Comparison of Iran and China from the Perspective of Knowledge-Based Economy in Order to Deal with Economic Sanctions.

 

Volume 1, Issue 1, Number 7, Pages 18-77, Published Online October 20, 2013

Full-Text PDF

Author(s):
Abolfazl Shahabadi. Zohre Bahari

ABSTRACT:
Economic sanctions against countries are among the factors that will disrupt process of economic growth. It seems poor countries will face more sanctions. These countries should fight with sanctions by knowledge-Based management of financial, natural and human resources, from channels of promotion of productive investments, national products, productivity, competitiveness and turn sanctions into opportunities in order to strengthen the foundation of economic prosperity and realize resistive economic. The knowledge-based economy plays an important role in order to realize resistive economic. Therefore, this study compares macroeconomic variables and status of knowledge-based economy in Iran and China, under sanctions during the period 1980-2009. The results indicate during the period 1980-2009, China increased the share of TFP in economic growth and competitive strength through development of new agents markets and made practically ineffective sanctions. So, sanction not only didn’t weaken economic and productive variables in China, but also provided an opportunity for strengthen economic foundations. Iran unlike China hasn’t suitable situation about innovation components and new agents markets. Therefore, Iran must expanded components of knowledge-based economy and markets of new production factors in order to neutralize effect of sanctions, turn non-renewable wealth into reproducible wealth and increasing share of TFP in economic growth.

KEYWORDS:
Economic Sanctions, Knowledge-Based Economy, TFP, Iran, China.

References:
Achim, I. M. & Popescu, T. (2009). “The systematic approach to national innovation systems in a knowledge-based economy”, Annals Universities Apuleius Series Oeconomica, Vol. 11, No. 2, pp. 946-952.
Amini, A. & Hejazi Azad, Z. (2008). “Analysis of the role of human capital and R&D on improving of total factor productivity in the economy of Iran”, Iranian Journal of Economic Research, Vol. 10, No. 35, pp. 1- 30. (In Persian)

Baseri, B., Asghari, N. & Kia, M. (2011). “Comparative analysis of the role of Knowledge-Based Economy elements on economic growth”, Iranian Journal of Economic Research, Vol. 16, No. 47, pp. 1- 29. (In Persian)

Chen, D. H. C. & Dahlman, C. (2004). “Knowledge and development: A cross-section approach”, World Bank Policy Research, Working Paper, No. 3366.

Coe, D. T. & Moghadam, R. (1993). “Capital and trade as engines of growth in France: An application of Johansen’s cointegration methodology”, IMF Staff Papers, No.40, pp. 542-666.

Coe, D. T. & Helpman, E. (1995). “International R&D spillovers”, European Economic Review, Vol. 39, No. 5, pp. 859-887.

Coe, D. T., Helpman, E. & Hoffmaister, A. W. (2008). “International R&D spillovers and institution”, IMF Working Paper, WP/08/104.

Coe, D. T., Helpman, E. & Hoffmaister, A. W. (2009). “International R&D spillovers and institutions”, European Economic Review, No. 53, pp. 723-741.

Dolores, A. H. (2007). “The impact of R&D spillovers on UK manufacturing TFP”, Research Policy, No. 3, pp. 964- 979.

Edquist, C. (1997). “Systems of innovation: Technologies, institutions and organizations”, London: Pinter/Cassell.

Freeman, C. (1987). “Technology policy and economic performance”, Lessons from Japan”, London, Pinter Publishers, Vol. 17, No. 5, pp. 309-310.

Guellec, D., Bruno, V. & De La Potterie, P. (2001). “R&D and productivity growth, a panel analysis of 16 OECD countries”, STI Working Paper 2001/3. Paris, Vol. 66. No. 3, pp. 353-378.

Griliches, Z. (1988). “Productivity puzzles and R&D another non-explanation”, Journal of Economic Perspectives, No.2, pp. 9-21.

Grossman, G. M. & Helpman, E. (1990). “Trade, innovation and growth”, American Economic Review, No. 84, pp. 1-13.

Grossman, G. M. & Helpman, E. (1991). “Trade, knowledge spillovers and growth”, European Economic Review, No. 35, pp. 517-526.

Grossman, G. M. & Helpman, E. (1991a). “Quality ladders in the theory of growth”, Review of Economic Studies, Vol. 193, No. 85, pp. 43-61.

Grossman, G. M. & Helpman, E. (1991b). “Innovation and growth in the global economy”, Cambridge, MA: The MIT Press.

Hajihoseini, H. (2006). “An analysis of Iran national innovation system”, Institute of Studies and Research of Technology, Retrieved from http://www.bpj.ir. (In Persian)

Jones, C. I. (1995). “R&D-based models of economic growth”; Journal of Political Economy, No. 103, pp. 759-84.

