صالح قویدل

Financial inclusion is a key driver of economic growth. This study evaluates its effect on economic growth in 59 high-income countries from 2004 to 2021, using panel data and quantile methods. Financial inclusion is measured through banking penetration, availability of banking services, and usage of financial services. The results reveal significant differences among countries, generally enjoying favorable macroeconomic conditions, and indicate slight convergence among them. Positive impacts on economic growth were observed from bank and facility penetration, while ATM penetration and financial deepening showed negative effects. Influential factors include capital, inflation rate, unemployment rate, economic openness, life expectancy, and population growth. The impact of financial inclusion is more pronounced in lower-income countries. Expanding financial inclusion through the Internet and mobile banking, especially in less privileged areas, and enhancing microfinance and user-friendly applications, are pivotal for economic growth.

Choosing the appropriate method of financing and transferring funds to manage business risks is a primary concern for international traders. Therefore, the factors that influence payment method and tool selection in international trade have long been a topic of interest to financial institutions and researchers. The level of commercial risk associated with a country is one of the most significant factors in the theoretical foundations of this field. The level of rule of law in a country is considered a guarantee for contract enforcement and is one of the indicators used to measure commercial risk. Theoretical challenges among economists, varying results from empirical studies on the relationship between the commercial risk of countries and the volume of opening of letter of credit, as one of the most effective payment tools in international trade, and a lack of research on the nonlinear relationship between these two variables in Iran, make it necessary to conduct this study.

THEORETICAL FRAMEWORK:

Based on theoretical foundations, the level of commercial risk of the countries involved in a transaction significantly impacts the choice of payment methods used in international trade. Many studies have shown a significant relationship between the volume of opening of letter of credit and commercial risk. Researchers have shown that traders take into account the commercial risk of the other country when choosing payment methods in international trade. Also, some studies, using regression analysis, have evaluated the relationship between the two variables of the volume of transactions through the opening of letters of credit and the level of rule of law in countries in an inverted U shape. These results show that the high rate of use of this tool is in trade between countries that have a similar level of trade risk.

The current study is a combination of causal and exploratory research, conducted with a practical aim. The research focuses on analyzing the relationships between variables using descriptive-correlational methods, and the statistical population consists of Iran's imports from 79 trading partner countries between 2014 - 2017. The relationship between business risk and the volume of opening of letter of credit is modeled by using the Smooth Transition Autoregressive Logistic (LSTAR) method, which allows for a non-linear relationship between the two variables. If the relationship between the two variables changes over time, it is said that a regime change has occurred, and the threshold level indicates the point of regime change. This pattern suggests that the existence of different values of variables in different regions, or other words, the existence of different regimes, leads to different economic relationships between variables. In the first step, sudden change models assuming a finite number of different regimes were considered. Then, the standard STAR model was introduced with a logistic transfer function, which is a type of sudden change model, due to its smoother and more flexible transitions between regimes.  

According to the results of our study, a direct and nonlinear relationship between the volume of opening of letter of credit and the rule of law in Iran's foreign trade during the period under investigation has been confirmed. In the linear section of the model, the rule of law index of the opposing country had a positive effect on the volume of opening of letter of credit from the total imports of Iran. However, in the nonlinear section of the model, this index had a negative effect. Additionally, the results show that the rule of law had a significant and nonlinear negative effect in the previous period, while in the current period, it had a significant and linear positive effect on the volume of opening of letter of credit. Therefore, the hypothesis of the existence of a nonlinear relationship between the volume of opening of letter of credit and the rule of law in Iran's foreign trade has been confirmed.

