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The foreign direct investment is one of the economic variables that can positively affect the economic growth, but according to some researches this does not apply to some countries. These researches implicate that this lack of positive effect is due to domestic qualification of the home country. One of the essential qualifications for positive effectiveness of foreign direct investment on the economic growth is the existence of developed financial market. Therefore, in this research we intend to examine the role of financial market in the effectiveness of foreign direct investment on the economic growth. To do this we made use of the data from 57 countries in the period 1990-2005 and the econometric technique of panel data. The results show that in developed countries because of their financial market, the effect of foreign direct investment on economic growth is positive and significant whereas in developing countries this effect is not significant.

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This paper focuses on the role of uncertainty about the number of surviving children. The survey discusses the effects of declining mortality rates on fertility, education and economic growth. The construction of the paper is an OLG model in which individuals make choices about fertility decision over their lifetimes subject to uncertainty about the immortality. The simulation of model using actual changes reveals the fact that if the uncertainty about child survival enters to growth model, the population becomes an inverted u-shaped function of income per capita. As the mortality rate and thus uncertainty falls, the precautionary demand for children decreases. Furthermore, lower mortality encourages investment in children’s education .Also the calibrated version of the model using realistic estimates demonstrates that at low levels of income, population growth rises leading to Malthusian steady-state equilibrium, whereas at high levels of income population growth declines leading to a sustained growth steady-state equilibrium.

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The theoretical literature of economic growth (endogenous and exogenous growth model) and empirical evidence in developed and developing countries show that without financial reform, sustainable development is impossible. The positive effects of financial sector development on economic growth and developments in the international financial sector make a more important issue. Some economists believe that financial reforms through increasing the level of savings and investment can provide economic growth. Also, some economists believe that financial reform by international capital mobility and technology transfer can cause income convergence among countries. This study investigates the theoretical foundations of financial development, financial system and its functions, and also the analysis of the effect of financial reform on economic growth and creating income convergence among selected Islamic countries during 2008-1979. Estimation results show that financial reform through liquidity has direct and significant impact on economic growth. The crossover effect of economic growth and liquidity has direct and statistically significant effect on income convergence.

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Intermediate goods are another produced factor of production, like capital. Considering intermediate goods in production function makes multiplier be even larger than the one. In this paper, based on the approach of Jones (2007,2010) We computed multipliers by intermediate goods. For this purpose, we used Input – Output table of Statistical Center of Iran (base year: 2001). Finding show that 10.6% of total products used in inter- sector transaction and 4.28% used in intera-sector transaction. Therefore, the domestic multiplier is 1.383 and import multiplier is 2.117 and total multiplier is 2.929.These results indicate increase in the multiplier. The industrial sector and mining sector produce the most and the lowest share of domestic intermediate goods, respectively. The highest and lowest shares of imported intermediate goods between economic sectors are in industrial sector and water sector, respectively

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Convergence hypothesis includes two types of beta and sigma. In this study, we examine convergence hypothesis among Iran’s provinces and discuss the effect of internal net migration in that context since 2000 to 2007. The results indicate that poor provinces grow faster than rich ones and there is beta convergence in Iran. About sigma convergence, we found that the dispersion of GDP per capita increase among these provinces over the years. Immigration is one of the factors that could influence economic growth of provinces and convergence among them. The results show a direct relationship between net immigration and per capita GDP growth of provinces. When the variable of net migration is included into convergence equation, it increases beta coefficient. So, net migration has a negative effect on convergence. Immigration flows more from the poor provinces to rich provinces and increases the gap among them.

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One of the important targets of the economic planning is economic growth via enhancement of the labor productivity. In this regard, education expenditures play a crucial role. This study aims at investigating the effect of education expenditures on the level of human capital and economic growth through a computable general equilibrium approach. The data on economic variables and social accounting matrix belongs to the year 2001. Three scenarios on education expenditures are defined and their effect on human capital and economic growth are estimated. The results show that education expenditures have positive effects on economic growth and human capital. A 50% increase in education expenditures in the first period causes 3.81 and 5.8 percent increase in human capital and economic growth respectively. In the second period, the same increase in education expenditures affects human capital and economic growth positively by 5.4 and 7.3 percent respectively. Although separating the economic growth into human and physical factors in the first period shows that there is no relationship between human capital and economic growth, but in second period this separation causes a relationship between the two factors.

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  This research aims to analyze the effects of industrial agglomeration on regional economic growth in the Iranian provinces. For this aim, this study is divided into theoretical and applied sectors.

  In the theoretical point of view, the research has proposed a simple theoretical framework to study the impacts of industrial agglomeration on regional economic growth. In applied sector, we have specified econometrics models and estimated them by using a system of simultaneous equations using Panel Data for 28 provinces of Iran over the period 2000-2006.

  Results show that regional economic growth is positively affected by industrial agglomeration and regional knowledge level and negatively affected by human capital mobility cost and per capita income. Results also show that regional economic growth, transportation cost, household expenditure and human capital mobility cost have positive effects on industrial agglomeration in the Iranian provinces.

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Price shocks lead to oil price volatility in world oil markets. In response to this volatility, economic growth may take different regime and behavior patterns in different situation. Investigating this multi behavior patterns can be useful for policymakers to reduce the effect of oil price volatility. In this study, an EGARCH model has developed using the seasonal data of OPEC oil basket nominal prices during 1367:Q1-1389:Q4. Markov switching models is also applied to investigate the multi behavior patterns of economic growth in response to oil price volatility in Iran. The results show that positive oil price shocks sharply lead to formation of oil price volatility, but, the negative price shocks will slightly reduce oil price volatility. Iranian economic growth is affected by this volatility under three different behavior regimes. If the economy switch to one of the regimes (low, medium, high economic growth), the probability of transition between these regimes and their duration is different. So, oil price volatility as a reason for low economic growth in Iran may cause the economy switch to its lower situation.

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Fiscal decentralization that is considered a transfer of responsibilities that associated with accountability to sub – national governments, increases efficiency and providing better access to public goods in the Economy. According to the five-year development plans of Iran creating and allocating structure for provincial budgeting, fiscal decentralization generally is moving in the costs of its Provinces in order to give more responsibility to the provincial development projects. The aim of this study is an investigation of effect for partial fiscal decentralization on regional economic growth of Iran. Fiscal decentralization index is proportion of provincial's capital assets to government's capital assets, So this researches the effects of decentralization on economic growth in the framework of Solow's growth model. That the results based on data from 30 provinces between 2000 and 2007 on the panel data estimation, shows partial fiscal decentralization which has a non-linear relationship with the growth (convex shape) and partial fiscal decentralization Indicts the Optimal degree in growth of regional economy in Iran.