Proceedings of the Conference on Human and Economic Resources

The ECO (Formerly Regional Cooperation for Development=RCD) was established in 1985 as a trilateral organization of Iran, Pakistan and Turkey to promote multi dimensional regional cooperation to create conditions for sustained socioeconomic growth in the Member States. Following the amendment in the Treaty of Izmir (as the legal framework for the RCD), ECO was fully launched in early 1991. In 1992, the Organization was expanded to include seven new members, namely: Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The date of the Organization’s expansion to its present position, 28th November, is being observed as the ECO Day. Over the past 13 years the member states have been collaborating to accelerate the pace of regional development through their common endeavors. Besides cultural and historical interdependence, they have been able to use the existing infrastructural and business links to strengthen their major economic decisions. ECO has started several projects in priority sectors of its cooperation including energy, trade, transportation, agriculture and drug control. In this study, we evaluate the performance of ECO with emphasis on Foreign Direct Investment (FDI) and propose the appropriate policies for its future. Despite of this reality that ECO members have great similarities, but they are politically disaggregated. We try to consider economic and political factors simultaneously. Based on formal data in 2004, ECO members had over than 380 million people (almost 6% of world population) that mean a potential market with EU market size. However, the per capita GDP in $US was$1548 that constituted about one-fourth of world average. Also, the unemployment rate in the region was relatively high (5.8%). This trend may be worsening because the average population growth rate (1.7%) is higher than world average. On the other hand, total FDI in the ECO countries was 9 billion dollars in 2004(only 1.4% of total FDI in the world). So, to appraisal the FDI trends in the ECO countries, we need to consider the main factors affecting FDI. Some of these factors are per capita GDP, exchange rate, openness ratio, inflation rate, external debt and ICRG risk factor. We will apply the econometric methods (Generalized Least Squares +fixed or random effects) with panel data over the 1992-2005 period. In this regard, the related tests including unit root test, Hausman test, Normality test… will be provided. It is expected that increases in per capita GDP, openness ratio and exchange rate(as devaluation form) will raise FDI, but inflation rate, accumulated external debt ,economic and political risks will decrease the FDI in the region. Based on our conclusions, ECO members can benefit from their different relative advantages including large market for own and foreigners, tourism, historical and cultural linkages, idle capacities(including young and unemployed people) and various natural resources(mineral and non-mineral resources); and reach to sustainable development if they manage their possibilities and potentials; and provide the context to attract FDI without considering some dilemmatic political or religious resistances and pressures.ECO, RCD, FDI, panel data, GLD, fized effects, random effects

The relationships between interest rates and inflation changes: An analysis of long-term interest rate dynamics in developing countries

Interest rates lie at the centre of monetary policy, not just as passive reflectors on money supply but rather as one of the main policy instruments. Interest rates have played a central role macroeconomic policy. In developing countries, interest rates have also enjoyed high popularity as policy instruments. For instance, high interest rate has been an essential component of many stabilization programs in countries with chronic inflation during the 1980s. This paper deals with theoretical and empirical aspects of the interactions between interest rates and inflation in developing countries. In the theoretical part reviewing literature revealed that many researchers argue that increasing inflation rate results in increasing interest rate. It is also argued that increasing product costs by increasing interest rate raises product’s prices and consequently inflation. This research examines the causal relationship between the interest rate and inflation rate in a panel of 40 selected Islamic countries using new causality approach and applying panel data methodology over the 2002 – 2005 periods. The results of this study show a unidirectional causality from interest rate to inflation rate in 40 Islamic countries. The findings have practical policy implications for decision makers in the area of macroeconomic planning particularly in Islamic countries. The results imply that banks must reduce interest rate to decrease the inflation