CONCLUSIONS & SUGGESTIONS:

The results of both the linear and non-linear sections of hypothesis indicate a significant correlation between the rule of law index of Iran's trading partners and the volume of opened letter of credit from Iran's total import volume. This finding is consistent with the theoretical foundations presented in the study, as well as the views expressed, which suggest a significant relationship between these two variables. Moreover, the results of hypothesis two demonstrate a non-linear relationship between these two variables in Iran's foreign trade during the years 2014-2017. It can be concluded that an increase in the rule of law index of Iran's exporting countries initially resulted in an increase in the volume of opening of letter of credit. However, in the long run, the volume of opening of letter of credit decreased, and other methods of transferring funds replaced this financial instrument. This finding also confirms the hypothesis of Niepman and Eisenlohr regarding Iran's economy. It should be noted that this study only used data on the volume of opened letter of credit resulting from Iran's imports, which was accessible through the IT office of the Islamic Republic of Iran Customs. Data on credit document opening resulting from exports by Iranian traders, which was carried out by foreign importers in their own country, was not available and therefore not considered. For future research, it is recommended to re-estimate the model of this study while taking into account the statistics of opening of letter of credit in Iran's export sector, after the possibility of using the SWIFT system for Iranian banks and accessing its data.

The present study examines the quantitative effects of uncertainty regarding government expenditure policy (current and construction expenditures) on Iran's economic activity. Uncertainty is a situation where future events or their probability of occurrence are not predicted. In the real world, the economy is full of uncertainty of economic factors, which leads to risk and danger in the decision-making space of economic factors and affects their behavior. In this article, we intend to use the structural vector autoregression model (SVAR), which are known as impulse models; Uncertainty effects created by the government's current expenditures and construction expenditures and other effective indicators such as; Measure the impact of oil prices and financial crises on economic activities such as production and employment. The data of the study was collected from the Central Bank website and the model was estimated using Eviuse software for the years 1365-1399. The findings showed that an impulse from the oil price area causes a 5% increase in production and a 1% increase in employment, also an impulse from the financial crisis area causes a 3% decrease in production and a 12% decrease in employment, respectively. The impulse from the area of uncertainty of current and construction expenses, causes a decrease in order; 12 percent is produced and 7 and 5 percent is employed.

Iran's economy will become bigger in the coming years and the GDP will increase every year. Therefore, the economy will need more labor force, which is provided through population growth. Now this question is raised, will population growth be enough for Iran's future economic growth?During the last 50 years, the situation of Iran's labor market has been such that the supply has increased over the demand, so unemployment has been one of the chronic problems of Iran. For example, the active population in 2021 was about 25.8 million people, of which 2.3 million were unemployed and 23.5 million were employed, that is, the unemployment rate was 9.2% (Statistical Center of Iran, Results of the 2021 Labor Force Survey Plan), but the population outlook in Iran shows major changes in the coming years. This research shows that in the future, the labor market of Iran will not experience unemployment, rather the possibility of labor force shortage will not be surprising. In this article, the supply of and demand for labor in Iran are estimated until 2050, then the gap between the two is predicted.

To predict the labor supply, first, the population by age has been estimated using the cohort method until 2050. Then we consider two scenarios for the labor force participation rate. First, it is assumed that the labor force participation rate will be constant until the year 2050. Second, it is assumed that the participation rate will increase along the trend of "average years of education of women". With the availability of the participation rate and the working age population (15-64), the active population has been estimated until 2050.The demand for labor is estimated according to the production elasticity of employment. With the assumption of this elasticity and the assumption of economic growth at least level for Iran's economy, labor demand is predicted. The average production elasticity of employment in Iran is about 0.7, which means that with economic growth of 1%, the demand for labor increases by 0.7%. Assuming that this elasticity is constant until 2050 and considering the scenario for economic growth (minimum economic growth), the labor demand is estimated for the next 30 years.

 A realistic scenario that predicts the labor force participation rate in line with the trend of "average years of education for women", the active population is predicted to be 30.35 million in 2050. On the other hand, by using the output elasticity of employment and two scenarios for Iran's economic growth, the demand for the labor force has been predicted until 2050. Assuming an average economic growth, 2.6% per year and an output elasticity, 0.7, the demand for labor in 2050 is predicted to be around 40.26 million people. With a realistic scenario, the results show that there is unemployment in Iran until 2030, although the trend is decreasing. In 2030, unemployment will reach zero, which means labor supply and demand will be equal. From 2030 onwards, the excess demand for the labor force begins with an increasing trend, so that in 2050 the excess demand for the labor force reaches about 10 million people.

