Advanced Search
MyIDEAS: Login to save this article or follow this journal

Sources of economic growth and stagnation in Iran

Contents:

Author Info

  • Farshid Mojaver
Registered author(s):

    Abstract

    There is more than a 10 percentage point difference in the economic performance of Iran in roughly the two decades before and after the Islamic revolution in 1979. This paper aims to explain the difference. A standard measure of Total Factor Productivity (TFP) calculated at the aggregate level shows that over one-third of the difference in economic performance can be explained by the change in TFP growth rates in the two periods. The question is further pursued at the manufacturing level. A time-series cross sectional analysis of the manufacturing sector confirms that TFP growth rates fell after the revolution and did not recover anywhere close to their pre revolution levels even after the Iran-Iraq war. The regression analyses show that decreasing returns to scale and mark-up pricing behavior have developed in the manufacturing sector under the Islamic Republic. A Tornqvist measure of TFP, corrected for market imperfections and non-constant returns to scale technology, is used to explain sources of productivity slowdown. The results show that manufacturing TFP increases with (i) private participation rate in economic activities and (ii) exports. Manufacturing TFP falls with (iii) increase in capital-intensity and (iv) higher entry/exit barriers.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190902916519
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

    Volume (Year): 18 (2009)
    Issue (Month): 2 ()
    Pages: 275-295

    as in new window
    Handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:275-295

    Contact details of provider:
    Web page: http://www.tandfonline.com/RJTE20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/RJTE20

    Related research

    Keywords: TFP growth; institutional change; manufacturing; returns to scale; imperfect competition;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Hadi Salehi Esfahani & Kamiar Mohaddes & M. Hashem Pesaran, 2009. "Oil Exports and the Iranian Economy," CESifo Working Paper Series 2843, CESifo Group Munich.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:275-295. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.