Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
Providing Standing Facilities of Central Bank by Using Islamic Financial Instruments: A modern framework for monetary policy making in the interbank return rate corridor
9
32
FA
Hoseein
Meisami
Assistant professor, Monetary and Banking Research Institute
meisamy1986@gmail.com
Kamran
Nadri
Assistant professor, Faculty of Islamic Theology and Economics, Imam Sadiq University
k.nadri@gmail.com
Hossein
Tavakolian
Assistant professor, Faculty of Economics, Allamah Tabataba'i University
tavakolian@gmail.com
This paper tries to evaluate the issue of monetary policy making in the interbank return rate corridor and the possibility of using this model in the context of Islamic banking in Iran. The results, which are extracted based on an analytical-descriptive approach, show that the conventional instrument of standing facilities are not Sharia-compliant and cannot be used in an Islamic context. However, it is quite possible to use the potentials of Islamic jurisprudence (Fiqh) to come up with Islamic alternatives for conventional instruments. In this paper, six Islamic instruments are suggested for designing the interbank return rate corridor in the Iranian banking system. It seems that the usage of these instruments can help the Iranian central bank to design the interbank return rate corridor and to strengthen the interbank market. This paper tries to evaluate the issue of monetary policy making in the interbank return rate corridor and the possibility of using this model in the context of Islamic banking in Iran.
Open Market Operation,monetary policy,Central Banking System,Usury-Free Banking,Sukuk
https://iee.rihu.ac.ir/article_1295.html
https://iee.rihu.ac.ir/article_1295_3d1d54d8980981975a15c54c5bab2dd8.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
The Impact of Knowledge-based Economy on Iranian Endogenous Economy In line with the general policies of resistive economy
33
64
FA
vahid
shaghaghi Shahri
0000-0002-3578-5229
Assistant professor, Kharazmi University
vahidshaghaghi@yahoo.com
Shiva
Alizadeh
M.A. student of Islamic Economics, Kharazmi University
alizad.2015@yahoo.com
One of the main strategies in all economies, developed or developing, to create stability and guarantee a long-run economic growth is to rely on high-tech export and knowledge-based economy. These would also reduce macroeconomic risks and possible vulnerabilities of an endogenous economy. This article studies the effects of knowledge-based economy on the endogenous aspects of the Iranian economy. After reviewing the literature of and major theoretical studies on resilient economy, it demonstrates that the level of high-tech exports is a key indicator for a knowledge-based economy. It uses two indices to describe the endogenous aspects of the Iranian economy. The simple index relates to the non-oil growth in the Iranian economy. The article also proposes a composite index to show how knowledge-based economy contributes to the resilience of the economy. The proposed index consists of the portion of the budget deficit, tax revenues and oil income in the whole government budget. <br />It concludes that in the non-oil economic growth model, the estimated elasticity of simple index of the endogenous economy to knowledge-based economy index in the period 1987-2013 is significant with a positive coefficient of 0.21 percentages. Additionally, by using the composite index as a dependent variable, the elasticity would be significant with a positive coefficient of 0.76 percentages.
Resilient Economy,Knowledge-based economy,Endogenous Economy,Non-Oil Economy Growth,Co-integration Econometrics
https://iee.rihu.ac.ir/article_1296.html
https://iee.rihu.ac.ir/article_1296_8c028f9d3e942ef2b872cbc11a9232e6.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
Analysis of the Independency Degree of Monetary Authority in Iran Based on a Jurisprudential Rule
65
88
FA
Iman
Bastanifar
assistant professor, Faculty of Administrative Sciences and Economics, University of Isfahan
i.bastanifar@ase.ui.ac.ir
Mohammad Reza
Heidari
assistant professor, Faculty of Administrative Sciences and Economics, University of Isfahan
heidari@isu.ac.ir
Vahid
Moghaddam
assistant professor of Ahlul-bayt College at University of Isfahan
v.moghadam@ahl.ui.ac.ir
Economic stabilization as one of the objectives of macroeconomic needs efficient financial and monetary institutions. That is why literature of central bank independency and international experiences in this field became more important and relevant. However, conventional indices of the independency of monetary authority do not due to any Islamic jurisprudential rules related to banking. Therefore, the Islamic banking system needs a new approach for estimation of the independency degree of the monetary authority. In the present study, initially, international experiences on the central bank independency are mentioned. Then, by explanation of the word <em>Gharar</em> it is shown that the scope of the jurisprudential rule of denying Gharar is not only in the field of transaction contractions, but rather in monetary policy. Because future monetary policies concerning the increase or decrease in inflation, effect on the present value of agencies, a monetary policy based on Gharar increases the uncertainty of agents’ behaviors and increases their expected inflation or recession. Then, by classification of the degree of Gharar grounded monetary policy based on certainty, suspicion on, doubt, illusion and complete uncertainty of agencies to monetary authority, in an augmented Philips curve, we prove that, increasing in the degree of Gharar based monetary policy leads to the a mounting increase of inflation. So, the object of stabilization would lead to fail. Finally, we present a pattern for formation of independent monetary authority based on classification of degree of Gharar based monetary policy.