In this research, labor supply and demand have been predicted using very conservative and reasonable assumptions. The results show that with a minimum economic growth rate (1% per year) and the maximum increase in the labor force participation rate up to 50% in 2050, there will still be a lack of labor demand. There are three ways to reduce excess demand. The first is to increase productivity. Through improving technology and human capital through education, health, skills, etc., labor productivity can be increased. With the improvement of technology and the use of advanced machines, the use of robots, the mechanization of various economic sectors, and the use of artificial intelligence (IA), the majority of excess demand can be provided.  The second is to use of foreign labor. Many countries use the supply excess of foreign labor from countries that face supply excess to offset their excess demand. The third way is to increase the labor force participation rate of women in Iran.It should be noted that the assumption of other conditions is always met in any forecasting. Among these conditions are sanctions, oil exports, technology, environmental changes, and so forth. For example, if the sanctions are lifted, Iran's economic growth can up to 7 percent annually. Higher economic growth leads to higher demand for labor, and excess demand occurs sooner. Therefore, changing any of the unexpected factors in the future can increase or decrease the forecast of supply and demand.

Several factors such as productivity, per capita income, and oil income effective on the real exchange rate. In addition to examining the factors mentioned above, this article examines the change in taste of Iranian consumers from domestic to foreign goods and its effect on the real exchange rate. For this purpose, a theoretical model of consumer behavior, which is a utility function including domestic and foreign goods, has been presented and linked to the real exchange rate. Then, using time series regression with the implicit trend and state space technique, the effect of taste on the real exchange rate has been estimated dynamically during the years 1974 to 2021. The result of the estimation shows that the effect of taste has dynamically reduced the real exchange rate so that the width from the regression's origin has decreased yearly. Also, the effect of productivity and per capita income on the real exchange rate is significant, but the effect of oil income is not significant. The practical results show during the last 47 years, the tastes of the Iranian people have tended to consume foreign commercial goods with a mild trend, and this has been one of the causes of the real value of the national currency.

The purpose of this article is to investigate the effects of macroeconomic variables such as exchange rate, interest rate, economic growth and real money residual growth on the financial stability in the Iranian insurance industry. For this purpose, Markov switching method is used. The ability to account for changes in the relationship between macroeconomic variables and the financial stability of the insurance industry over time is one of the most important features of the Markov switching method. The period under study is from the first quarter of 2005 to the fourth quarter of 2015. The results show that the effects of macroeconomic variables during the first regime (including the first quarter of 2005 to the third quarter of 2008) and the second regime (including the fourth quarter of 2008 to the fourth quarter of 2015) on financial stability of the insurance industry are different. So that the effects of exchange rate, interest rate and economic growth on the financial stability of the insurance industry in the first regime are the opposite of those of the second regime. This is while the growth of the real balance of money has a direct link to the financial stability of the insurance industry in each round of the regime, but in the second regime, which is a recessionary regime, its effect on financial stability is insignificant. Also, the findings show that the stability of the first regime is more than the second regime, so that if the insurance industry is in regime one in the previous period, with a probability of 94% it will be again in regime one.

The purpose of this article is to investigate the impact of government spending policy uncertainty on the real sector of the economy in recession and boom regimes using the rotation model and Markov switching regime change in the period from 1365 to 1399. Considering the importance of the effect of economic policies and the uncertainty of the government's spending policy on the real variables of the economy such as production and employment; Clarifying the relationship between the uncertainty of the government's spending policy and economic activities can open the way for the country's macro-planning. The findings showed that the uncertainty of current and construction expenditures, oil, monetary and currency shocks, financial crisis, and sanctions in recession conditions cause a decrease in GDP and employment. In addition to this, the duration of production stagnation and boom period is 20 and 15 years, respectively, and these values for employment are 21 and 14 years, respectively. Therefore, the rate of permanence during Iran's recession has a high probability. These factors increase the risk of investing in Iran and lead to a decrease in production and employment.Key words: uncertainty, government spending, Markov switching regime change model, Recession and boomJEL Classification: C24, G32, G19.

