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Investment Priorities in Iran's Economic Sectors: Application of Input-Output Table

Author

Listed:
  • Hossein Pirasteh

    (Associate Professor at Economics Department, Isfahan University, Isfahan, Iran)

  • Farzad Karimi

    (Instructor at Islamic Azad University, Mobarakeh Branch, Isfahan, Iran)

Abstract

Generating effective employment opportunities is one of the principal challenges faced by development planners in Iran. If investment projects are undertaken on the basis of sectoral priorities in production and employment, the economic and social problems emanating from unemployment will be reduced, helping the Country's process of development. In this paper, an attempt is made to identify key sectors in terms of generating output and employment in the economy of Iran as a results of increased investment. The novelty of our approach is to demonstrate how inter-industry relations (input-output table), investment coefficients, and incremental labor-output and capital-output ratios can be integrated to accomplish the above objective. The empirical application of this approach has revealed the pronounced effect of investment on economic and employment growth potential of the service sector and some of manufacturing subdivisions like clothing and leather, other basic metal industries, food and textile manufacturing and wood paper and printing industries.

Suggested Citation

  • Hossein Pirasteh & Farzad Karimi, 2005. "Investment Priorities in Iran's Economic Sectors: Application of Input-Output Table," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 10(2), pages 119-162, fall.
  • Handle: RePEc:eut:journl:v:10:y:2005:i:2:p:119
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    References listed on IDEAS

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    1. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
    2. A. T. Flegg & C. D. Webber, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: Reply," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 795-805.
    3. Diamond, J, 1976. "Key Sectors in Some Underdeveloped Countries: A Comment," Kyklos, Wiley Blackwell, vol. 29(4), pages 762-764.
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    Cited by:

    1. Sanati, Youssef, 2019. "Der Wirtschaftsstandort Iran zwischen Förderung und Sanktion: Eine ARDL-modellbasierte Analyse ausländischer Investitionen," Arbeitspapiere 186, University of Münster, Institute for Cooperatives.

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