چکیده:
ranian economy has had a long history of development efforts. It’s now more than sixty years passed from the official attempts in development of the country through the so called economic, social, and cultural development plans. Iran has of course gained the fruits of modern economic era to some extent. However as a fact of observation, Iranian economy has not experienced a sustained economic growth during these many years of the attempts for economic development. The important question is why? This article introduces the framework of a model that intends to clarify the fundamental impediments of Iranian sustainable economic growth and tries to provide an answer, as reasonable as the constraints of the model permits. The model, maintaining the message of H-R-V model, extends it to the Iranian economic growth in a broader perspective. While we recognize the pathology of price distortions and activist policies, we observe the Iranian main development problems on some important binding constraints. In fact in this expanded perspective, instead of governments, the lives of whom are short, “governance”- be it in a market or a non market economy- is at the center of the attention.
خلاصه ماشینی:
Keywords: Economic Growth, Private Investment and Entrepreneurship, HRV Model, Binding Constraint 1- Introduction Iran is not a developed country and is not experiencing a sustainable growth and development path.
(View the image of this page) Year Figure 1: Real per Capita GDP Growth Source: World Bank, World Development Indicators This is while Iran since long, now more than sixty years, have had serious official attempts for the development of the country.
Instead, this research intends to find the fundamental impediments of Iranian economic growth or the most binding constraints to development, following the terminology and methodology set by HRV model.
Source: World Bank, World Development Indicators (View the image of this page) 38/ The Fundamental Impediments of Economic Growth in Iran … 3- Theoretical Framework of Growth Diagnostics The initial point of the growth diagnostic model is that a sustained growth is the result of private investment and entrepreneurship.
Provided that the HRV model is basically designed for developing countries and by and large most of the LDCs face the problem of unavailability of data, a schematic diagram let the researcher to analyze groups of factors affecting each of the two impediments to growth, namely rate of return and the cost of capital.
60/ The Fundamental Impediments of Economic Growth in Iran … (View the image of this page) Source: The World Bank, development group, June, 2008 5th.