Income inequality is an important obstacle to the growth and expansion of social welfare. Developed societies use various tools to overcome this problem. The social security system is one of the most well-known of these tools. In this study, the effect of social security costs on the convergence of income distribution in the provinces of the country in the period 1397-1387 has been investigated. In this research, the subject has been studied through spatial methodology. The results showed that the long-term costs of social security have a significant negative effect on the convergence of income distribution in the provinces, but short-term costs have no effect. Absolute and conditional convergence coefficient shows that the provinces of the country converge to a level of income distribution in the long run. The estimated convergence velocity is 0.061 in the absolute convergence state and 0.075 in the conditional state. The findings also showed that inflation and human capital have a positive and significant effect and Internet penetration has a negative and significant effect on the convergence of income distribution. Kuznets hypothesis was confirmed in the provinces. The study of the effects of overflows in 1397 showed that the long-term costs of social security in one province affect the neighboring provinces and Isfahan province due to its proximity to 9 provinces has been able to have the greatest effect of overflows on other provinces.

Forward-looking information or statements refers to information that has a future semantic burden. This information includes information about the company's future that may later be presented as historical information (actual results). Forward-looking information presents the manager's beliefs and expectations as factors affecting the company's performance and providing assumptions and assumptions to shareholders and investors. The primary purpose of this study is to investigate the effect of forward-looking information disclosure on stock price response. For this purpose, the data of 140 manufacturing companies listed on the Tehran Stock Exchange and Over-the-counter (OTC) stock market during the years 1394 to 1398 are analyzed through combined data. In order to investigate the effect of forward-looking information disclosure on stock price response, Olson (1995) model is used. Then through the Z Wong test, the significance of Olson (1995) model determination coefficients and the first hypothesis model are compared. Also, to measure the disclosure of forward-looking information, the impact of forward-looking words is first examined by financial analysts following research (Hassanin and Hosseini, 2015). Using the Savara method, one of the multi-criteria decision-making methods, words influencing investors' decisions, is weighted. The results of the first hypothesis show that the disclosure of forward-looking information in the studied samples did not have a high information load and did not cause a stock price reaction. The second hypothesis results show that the two criteria of external uncertainty (sales change coefficient and P/E change coefficient) positively and significantly affect the relationship between forward-looking information disclosure and stock price response.

This study aimed to investigate the effect of social security expenditure on the convergence of social welfare in provinces of Iran. Results of estimating models, using Spatial Econometrics, revealed that social security expenditure has a positive and significant effect on the convergence of social welfare in provinces of Iran during the period 2006-2020. Moreover, findings demonstrated that direct and indirect effect of social security expenditure is also positive, in the sense that the increases in social security expenditure has not only improved the convergence of social welfare in all provinces, but its spillover effects have also improved the convergence of social welfare in neighboring provinces on average. Besides, the Absolute Convergence Rate was 0.053 and in the conditional models, its’ values were estimated to be 0.054 and 0.059, respectively. These findings show that the estimated Conditional Beta-Convergence Rate is higher while considering social security expenditures. Additionally, results revealed that the Misery Index and the Government Size have a negative and significant effect, while the Information and Communication Technology (ICT) and Human Capital have a positive and significant effect on the convergence of social welfare. Finally, an estimation of the Spatial Spillover Effects of social security expenditures in 2019 showed that each one of the provinces has the highest direct effect coefficient on itself, and then has the highest effect on neighboring provinces.

This study investigates hedging stock price of the selected industries listed in stock exchange with exchange rate, in order to manage risks of investors in capital market. To do se, the ADCC and DCC models are used. The data for this investigation includes daily stock return of the listed industries and exchange rate during 2008-2020. The results suggest that there exists symmetric correlation between stock price of these industries and exchange rate in both currency crises. Moreover, in both crises, the highest hedging effectiveness is associated with multidisciplinary industry and investment, whereas the lowest effectiveness is for banking. On the other hand, the biggest rate of hedging in the first and second currency crisis belongs to multidisciplinary industry and banking, respectively. The lowest rate of hedging in both crises belongs to investment industry and the highest weighted mean of optimal portfolio in both crises is found in banking industry. The results of this study provide the investors the opportunity to use hedging and asset allocation strategies in optimal way.