Oil depletion and quality of democracy in selected Middle-East countries

Oil-abundant countries, Iran, Iraq and the Gulf Cooperation Council (GCC) countries try to improve democratic institutions and to manage their chronically big governments, while experiencing decreased world oil prices. These countries pursue open door policies. Most of the foreign revenues of the region stem from oil and gas exports. Thus, how to manage the production and exports of fossil resources is of great importance. This study aims to analyse the effects of quality of democracy, government size, and the degree of openness in explaining depletion of reserves between 1985 and 2015. After testing for panel unit root and co-integration, a panel data model was estimated considering random effects. The results indicate that democratisation and political stability causes higher depletion of oil. In addition, government size affects depletion in a non-linear form, so that oil production is maximised, when government expenditure accounts for nearly 14% of GDP, on average. Furthermore, trade openness positively impacts on the oil depletion. In this case study, higher oil depletion follows strengthening democratic foundations, resizing the public sector, expanding politico-economic ties with trade partners, and applying the modern technology in the upstream oil industries

The nexus between size and efficacy of government: evidence from OPEC

Abstract. From classic to modern economic theories, the scope and size of government in economy have been always main topics for economists. The governments have played different roles in a historical context. Provision of public goods is a generally accepted task for all governments. The supply of public goods requires efficient allocation and management of scarce resources. Government efficacy stems from good governance and proper planning and policy-making. This paper aims to bridge from government size to government efficacy the Organization of the Petroleum Exporting Countries (OPEC). To this end, a panel data in the model is estimated during 2002-2015 by using some control variables. Findings indicate a negative relationship between government size and efficacy. In addition, oil rents affect government efficacy negatively. The trade openness result in efficient government. Finally, economic growth has positive effect on result in government effectiveness. According to findings, minimization of government size, injection of oil revenues into Sovereign National Funds (SNFs), adoption of open door policies, and targeting sustainable economic growth give rise to an efficient government.Keywords. Government size, Government effectiveness, Trade openness, Oil rents, OPEC.JEL. F41, F53, H11, P48

Determinants of Life Expectancy at Birth in Iran: A modified Grossman Health Production Function

Health as a prerequisite to perform other activities is considered as bothconsumption and capital commodity. Views on health production may differ.Sometimes, health is assumed as natural endowment, at times, it is generated bythe personal efforts, and sometimes physicians and other health providersprovide it. This paper aims to identify the factors affecting the production ofhealth. To analyze thedeterminants of health production, we focus on life expectancy at birth in Iranover the period 1980-2012, as a dependent variable; and take per capita income,immunization rate and share of expenditure on education( as percent of GDP) asexplanatory variables. Then, weestimate the determinants of life expectancy using Johansen-Juseliuscointegration method for the long-run and error correction model for the short-runin the Eviews.8 software environment. In the long-run, the elasticity of life expectancy with respect to per capitaincome is about 0.12. In addition, the elasticities of life expectancy withregard to the rate of vaccination against illnesses and education levelare 0.35 and 0.13, respectively. Accordingto error correction model, the coefficient of error correction term (ECT) isestimated at -0.022, which shows that the 2.2% of disequilibrium in lifeexpectancy is adjusted in each period and is approached to its long-runequilibrium. the healthier and longer life require policy-makers toadopt more efficient policies in order to raise purchasing power, to enhanceoverall education level and to invest on immunization people against infectiousand communicable diseases

Analytical Workspace, Kinematics, and Foot Force Based Stability of Hexapod Walking Robots

Many environments are inaccessible or hazardous for humans. Remaining debris after earthquake and fire, ship hulls, bridge installations, and oil rigs are some examples. For these environments, major effort is being placed into replacing humans with robots for manipulation purposes such as search and rescue, inspection, repair, and maintenance. Mobility, manipulability, and stability are the basic needs for a robot to traverse, maneuver, and manipulate in such irregular and highly obstructed terrain. Hexapod walking robots are as a salient solution because of their extra degrees of mobility, compared to mobile wheeled robots. However, it is essential for any multi-legged walking robot to maintain its stability over the terrain or under external stimuli. For manipulation purposes, the robot must also have a sufficient workspace to satisfy the required manipulability. Therefore, analysis of both workspace and stability becomes very important. An accurate and concise inverse kinematic solution for multi-legged robots is developed and validated. The closed-form solution of lateral and spatial reachable workspace of axially symmetric hexapod walking robots are derived and validated through simulation which aid in the design and optimization of the robot parameters and workspace. To control the stability of the robot, a novel stability margin based on the normal contact forces of the robot is developed and then modified to account for the geometrical and physical attributes of the robot. The margin and its modified version are validated by comparison with a widely known stability criterion through simulated and physical experiments. A control scheme is developed to integrate the workspace and stability of multi-legged walking robots resulting in a bio-inspired reactive control strategy which is validated experimentally

