1. Investigating the Impact of Technology Spillovers on the Investment of Iranian Private Sector: A Dynamic Computable General Equilibrium Model Approach.
- Author
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Baharloo, Ali Asghsr, Esfandabadi, Seyyed Abdolmajid Jalaee, and Roodi, Mohsen Zayandeh
- Subjects
CONSUMPTION (Economics) ,PRICE level changes ,FOREIGN investments ,COMPUTABLE general equilibrium models ,PRIVATE sector ,ECONOMIC sectors - Abstract
Considering the role of capital as one of the most important factors which can affect production, job creation, and productive activities, this study was an attempt to investigate factors which can influence investment and the way they do so. To this end, this study benefitted from a dynamic computable general equilibrium model approach to simulate the effects of technology spillovers on economic and welfare variables involved in the investment of Iranian private sector in the country's economy. Accordingly, the study focused on changes in the production index of different economic sectors of Iran and changes in the consumption and price levels in the form of four different scenarios, namely doubling foreign direct investment, improving productivity through technology spillovers by using a coefficient of 0.0062, increasing import of capital and intermediate goods by 20%, and simultaneous application of the aforementioned three scenarios by using the 2013 Social Accounting Matrix for Iran. the results revealed, application of the first scenario can lead to an increase in the level of private sector investment in all the 14 sectors of Iran's economy and cause production growth. Moreover, application of the third scenario can cause the investment level of private sector to decrease. Finally, consideration of the fourth scenario, as compared to the other three scenarios, can be accompanied by a more considerable increase in the levels of production, private sector investment, household consumption, export, import, and thus households' welfare. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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