The Impact of Knowledge-based Economy on Iranian Endogenous Economy In line with the general policies of resistive economy

Shaghaghi Shahri, Vahid; Alizadeh, Shiva

The Impact of Knowledge-based Economy on Iranian Endogenous Economy In line with the general policies of resistive economy

Authors

¹ Assistant professor, Kharazmi University

² M.A. student of Islamic Economics, Kharazmi University

Abstract

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.
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.

Keywords