University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
Demand for International Reserves in Islamic Countries and Determining the Optimal Composition
1
16
30939
10.22059/ier.2006.30939
EN
Journal Article
2015
11
11
In this paper, based on error correction model by using panel data, an empirical analysis of demand for international reserves for 16 Islamic countries is investigated. <br />Besides addressing conventional issues, the model explicitly incorporates the impact of expected export revenues and the impact of the exchange rate system on reserve demand. <br />The results reveal that, short run money market disequilibrium has not any significant effect on demand for international reserves in Islamic countries. In addition, in these countries expected export revenues have positive long run effect while exchange rate flexibility has negative effect on demand for reserve <br />Furthermore, by using the mean-variance approach this paper presents a model for selecting an optimal reserves portfolio for the Islamic countries. The model focuses on the relationship between the composition of reserves and the impact of return and risk of holding each foreign currency. <br />Results reveal that the currency composition of reserves have been influenced by risk and return associated with holding reserves assets denominated in different currencies such that, the share of each currency in composition of foreign reserves have a negative relationship with the risk of each currency in reserves asset.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
Estimation of Industrial Production Costs, Using Regression Analysis, Neural Networks or Hybrid Neural - Regression Method?
17
30
30940
10.22059/ier.2006.30940
EN
Journal Article
2015
11
11
Estimation (Forecasting) of industrial production costs is one of the most important factor affecting decisions in the highly competitive markets. Thus, accuracy of the estimation is highly desirable. Hibrid Regression Neural Network is an approach proposed in this paper to obtain better fitness in comparison with Regression Analysis and the Neural Network methods. Comparing the estimated results from Regression Analysis and Neural Networks with the Hybrid Neural-Regression method has indicated the superiority of the latter method.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
The Establishment of an Efficient Regional Economic Integrative Core Forum among the OIC Members: A Feasibility Study
31
50
30941
10.22059/ier.2006.30941
EN
Journal Article
2015
11
11
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
EU Enlargement: The New Member States and Agricultural Trade Potentials
51
84
30942
10.22059/ier.2006.30942
EN
Journal Article
2015
11
11
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
Islamic Economy and Its Relation with Economic
85
110
30943
10.22059/ier.2006.30943
EN
Journal Article
2015
11
11
The re-evaluation of the scientific method at the 20th marked the inductive method as the scientific reasoning. In the contemporary science, the falsifiability plays an important role. Particularly, the science is considered to be a collection of proposition which describe the observational realities which can be falsify throughout the empirical experiments. Economics as a contemporary science uses the falsification to falsify its own propositions through experiments. <br />According to contemporary science, the Islamic economy, on the other hand, is not categorized as sciences and does not posses scientific features. Furthermore, except for and prediction to study the human behaviour. In fact, economics comparative concepts, it presents a different methodology for the study of its propositions. In Islamic economy, there are fixed and changeable this economy to converse "what it is" to "what it ought to be" This system presents the best economic system according to human nature and divine rules and formulates the new concepts and principles. Comparative concepts of Islamic economy lack scientific qualities and explain the behavioral patterns that are based on premises.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
The Impact of Integration on International Trade Flows: the Cases of EU, OIC & ECO
111
128
30944
10.22059/ier.2006.30944
EN
Journal Article
2015
11
11
The growth of regional trade blocks has been one of the major developments in international relations in recent years. Regional agreements vary widely but, all have the objective of reducing barriers to trade between member countries that in most cases result in increasingly trade flows and economic growth. This paper attempts to explore the results of trade integration in ECO, EU and OIC blocks. For this purpose a “Gravity Panel Data Model” is specified to test the hypothesis in which economic integration among countries can expand trade flows. Accordingly, three types of models are to employ to explain the trade integration between all ECO, OIC, EU members and their major trading partners. The empirical results show that the three regional trade arrangements create trade and increase welfare for the participants. Another result of the study demonstrates that both rich and poor countries within those RTA’s could reap the benefits of integration, even though their economic and social structures are heterogeneous and different.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
The Twin Deficits Phenomenon in Some MENA Countries
129
140
30945
10.22059/ier.2006.30945
EN
Journal Article
2015
11
11
The main purpose of this paper is analyses the short and long run relationship between budget deficit and trade deficit in some MENA countries. The data cover the period from 1971-2000 (and for I.R. IRAN 1 959-2003).The relationship between these variables will be analyses in short and long run by using Johansen cointegration tests, ECM, and Granger causality test. <br />The empirical evidence provides support to the view of Ricardian Equivalence in Iran (Islamic Rep.), Jordan, Kuwait, Morocco, Oman, and Tunisia. But, the empirical evidence proves the validity of Keynesian proposition (conventional view) only Egypt, Bahrain, Oman, and Turkey.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
On The Relationship between Energy Consumption and Real GDP on Iran: An Application of VEC Mode
141
148
30946
10.22059/ier.2006.30946
EN
Journal Article
2015
11
11
This paper examines the causal relationship between energy use and real GDP for the period 1967-2002 in Iran. The results of Phillips- Perron test indicate that the real GDP and the four categories of energy, i.e. coal, oil, gas, and hydroelectric energy are integrated of order one. Besides, the Johansen — Juselius maximum likelihood co- integration tests imply the existence of Granger causality. The VEC models that have been estimated to test the direction of Granger causality support a unidirectional causality from GDP to energy use in short run.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
Days- of- Week Effect on Tehran Stok Exchange Returns: An Empirical Analysis
149
164
30947
10.22059/ier.2006.30947
EN
Journal Article
2015
11
11
The purpose of this study is to concentrate on the investigation of days-of-week effect on Tehran Stock Exchange and its comparison with other emerging markets. Using Classical Linear Regression (CLR) as well as Autoregressive Conditional Heteroskedasticity (ARCH) models it in indicated has indicated that there is significantly positive total return on Saturdays and significantly negative total return on Sundays. There is no significant return on the other days of the week. So, one may suggest that it would be reasonable to sell on Saturday and buy it on Sunday. Comparing this result with that of other emerging stock markets, it can be concluded that days- of- week effect on returns of Tehran Stock Exchange is different from other emerging markets.
University of Tehran
Iranian Economic Review
1026-6542
11
16
2006
04
01
Saving, Investment, and Growth: A Causality Test
165
177
30948
10.22059/ier.2006.30948
EN
Journal Article
2015
11
11
In the second half of the last century, tremendous efforts were devoted to identifying sources of economic success by a few countries and causes of failure by most. In this process a voluminous literature ranging from the neo-classical to Marxist, neo-Marxist, and dependency theories has been developed to answer the question of disparity among different countries of the north vis-à-vis those of the south. They all agree that accumulation of capital (social, human, and physical) was, is, and will remain one of the most significant problems of the third world countries - the south- for economic growth. <br />Traditionally we have assumed that risks and profits drive investment, investment drives growth, and growth, in turn, is the driving force behind saving. More income leads to more savings. In this study, using Iranian data, a causality test has been performed to ascertain whether this sequence is true. We found it is not the case, and saving precedes investment. If so, macroeconomic policies must be directed as increasing saving to foster further investment and economic growth and not the other way around.