs of Iranian economic sectors after imposing a unique scenario of 30% potential electricity shortage supply. In this regard, we employ an Iranian symmetric Input-Output 14I14 industry-by-industry Table for the year 2011. The results of this study indicate that the most shortage cost occurs for the manufacture of wood and paper products, while the services have the lowest cost after electricity supply disruption. Besides, increasing the costs of non-electricity sectors in the Iranian economy after electricity supply shock is 175.63% on average. The quantitative results are useful for policymakers attempting to set strategic plans to reduce the electricity cost in manufacturing sectors and optimal distribution of limited electricity resources to reduce the overall cost of blackouts.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45309735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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 conversion. In 2019, there were eleven sharia banks as the population. This study included five banks in the research samples based on quarterly data availability three years before and after the spin-off. The method used is the two related samples Wilcoxon test due to the abnormally distributed data before and after the spin-off and the independent sample t-test for comparing ROA of a pure and impure spin-off, also used Mann-Whitney test to compare FDR and BOPO between pure and impure spin-off. The results are that ROA after spin-off is higher but insignificant than before spin-off; BOPO after spin-off is significantly higher than before spin-off. FDR after spin-off is significantly lower than before spin-off. Furthermore, an impure spin-off provides a significantly higher ROA than a pure spin-off. Impure spin-off gives higher BOPO but insignificant. Finally, impure spin-off results in a significantly higher FDR than the pure one. These results imply that the limited service coverages due to their small size challenge newborn BUSes to increase their market share. The too-small sizes also become the burden of newborn BUSes to benefit-cost reduction through economies of scale.
{"title":"Does Spin-off Obligation of Sharia Business Units from its Parent Commercial Banks Enhance Their Performance?","authors":"A. Rokhmawati, Desy Desy, E. Halim","doi":"10.22059/IER.2021.81570","DOIUrl":"https://doi.org/10.22059/IER.2021.81570","url":null,"abstract":"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 conversion. In 2019, there were eleven sharia banks as the population. This study included five banks in the research samples based on quarterly data availability three years before and after the spin-off. The method used is the two related samples Wilcoxon test due to the abnormally distributed data before and after the spin-off and the independent sample t-test for comparing ROA of a pure and impure spin-off, also used Mann-Whitney test to compare FDR and BOPO between pure and impure spin-off. The results are that ROA after spin-off is higher but insignificant than before spin-off; BOPO after spin-off is significantly higher than before spin-off. FDR after spin-off is significantly lower than before spin-off. Furthermore, an impure spin-off provides a significantly higher ROA than a pure spin-off. Impure spin-off gives higher BOPO but insignificant. Finally, impure spin-off results in a significantly higher FDR than the pure one. These results imply that the limited service coverages due to their small size challenge newborn BUSes to increase their market share. The too-small sizes also become the burden of newborn BUSes to benefit-cost reduction through economies of scale.","PeriodicalId":38289,"journal":{"name":"Iranian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43710871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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