This study aims to detect path of currency crisis in different listed industries, in order to manage risk of shareholders in stock market. For this purpose, joint Contagion Test, Joint Coskewness Contagion Test and the Ornstein – Uhlenbeck Process are used. The data used in this study include: stock return of the listed industries and daily exchange rate during 2008 to 2020. The results suggest that currency crises of 2011 and 2018 have transmitted to all export- oriented import- oriented and neutral industries (except mass construction). Moreover, the findings support the fact that starting point of crisis contagion in both currency crises is pharmaceutical industry that attracted currency crises due to its strong correlation with exchange market. The next point of contagion in the first currency crisis is investment industry, and in the second currency crisis, basic metals and oil products. It is suggested that when currency crisis occurred, investors increase weight of basic metals stocks and decrease share of pharmaceutical and computers in their portfolio.

The purpose of this paper is to estimate the effect of macroeconomic resilience on credit risk of the banking system using annual data (2005-2016) for 125 countries in the form of GMM Model. The results show that the components of Good Governance, Market Flexibility and Human Development on credit risk is negative and significant. The effects of macroec-onomic instability variables and the cost of starting a business on credit risk is positive and significant. In addition, the misery index (the sum of inflation and unemployment rates), human development, Nonperformance loan in the past year, and political stability have had the highest degree of impact on the credit risk of the banking system. Also the cross effect of political stability and good governance with macroeconomic imbalances has reduced the credit risk of the banking system. The effect of nonperformance loan in the previous period and the ratio of profit margin to gross income, and the effect of capital adequacy ratios are negative and significant.

Countries' risk in choosing the type of finance products in international trade is important. Firms can buy special trade finance products from banks, the most common of which are letter of credit (LC), cash in advance (CA) and open account (OA). Based on import’s data of Iran from 79 countries during the years of 1393-1396 and using the panel data econometric model, this paper explores the effect of rule of law in origin and destination as a measure of countries' risk on choice of finance products in international trade. The countries are divided into three groups: low risk, medium risk and high risk. The results in this study showed that. Letters of credit are employed the most for export to countries with intermediate rule of law (contract enforcement), and they are used for riskier destination than cash in advances. As countries' risk increases, the use of letter of credit increases, but this relationship is not linear, so firms use less letter of credit with high-risk countries and use more open account. In other words, the effect of countries' risk or the rule of law index on employed the "letter of credit" as one of the important finance products is "hill-shaped".

The purpose of this paper is to estimate the effect of macroeconomic resilience on the probability of bankruptcy of the banking system in its various frameworks (Briguglio - Boorman) using annual data (2005-2016) for 125 countries in the form of models Logite and Probit. Overall results show that the increases of economic resilience and economic growth rate have reduced the probability of bankruptcy. Based on Briguglio model, the effect of increasing good governance and market efficiency on the probability of bankruptcy is negative, and increasing macroeconomic instability has increased the probability of bankruptcy. In the pattern of Boorman, The growth of variables such as good governance, the health of monetary policy, foreign power, export independence, bank credit and reserves have reduced the probability of bankruptcy and increased budget deficits have increased the probability of bankruptcy. Also, the improvement of institutions with the effect on macroeconomic instability has reduced the probability of bankruptcy. The effect of nonperformance loan has been positive and the effect of the ratio of capital adequacy ratio, margin of profit, return on assets and the existence of cash assets is negative.

Natural resource management is of great importance for the countries with abundant resources to ensure capital accumulation and economic growth. The aim of this paper is to estimate capital stock accumulation in Iran on the basis of Hartwick’s Rule. The question is how much capital would be ideal for Iran’s economy? The results show that, based on Hartwick’s rule, capital accumulation is 1.5 to 1.7 times the capital available, which in turn means that a large portion of the annual natural resource revenue is consumed and net saving is negative. When these findings are revalued according to Hartwick’s Rule, adjusted in terms of natural resources rent (particularly oil rent), it indicates that if our economy has allocated 50 to 60 percent of natural resources rent to investment, then the adjusted Hartwick’s rule would be observed. In other words, in the existing institutional arrangement, the optimal adjustment coefficient for allocating resource rent to investment and consumption is between 0.5 and 0.6, demonstrating this fact that Iran’s economy holds the adjusted Hartwick’s Rule at a low level.