Gharar,monetary policy,Independency of Central bank,Islamic banking
https://iee.rihu.ac.ir/article_1297.html
https://iee.rihu.ac.ir/article_1297_6144d7467d9c8fe0513030b0934093ba.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
Jurisprudential Feasibility Study of Designing Inflation- Protected Musharakah and Ijarah Sukuk in Iran Capital Market
89
122
FA
Mohammad
Tohidi
0000-0002-1289-1256
PhD student of Islamic Theology and Financial Management at Imam Sadiq University
tohidi83@gmail.com
Amir Hossein
Etesami
0000-0001-7866-8519
researcher in the field of Islamic finance at Securities and Exchange Organization
etesami66@gmail.com
The problem of devaluation in case of inflation has caused the efficiency of fixed income bonds decreases. The high inflation rate in Iran during recent years and inflexibility of bonds payable have resulted in undesirable consequences. The effects of inflexibility of interest rate in bonds include the lack of attractiveness of securities for investment, increased costs for the issuance, the burden of financing projects on the banking system and ignorance of the real rights of investors. Inflation linked bonds are securities that link the return on securities with an inflation index such as consumer price index and this way not only keeps power purchase of investors in high inflation conditions, but also decreases financing costs for issuer in conditions with decreased inflation expectations. These bonds could be a very useful tool for countries with significant inflation rates. The main question in this study is “is it possible to design inflation linked Islamic securities according to Islamic jurisprudence?” this research surveys two types of Sukuks include inflation linked Ijarah and Musharakah Sukuk. Based on results of this research it’s possible to design inflation linked Ijarah and Musharakah Sukuk in the view of Islamic jurisprudence. This study for floating Ijarah Sukuk uses sequential Ijarah contract that provided under the first Ijarah contract and floating rate of return is determined based on specific formula for future periods. Also in Musharakah Sukuk we can float on account proceeds based on specific formula or by using embedded options in Sukuk structure.
Inflation Linked Ijarah Sukuk,Inflation Linked Musharakah Sukuk,Embedded Option,Gharar,Dharar,Imamiah jurisprudence
https://iee.rihu.ac.ir/article_1298.html
https://iee.rihu.ac.ir/article_1298_4e1b37de533492f7a95e54f96ad714b3.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
Market Failure in Achieving the Conservation in Production of Oil in the Context of Contract Theory
123
150
FA
Mahdi
Nourahmadi
PhD student, Management of Oil and Gas International Contracts, Imam Sadiq University
nourahmadi@gmail.com
Hossein Ali
Sa'adi
Associate professor, Imam Sadiq University
saadi@isu.ac.ir
Vali Ahmad
Sajjadian
Associate professor, Islamic Azad University, Khark branch
s1382@yahoo.com
Masoud
Amani
Assistant professor, Imam Sadiq University
amani.masoud@gmail.com
According to Iranian Constitution, Oil and Gas are classified under Anfal. Conservation in production of oil is the most important criterion in exploitation of oil resources which affects all phases of exploration, appraisal, and development and production of oil from a reservoir. Despite the passage of more than hundred years of oil production in Iran, there have been no rules, regulation or any regulation for conservation in production of oil other than its definition in the amendment to the Oil Law of the year 1366. Studies show that variety of reasons including the complexity of technical and economic calculations, heavy investment volume, achievement of results in the long term, serious uncertainties with regard to the results of EOR programs, and asymmetry and conflict of interest between contracting parties cause the factors which lead to market failure, such as huge economies of scale, asymmetric information and its resulting problems, i.e. moral hazards and adverse selection, and externalities, clearly affect the conservation programs to exploit the oil reserves and several evidences resulting from contracts to develop Iranian oil and gas fields confirm these facts. Therefore, it is necessary to deal with such issues and decision making should occur in at sovereignty position of the government other than the company level.
