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Investigating the Impact of Knowledge-Based Economy Components on Inflation Control in Iran's Provinces

Author

Listed:
  • Mohammad Ghaffary Fard
  • Seyed Abolfatah Sajadi
  • Yazdanali Rezaee

Abstract

The knowledge-based economy is one of the tools of governments to curb inflation in countries in the world today, and governments use knowledge-based economy indicators to make policies to curb inflation. This research, regarding the impact of a knowledge-based economy on inflation control in the provinces of the Islamic Republic of Iran, has been done using the data of the National Statistics Center of Iran in 31 provinces from 2012 to 2018, which is in the form of two models with The use of the econometric method in EGLS and FMOLS (Ordinary Least Squares and Fully Modified Least Squares) has been investigated and evaluated. In this research, the values of the coefficient of determination in the first model are 94 and 93, which shows that the independent variables explain 94.93%, and the Kao test shows that there is no autocorrelation in the model in both models. Chow's test shows that it is a panel in both models, and Hausman's test shows that both models have fixed effects. The results of the research show that the variable composition of the knowledge-based economy has a positive and significant effect on curbing inflation in Iran's provinces, and the variables of gross domestic product, unemployment rate, and government spending ratio have a significant effect on curbing inflation, and the variable of the deposit rate Bank loans have a negative and significant effect on curbing inflation in Iran's provinces.

Suggested Citation

Handle: RePEc:air:journl:v:12:y:2025:i:1:p:108
DOI: 10.5281/zenodo.14902974
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