The aim of this study is to estimate the effect of e-commerce on employment and productivity in Iran, with an emphasis on B2C. The methodology of econometrics in this research is panel-data approach, based on provincial seasonal data from 2013 to 2015. Evidence shows that there are 14 million online shoppers and 17,000 online shops in Iran, and 2.4 percent of GDP and 11 percent of the retail trade is done electronically. Estimate in different ways indicate that e-commerce with an emphasis on B2C, increases economic productivity. The elasticity of productivity with respect to e-commerce, is estimated to be between 0.006 to 0.0108. In other hands, one percentage increase in share of e-commerce would increase GDP per capita in provinces between 0.006 to 0.0108 percent. The impact of e-commerce on employment is negative but statistically insignificant. Due to the positive effects of e-commerce on GDP per capita and its insignificant effect on unemployment rate, we conclude that e-commerce improved the productivity of labor during period under study.
JEL Classification: E14, M14, J14.

In this paper, the impact of population aging on economic growth is estimated regarding the population growth factor and life expectancy index. For this purpose, the methods of differentiation, averaging and virtual variables have been utilized through the compilation of the data gathered from 146 countries during 1990-2013 aimed at controlling the unobservable factors. The results demonstrate that the negative impact of population aging on economic growth appears in countries wherein the life expectancy index is above 70 whereas in countries with a life expectancy of less than 70 years the impact of population aging on economic growth is not negative. Furthermore, the results of this research show that the population growth rate has a positive effect on economic growth only when the population above 65 years old accounts for at least 18% and a maximum of 21% of the total population. In countries wherein the population over 65 exceeds the above-mentioned percentage, the positive effect of population growth on economic growth is undermined.

The gap productivity in tradable goods between two countries is a factor of fluctuations real exchange rate and it is called Balassa–Samuelson effect (1964). The BS (Balassa–Samuelson effect) idea originates from inflation gap between the U.S.A. and Japan in the 1960s and the attempts for understanding how much of the inflation gap between U.S. and Japan was due to the productivity gap between tradable goods in two countries. If total factor productivity in tradable goods in country A is more than country B, value of the national currency and deviation of Purchasing Power Parity (PPP) will increase in country A.
This effect explains why the non-tradable price of goods in countries with a lower productivity is less than other countries. This difference of price makes a deviation of PPP. For example, annual average inflation rate during 1955-1970 in Japan was 5.4 percent. In the same period, annual average inflation rate in the U.S.A. was 2.6 percent. The gap of inflation rate between Japan and the U.S.A. had been 2.8 percent (Imai, 2010); consequently, the value of Japanese currency increased, too. When we assume that there are two goods in the economy, namely, tradable and non-tradable goods, then, labor is a factor of production. If productivity of tradable goods in Japan is more than the U.S.A., then the price of tradable goods in Japan should be less than the U.S.A., but it is not true because tradable goods are traded between countries and have a unit price in all countries. Based on profit maximization condition that is , when increases and is not changed in tradable sector, then, of tradable and non-tradable sectors will increase, because labor is mobile between tradable and non-tradable sectors. The result is the increasing price of non-tradable goods in Japan while the non-tradable price in the U.S.A. is constant. This difference in the price of non-tradable sector between Japan and the U.S.A. is explained deviation of PPP in Japan.
In this paper we estimated BS effect in Iran. Total factor productivity in Iran is less than the U.S.A., then, part of deviation PPP in Iran is the productivity gap between Iran and the partner’s countries with which Iran trades.
Literature Review of Balassa–Samuelson Effect
We assume two countries 1 and 2, two sectors tradable and non-tradable and define the following notation: Productivity of non-tradable goods in country 1.
Productivity of non-tradable goods in country 2.
Wage rate in country 1.
Wage rate in country 2.
And : price of non-tradable goods in 1 and 2 countries.
And : price of tradable goods in 1 and 2 countries.
Assumptions: 1. Same productivity in two countries and equality to unit:
2. Labor is full mobility between tradable and non-tradable goods within country.
3. Unit Price Law in tradable sector: Now we can write for country 1:
And for country 2: Then
Divided Eq.6 to Eq.7
Now if , then , and it is BS effect. In other words, higher non-tradable price in country 1 is due to higher productivity in tradable goods in country 1. This is one of the causes of PPP deviations. When productivity in tradable sector increases, wage is increased and labor will move to tradable sector. Then non-tradable wage increases up to equilibrium in two sectors. In this situation, price of non-tradable goods increases and we have deviation of PPP (Hamano 2012).
According to Purchasing Power Party (PPP), Law of Unit Price, and assuming no transportation costs for tradable goods, the price of them in all countries is same, but non-tradable goods have a different price in other countries. The Balassa–Samuelson indicated that the different price of non-tradable goods is due to the productivity difference in tradable goods between two countries. Then, a part of inflation gap or deviation of PPP (condition of fixed exchange rate) is due to the productivity gap of tradable goods in two countries. Note that the inflation gap between two countries is due to several factors and one of them is Balassa–Samuelson Effect.
This paper estimated BS effect in Iran with comparing inflation rate of Iran and the U.S.A. during 2002-2011, and the nominal exchange rate (Rials/ U.S. $) is fixed. According to Emai (2010), the gap of inflation rate between two countries is the decomposition of productivity gap of tradable and non-tradable goods in two countries, and then we estimate BS effect. We assumed that the industrial and service sectors are a proxy for tradable and non-tradable sectors. The result shows that, BS effect in Iranian economies had been -2.1 percent during 2002-2011. This means that, the real devaluation of Iranian Rials as a 2.1 percent during 2002-2011 is reasonable, while in fact, Iranian economies show that, both real devaluation of Iranian Rial and Iranian Rial against U.S.'s $ real appreciation during 2002-2011 was about 13.6 percent (annual average gap inflation rate between Iran and U.S.). In other word, when annual average inflation rate of U.S. at the same time was 2.2 percent and BS effect was -2.1 percent, the annual average inflation rate of Iran was 0.1 percent which is considered reasonable in the same period of time.
The final result of this paper is that high inflation rate in Iran (the deviation of PPP in Iran) is not due to the productivity gap between Iran and other countries such as the U.S.

