Iranian Economic Review
Volume:11 Issue: 17, Autumn 2006

Resource mobility (RM), generally speaking, - whether physical resources, human resource or financial resources, - is a key factor in economic performance. In this paper we are examining some dimensions of «RM» with respect to «Islamic financial institutions» (IFIS). We want to indicate the prerequisites which are necessary to make IFIS more efficientin RM. One hypothesis is that doing tasks electronically can enhance RM. First section is devoted to introductory notes and methodology, second section deals with potential significance of IFIS and their relationship with RM. In the third section, while mentioning the factors affecting the efficacy of IFIS regarding RM, the relevant test will be performed. Finally we end up the paper with some concluding remarks and policyimplications

This paper proposes a procedure for an effective investment allocation: a Linear Programming Model using a Social Accounting Matrix (SAM). The Gross Regional Products (GRP) is the objective function. Several constraints, such as job creation for different levels of human force, income distribution inequality, supply and demand constraints for products, are considered in the model. The economic sectors of the region for a certain proportion of products are ranked with respect to the above objective function and constraints for any level of investment. The model is examined with the SAM of the Golestan Province in Iran for the year 1993/1994. The study shows that the model introduced can lead to a maximum level of GRP with respect to other goals and constraints for any level of investment.

Income inequality can partly be explained by mean income through the labour productivity, employment and participation rates and it has been tested here that corruption has statistically significant effect on economic (income/expenditure) inequality.Increase in transparency (or reduction of corruption) reduces inequality through reduction of the shares of top 20 percent, while increasing the share of bottom 80 percent of the population. Thus, corruption only favoured the top 20 percent of the population who in one way or other, usually are related to the political power.

Economic freedom includes personal choice, voluntary exchange, freedom to compete, and protection of person and property. Institutions and policies are consistent with economic freedom when they provide infrastructures for voluntary exchange, and protect individuals and their property. Legal and monetary arrangements are particularly important: governments promote economic freedom when they provide a legal structure and law-enforcement system that protects the property rights of owners and en-forcescontracts in an even-ended manner. They also enhance economic freedom when they facilitate access to sound money. On the other hand economic institutions that promote economic freedom are usually regarded as being fundamental for the process of economic growth.However, economic freedom also requires governments to refrain from many activities. They must refrain from actions that interfere with personal choice, voluntary exchange, and the freedom to enter and compete in labor and product markets and specially reduce the taxe rates. Since economic freedom could generate economic growth, government tax income will be increased but it depends on the optimal degree of economic freedom.Because the relationship between economic freedom and government tax income is U shape and has optimal point. In this paper, relationship among the economic freedom, economic growth and government tax revenue in MENA countries (During 1980 to 2002) have been measured and U shape hypothesis of relationship between economicfreedom and the government tax income has been tested1.

The rates of long run economic growth and the degree of economic interdependence among nations are related. These dependencies, linkages or spillovers are related to different aspects of development mainly to economics and geography. Adding ageography dimension, the Ordinary Least Squares models lead to inefficient estimates and invalid statistical inferences. A nonparametric2 spatial econometric methods and a distance based weight system is used to take into account spatial covariance in terms of the long run economic growth rates of a country’s unobservable characteristics rather than a country’s own observable characteristics, or the cross-country spillover effects amongnations. To measure the degree of development among countries, there is a need to compute these relationships. This variancecovariation reflects more than the existence of common shocks. That is, a country’s growth rate is closely related to its nearbycountries, and trading alone does not appear responsible for these linkages, but being near a large market can contribute more to growth rates.

According to efficiency- wage model, the firms instead of paying the market clearing wages will pay the real wages which enhance the productivity of their workers. In this approach wage is an independent variable which will influence the performance ofthe firms. On the other hand, one can say that when productivity and efficiency increase the firms will be induced to pay higher wages to their workers. In this study we have investigated the relationship between the wages and the productivity for the period1984-2004. The results show that the causality is from wages to efficiency and productivity. Among the variables which are expected to have influence on productivity and efficiency, oil revenue is the dominant factor. Real wages also had a positive andsignificant effect which is consistent with efficiency- wage theory; even though its effect is very small.

This paper examines the causal relationship between stock prices and macroeconomic aggregates in Iran, by applying thetechniques of the long–run Granger non–causality test recently proposed by Toda and Yamamoto (1995). We test the causal relationships between the TEPIX Index and the three macroeconomic variables: money supply, value of trade balance, and industrial production using quarterly data for the period 1372:1 to 1383:4. The results show unidirectional long run causality from macroeconomic variables to stock market. Accordingly, the stock prices are not a leading indicator for economic variables, which is inconsistent with the previous findings that the stock market rationally signals changes in real activities. Contrarily, the macro variables seem to lead stock prices. So, Tehran Stock Exchange (TSE) is not informationally efficient.

This paper represents static and dynamic specifications of the Almost Ideal Demand System (AIDS) based on cointegration techniques and error correction models. Based on Iranian urbanarea’s household expenditure data over the period 1984-2004, itwas found that the proposed formulation for dynamic specification performs well on both theoretical and statistical grounds as the theoretical properties of homogeneity and symmetry are supported by the data. Moreover, with computing short- run and long-runelasticities, it was found that food, clothing and housing are complements, regardless of time horizon.

International migrants are confronted with a series of complex regulations related to the departure from their country of origin, their arrival in their country of destination, and the conditions of their residency in the receiving country. A rapidly increasingnumber of migrants today are Iranians. Major destinations of Iranian migrants are Canada, Australia, the United States, and most European countries. This study will focus on the migration of Iranian to Canada. Iranian (also referred to as Persians) is one of many cultural groups in Canada. The purpose of this article is to understand the number and general situation of Iranian immigrants in Canada, and to provide sound and interesting information to Canadian government officials and to the Iranian public in general.Census data 2001 and custom tabulations (purchased from Statistics Canada) will be used to analysis data. Arc View software will also be used for creating the necessary map and figures. Our finding will enable the researchers to provide policy guidelines forimmigration and other officials in Canada. It is also identifying avenues for future research on Iranian-Canadian immigration.