International Economics
Faranak Miraali; Saied Isazadeh; Seyed Ehsan Hosseinidoust
Abstract
Foreign direct investment (FDI) is considered as an inseparable features of an open and influential global economic system and a key factor for growth and development between countries. Due to having huge amount of oil and gas resources as well as relatively large markets, Iran has a great potential ...
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Foreign direct investment (FDI) is considered as an inseparable features of an open and influential global economic system and a key factor for growth and development between countries. Due to having huge amount of oil and gas resources as well as relatively large markets, Iran has a great potential for attracting FDI far more than its performance. However, various sanctions imposed on the country in recent years has led to a decrease in FDI by creating a hostile psychological environment and high risk for economic activities. In this paper, we are going to examine the widespread impacts of economic sanctions imposed by the US on the FDI of Iran between 1980 and 2020 through a model called the synthetic control (SCM). Through SCM we estimate the difference in FDI between the treated country (Iran) and the counterfactual (Synthetic Iran). The results show that the sanctions leads to almost 12 billion $ reduction in the FDI compared to the no-sanctions situation. Following the escalation of sanctions under the Trump administration and the withdrawal of the US from the JCPOA, the adverse effects of declining FDI peaked at 20 billion $ in 2020.The placebo tests also show that the there are statistical significance in findings (at the 10%
International Economics
Hassan Daliri
Abstract
This paper concentrates on the impact of foreign direct investment (FDI) on economic growth in different country income levels. This study is based on 79 countries into four income groups (31 High income, 18 Lower middle income, 21 Upper middle-income, and 9 Low-income countries) for the period 1990-2019. ...
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This paper concentrates on the impact of foreign direct investment (FDI) on economic growth in different country income levels. This study is based on 79 countries into four income groups (31 High income, 18 Lower middle income, 21 Upper middle-income, and 9 Low-income countries) for the period 1990-2019. Our estimations make use of panel quantile regression techniques. This article’s results show that the impact of FDI on economic growth appears to change with a country's growth level. The empirical results show that in countries with high income, medium-upper income levels, the influence of FDI on economic growth is always positive. Of course, there is a negative link between FDI and economic growth in the lower-income and the 30th percentile in medium-lower income. We obtained evidence that the growth effect of FDI is conditional upon the level of income and growth in host countries. The impact of FDI on economic growth depends on the countries income level. FDI is particularly suitable for economic growth in countries with higher GDP growth. In countries with medium-upper income levels of income, the influence of FDI on economic growth is greater than other income groups.
Hossein-Ali Fakher; Zahra Abedi
Abstract
The main objective of this paper is to investigate the effects of technology transfer through the imports of intermediate goods by developing countries developed countries with the emphasis on Iran economy. For this purpose, we used multi-sectoral and multi–regional computable general equilibrium ...
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The main objective of this paper is to investigate the effects of technology transfer through the imports of intermediate goods by developing countries developed countries with the emphasis on Iran economy. For this purpose, we used multi-sectoral and multi–regional computable general equilibrium GTAP model (multi-sectoral and multi-regional CGE model). The paper examined the effect of a ten percent productivity shock in high-tech industries of industrial countries on economic sectors of Iran. The result shows that technology transfer embodied in Iran’s imports of intermediate goods leads to increase in outputs and decrease in prices. Factors such as absorptive capacity, structural similarity and effectiveness contributed to the spillover effects of technological improvements in Iran.