Komijany, A. & Memarnezhad, A. (2004). “The importance of quality of human capital and R&D in Iran economy growth”, Iranian Journal of Trade Studies, No. 31, pp. 1- 31. (In Persian)

Lederman, D. (2007). “Product innovation by incumbent firms in developing economies: the roles of research and development expenditures, trade policy and the investment climate”, World Bank Policy Research, Working Paper, No. 4319.

Lucas. J. R. (1988). “On the mechanics of economic development”, Journal of Monetary Economics, Vol. 22, No. 1, pp. 3-42.

Lundvall, B. A. (1992). “National systems of innovation: Toward a theory of innovation and interactive Learning”, (London: Pinter).

Nelson, R. (1993). “National innovation systems”, (New York: Oxford University Press).

Park, W. G. (2008). “International patent protection: 1960-2005”, Research Policy, No. 37, pp. 761-766.

Porter, M. E. & Stern, S. (2000). “Measuring the ‘ideas’ production function: Evidence from international Patent output,” NBER Working Paper, No. 7891, (Cambridge: Massachusetts: National Bureau of Economic Research).

Romer, P. M. (1986). “Increasing returns and long-run growth”, Journal of Political Economy, No. 94, pp. 1002-37.

Romer, P.M. (1990). “Endogenous technological change”, Journal of Political Economy, No. 98, pp. 71-102.

Savvides, A. & Zachariadis, M. (2003). “International technology diffusion and TFP growth”, Oklahoma: Oklahoma State University, Department of Economics,.

Scherer, F. M. (1982). “Inter-industry technology flows and productivity growth”, The Review of Economics and Statistics, Vol. 64, pp. 627-34.

Sebastian, F. P. (2007). “Public support to innovation and imitation in a non-scale growth model”, Journal of Economic Dynamics & Control, Vol. 31, No. 12, pp. 3791–3821.

Seyfodin, A. A. & Salimi, M. H. (2001). “The components of national innovation system or elements for the effective cooperation between government, university and industry”, The Sixth Congress Cooperation between Government, University and Industry for the national development, Retrieved from www.tco.ir/research. (In Persian)

Schumpeter, J. A. (1934). “The theory of economic development: An inquiry in to profits, capital credit, Interest and the business cycle. ” Cambridge: Harvard Business Press.

Shahabadi, A. & Sadeghi, H. (2012). “Investigation the role of innovation and competitiveness on D8’s export performance”, Iranian Journal of Rahbord- e-Yas, N. 31, pp. 136- 160. (In Persian)

Shahabadi, A. & Heydari, A. (2011). “Determinant factors of R&D in selected developing and developed countries: panel data approach”, Iranian Journal of Science and Technology Policy, Vol. 4, No. 1, pp. 95- 108. (In Persian)

Shahabadi, A. (2010). “The role of total factor productivity growth in non-oil sector growth of Iran economy”, Journal of Knowledge and Development, Vol. 18, No. 31, pp. 1-29. (In Persian)

Shahabadi, A. (2007). “The effect of foreign direct investment, international trade and human capital on total factor productivity of the Iran economy”, Journal of Economic Essays, Vol. 4, No. 7, pp. 99- 134. (In Persian)

Shahabadi, A. (2005). “The resources of Iran economy growth”, Journal of Economic Literature, Vol. 1, No. 1, pp. 19- 42. (In Persian)

Shahabadi, A. (2001), “Investigation the determinant factors of Iran economic growth”, Journal of Nameh- Ye- Mofid, No. 27, pp. 169- 199. (In Persian)

Solow, R. M. (1957). “Technical change and the aggregate production function”, The Review of Economics and Statistical, Vol. 39, No. 3, pp. 312-3200.

Trewin, D. (2002). “Measuring a knowledge-based economy and society: An Australian framework”, Discussion Paper, Australian Bureau of Statistics, Retrieved from http://www.ausstats.abs.gov.au.

EFW: Economic Freedom of the World. Retrieved from http://www.fraserinstitute.org/programs-initiatives/economic-freedom.aspx

IFS-IMF: International Financial Statistics – International Monetary Fund. Retrieved from http://elibrarydata.imf.org/FindDataReports.aspx?d=33061&e=169393

PWT: Penn World Table. Retrieved from https://pwt.sas.upenn.edu/

WDI-WB: World Development Indicators-World Bank. Retrieved from http://data.worldbank.org/data-catalog/world-development-indicators.

 

No comments

Be the first one to leave a comment.

Post a Comment


 


INTERNATIONAL JOURNAL

Events 2016

1

Events 2016

1