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Democracy: An opportunity or a threat to Iran's economic structure

Author

Listed:
  • Madjid Hatefi MADJUMERD

    (Department of Economics, University of Sistan and Baluchestan. Iran.)

  • Omolbanin JALALI

    (Department of Economics, Yazd University. Iran.)

  • Mohamad Esmaeel ASHRAFI

    (Shahid Bahonar University of Kerman. Iran.)

Abstract

The main aim of this study is to evaluate the role of democracy in Iran’s economic structure during 1983 to 2012. Iran’s economic structure is divided into two oil and non-oil parts and is investigated in the governments of Seyed Ali Khamenei, Ali Akbar Hashemi Rafsanjani, Seyed Mohammad Khatami, and Mahmoud Ahmadinejad. In this context, the government of Mr. Khamenei is selected as the base government and other governments are compared to that. Results of the oil part showed that the government of Mr. Khatami had a better performance in terms of capital, labor and political risk. With regard to oil exports, the two other governments have had the same performance as the base government. Results of the non-oil part showed that the effect of exports on economic growth in the governments of Mr. Hashemi Rafsanjani and Ahmadinejad is like the base government; while it is significantly different from the base government in the government of Mr. Khatami. Labor has had a negative effect in Mr. Hashemi Rafsanjani and Ahmadinejad’s governments, while its impact on economic growth is positive in Khatami's government. Political risks had the greatest effect on economic growth in the government of Mr. Ahmadinejad (relative to Mr. Hashemi Rafsanjani and Mr. Khatami’s governments).

Suggested Citation

  • Madjid Hatefi MADJUMERD & Omolbanin JALALI & Mohamad Esmaeel ASHRAFI, 2017. "Democracy: An opportunity or a threat to Iran's economic structure," Turkish Economic Review, KSP Journals, vol. 4(3), pages 326-333, September.
    • Handle: RePEc:ksp:journ2:v:4:y:2017:i:3:p:326-333
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    References listed on IDEAS

    as
    1. Ari Aisen & Francisco Veiga, 2008. "Political instability and inflation volatility," Public Choice, Springer, vol. 135(3), pages 207-223, June.
    2. Daron Acemoglu & Suresh Naidu & Pascual Restrepo & James A. Robinson, 2019. "Democracy Does Cause Growth," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 47-100.
    3. Aisen, Ari & Veiga, Francisco Jose, 2006. "Does Political Instability Lead to Higher Inflation? A Panel Data Analysis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(5), pages 1379-1389, August.
    4. Daron Acemoglu & Michael Golosov & Aleh Tsyvinski, 2008. "Political Economy of Mechanisms," Econometrica, Econometric Society, vol. 76(3), pages 619-641, May.
    5. Zhenhui Xu & Haizheng Li, 2008. "Political freedom, economic freedom, and income convergence: Do stages of economic development matter?," Public Choice, Springer, vol. 135(3), pages 183-205, June.
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    More about this item

    Keywords

    Cabinet changes; Political risks; Oil economy; Non-oil economy.;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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