[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Current Issue :: Archive :: Search :: Submit :: Contact ::
:: Volume 14, Number 53 (Summer 1396 2017) ::
QEER 2017, 14(53): 1-33 Back to browse issues page
The Effect of Non-Renewable Energy, on Institutional Quality and Production in the Iranian Economy: An Application of the State-Space Model
mahboubeh jafari 1, Karim Eslamloueyan
1- , mjafari@pgu.ac.ir
Abstract:   (91 Views)
The main goal of this paper is to study the effect of non-renewable energy on output and institutional quality in Iran as an energy-rich country for the period 1984-2013. To this end, we introduce institutional quality into an endogenous growth model. The model allows us to examine how the resource abundance can influence output both directly and indirectly.In our model, the quality of institution is assumed to affect output through its impact on research and development (R&D) activities and the allocation of labor force between productive and non-productive sectors. The estimation results of our state-space model indicate that one percent improvement in institutional quality increases output and R&D expenditure by 0.22 and 0.23 percent, respectively. Moreover, we find that one percent increase in non-renewable energy raises output directly by 0.49 percent. However, we show that the use of non-renewable energy has a downward pressure on the quality of institutions in Iran and hence have negative impact on output indirectly.More specifically, one percent increase in using non-renewable energy decreases the index of institutional quality by 0.59 percent in Iran. This negative impact offsets the positive effect of using more non-renewable energy on GDP and hence lowers the growth rate. This finding highlights the importance of the institutional quality for enhancing the effect of non-renewable energy on output growth in Iran..
JEL Classification: O13, H54, Q32.
Keywords: Institutional Quality, Non-Renewable Energy, Economic Growth, State-Space Model, Iran.
 
Keywords: Institutional Quality, Non-Renewable Energies, Economic Growth, State-Space Model, Iran.
Full-Text [PDF 1025 kb]   (102 Downloads)    
Type of Study: paper | Subject: Energy Economic
Received: 2016/05/6 | Accepted: 2017/06/29 | Published: 2017/09/20
Send email to the article author

Add your comments about this article
Your username or email:

Write the security code in the box >



XML   Persian Abstract   Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

jafari M, Eslamloueyan K. The Effect of Non-Renewable Energy, on Institutional Quality and Production in the Iranian Economy: An Application of the State-Space Model. QEER. 2017; 14 (53) :1-33
URL: http://iiesj.ir/article-1-678-en.html
Volume 14, Number 53 (Summer 1396 2017) Back to browse issues page
فصلنامه مطالعات اقتصاد انرژی Quarterly Energy Economics Review
Persian site map - English site map - Created in 0.049 seconds with 788 queries by yektaweb 3475