In this study, we using direct and indirect coefficients of Input - Output table from SCI 2001, and simulated the effect of imports on employment in the automotive vehicle. The results show that relationships between automobile sector with some sectors with high employment has more than sectors that have low employment. Therefore, increasing imports cars or decreasing barriers of import has leads to significant disturbances job opportunities in automotive sector (directly) and other sectors (indirectly). Therefore, if the government at a time to reduce import tariffs on Auto, it should also pay costs for out of the industry. It is important that the loss of employment. But the relationship can be reduced section 41 and other economic sectors, employment costs at least be reduced. If government decided to exit of industry this paper is important supposed for reduce disturbances.

This paper investigates the financial crises effects on price in oil market. We use data of West Texas Intermediate, OPEC basket, Iranian crude oil heavy and Iranian crude oil light price during 1 July 2000 to 11 April 2011 in weekly format. The approach in this paper is GARCH model and we use ICSS Algorithms for identify breakpoints for financial crisis. The resolute show that the financial crisis has effects on volatility change in three kind of oil price, West Texas Intermediate, OPEC basket, Iranian crude oil light. The financial crisis in 2008 reduced variance stability of return oil price.

Aim of this paper is identify and effect of HDI on dropping out in Iran education system for male and female. For this purpose we use panel data model with 30 provinces during 2001- 2008. In this research dependent variable is dropping out rate and explanatory variables are «HDI» «income per capita»، «unemployment rate» and family size. The result shows that the HDI has a remarkably negative effect on education dropping out rate. If we assume that the income per capita to be a proxy for poverty contrast، decreasing of poverty (increase income per capita) has a positive effect on education dropping out rate، for male is more than female. The unemployment rate has a positive effect on education dropping out rate in male group and not in female. In stylus fact it is true، because in high unemployment economics the wage decreasing and son is the first person for work in family.

The main question this paper addresses is why service sector employment share has steadily increased in Iran over the last decades? For this purpose، we test two effects including Engel and Baumol effects. The time series data are employed to estimate the specified model using the data over the period 1987-2006. The results confirm that the effect of per capita income (Engel effect) on service sector employment share is nonlinear. When the per capita income is lower، the effect is negative، while the per capita income is higher، the effect is positive. Moreover، this paper confirm that the Baumol effect in Iran.