Anfal,Market Failure,Conservation in Production of Oil,Contract Theory,Asymmetric information,Moral Hazards,Adverse Selection
https://iee.rihu.ac.ir/article_1299.html
https://iee.rihu.ac.ir/article_1299_9501344a81d94dbcf518c0e7125a6b38.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
The Effect of FDI on Income Distribution in Developing Countries; With an Emphasis on Iran
151
180
FA
Khaled
Ahmadzadeh
Assistant professor, Faculty of Economics, University of Kurdistan
kh.ahmadzadeh@uok.ac.ir
Ali
Fe'eqh, Majidi
Assistant professor, Faculty of Economics, University of Kurdistan
a.f.majidi@gmail.com
Zahra
Zarouni
M.A. of Economics, University of Kurdistan
zahrazarouni@gmail.com
The gap between national savings and investment demands prompts necessity for foreign direct investment among many developing countries to achieve macro-economic goals. In these countries, along with capital shortages there also exist a massive misdistribution of income. This paper studies the impact of foreign direct investment on income distribution in developing countries using a dynamic panel method for the period 1990-2014. Moreover, for Iran’s economy, the long-run relationships between variables are tested using ARDL method for the period 1981-2015, the results of which give even more support to the accuracy of findings in the panel data method. The findings of this study indicate a significant and positive impact of FDI on Gini coefficient. In addition, Kuznets hypothesis in nonlinear model in the upper middle income countries was confirmed but in the lower middle income countries has not been achieved. Variables such as government expenditure and the GDP growth in the upper middle income countries has significant positive effect on Gini coefficient and also tax, employment and trade openness have improved income distribution. Policy recommendations have thereof prescribed.
FDI,Income Distribution,Developing Countries,panel data,Cini Coefficient
https://iee.rihu.ac.ir/article_1300.html
https://iee.rihu.ac.ir/article_1300_166a8e0c4fc3520f1a5916a07063b44a.pdf
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
Journal of Iran's Economic Essays (JIEE)
1735-3300
2588-5812
13
26
2017
09
23
Exploring the Role of Education on the Labor Productivity in Iran
181
202
FA
Firouz
Fallahi
Associate professor, Faculty of Economics, Management and Business, University of Tabriz
ffallahi@tabrizu.ac.ir
Mohsen
Pourebad Elhankovich
Associate professor, Faculty of Economics, Management and Business
mohsen_p51@hotmail.com
Alireza
Jalili Marand
0000-0003-2644-9765
PhD student of economics, College of Economics, Business and Management, University of Tabriz
alireza.jalili.m@gmail.com
There is no consensus on the way that education can affect the labor productivity. Three different hypotheses have been proposed to explain the role of education on the productivity. The first one is called the human capital theory, which indicates that education increases the labor productivity. The second hypothesis is so called the strong screening hypothesis, which considers education just as an instrument to signal the hidden productivity of the labor to employers. And finally, the last one is called the weak version of the screening hypothesis. This hypothesis states that the main role of education is to signal, however, it can contribute to increase the labor productivity as well. To shed more light on the validity of the above mentioned hypotheses, this paper examines the role of education on the labor productivity in Iran. To that end, the data from the Households Income and Expenditure Survey (HIES) for the year 2009 of Iran has been used. The results show that some education-levels act as a signal only and they do not affect the productivity.
Asymmetric information,Signaling,Screening,Human Capital Theory,Weak Screening Hypothesis
https://iee.rihu.ac.ir/article_1301.html
https://iee.rihu.ac.ir/article_1301_61fa4a698bdeb3dc2709ab569027bc1b.pdf