ВЗАИМОСВЯЗЬ МЕЖДУ ЭКОНОМИЧЕСКИМ РОСТОМ, ИСТОЩЕНИЕМ ПРИРОДНЫХ РЕСУРСОВ И ПРЯМЫМИ ИНОСТРАННЫМИ ИНВЕСТИЦИЯМИ

Общие экономические показатели отражают экономический рост, на который влияет эффективное использование имеющихся ресурсов. Несмотря на то, что наиболее развитые страны не зависят от природных ресурсов, они демонстрируют более устойчивый рост, чем государства, богатые природными ресурсами. Страны бассейна Каспийского моря (Азербайджан, Иран, Казахстан, Россия, Туркменистан) и государства Центральной Азии (Кыргызская Республика, Таджикистан и Узбекистан) обладают значительными природными и экологическими ресурсами. Цель статьи — изучить взаимосвязь между экономическим ростом и истощением природных ресурсов в данном регионе в период с 1997 г. по 2019 г. Регион активно сотрудничает с другими экономическими блоками, благодаря обилию природных ресурсов идет торговля топливом и полезными ископаемыми. В связи с этим для учета степени открытости экономики в регрессионную модель включен показатель прямых иностранных инвестиций. Доля добавленной стоимости промышленности в валовом внутреннем продукте отражает влияние индустриализации на экономический рост. Наконец, количество зачислений в высшие учебные заведения используется для измерения влияния человеческого капитала на экономический рост. После уточнения эконометрической модели исследуемые переменные были протестированы на единичный корень. Из-за различий в порядке интегрирования для оценки панельных данных был использован полностью модифицированный метод наименьших квадратов. Согласно результатам анализа, истощение природных ресурсов, прямые иностранные инвестиции, доля добавленной стоимости промышленности и количество зачислений в вузы положительно влияют на экономический рост. Полученные выводы демонстрируют, что истощение природных ресурсов способствует экономическому росту в гораздо большей степени, чем прямые иностранные инвестиции и количество зачислений в вузы

The shifted Jacobi polynomial integral operational matrix for solving Riccati differential equation of fractional order

In this article, we have applied Jacobi polynomial to solve Riccati differential equation of fractional order. To do so, we have presented a general formula for the Jacobi operational matrix of fractional integral operator. Using the Tau method, the solution of this problem reduces to the solution of a system of algebraic equations. The numerical results for the examples presented in this paper demonstrate the efficiency of the present method

Demand for Natural Gas in Food and Beverage Industries of Iran

Food and beverage industries play crucial roles in satisfying food requirements. They rely on various kinds of energy to prepare and process foodstuff. The relative prices, technology level, sector growth and machinery status determine use of energy carriers in these enterprises. This paper examines the relationships among natural gas use, value-added and energy prices in food and beverage industries of Iran during 1978-2014. The decision unit is food manufacturing workplace. By considering microeconomic basics and applying co-integration approach, demand for natural gas is estimated. Due to the long-run nature of co-integrating relationships, the long-run own- and cross- price elasticities and income elasticity are estimated. Our findings show that natural gas is a luxury input in food industry, it is highly elastic to its price; and electricity and oil products are substitutes for natural gas. In a growing food sector, we would expect natural gas use to increase more rapidly. Keywords: Natural Gas, Food industry, Price elasticity JEL Classifications: D21, Q13, Q41