Measurement of the effects of composite indices on Iran's economic growth with an Islamic approach in 1996-2019

Document Type : Research Paper

Authors

1 Department of Jurisprudence and Principles of Islamic Law, Mashhad Branch, Islamic Azad University, Mashhad, Iran

2 Department of Accounting and Economics, Mashhad Branch, Islamic Azad University, Mashhad, Iran

Abstract

Economic growth and development are macroeconomic objectives for increasing welfare and economic-social justice. Several factors affect economic growth but their effects can be better examined using composite indices which are suitable indicators in the economic literature for performance evaluation and knowledge about the gap between the current status and goals of economic programs and policies. Therefore, the present manuscript aimed to provide and measure the composite indices, macroeconomic and social variables, and their effects on economic growth with the economic jurisprudence approach. To this end, the vector error correction model (VECM) was used for the period 1996-2019. The results of the impulse response function (IRF) test indicated that the economic growth of Iran had a very slight negative response to the impulse of the composite indices, including economic security, production and productivity, and property rights in the long term. Therefore, the composite indices, including economic security, productivity, and property rights could not significantly affect economic growth in Iran in the long term while the economic growth showed a positive and stable reaction to the impulse of the economic-social justice index in the long term. Furthermore, the increase in the cooperation, participation and presence of the active population with the ability to work in the field of production and economic activities increased economic growth.

Keywords

[1] A.S.A.T. Al’Amili and Z.A. Al-Juba’i, Masalik al-Afham ela tanqih Shara’i al Islam, Vol. 4, Al-Maarif al-Islamia, Qom, 1992.
[2] M.B.A. Al-Hurr al-Amili, Vasail al-Shi’a ela tahsil masail al-shari’a, Vol. 13,17,21, al-Maktaba Al-Islamia, Tehran, 1982.
[3] H.A. Ali-Akbarian, The rule of justice in Imamiyyah jurisprudence, Islamic Propagation Center of Qom Hawza, 2007.
[4] A.H.Y. Allamah Al-Hilli, Mokhtalif al-Shia, Vol. 7, Maktab al-elam al-Islami, Qom, 1995.
[5] A.B.Y. Allamah Al-Hilli, Tazkira al-foqaha, Vol. 16, Dar al-Fiqh, Qom, 1989.
[6] A.I.H. Al-Muhaqqiq al-Karaki (al-Muhaqqiq ath-Thani), Jami al-maqasid fi sharh al-qavaid, Vol. 8, Al-al-Bayt Institute, Qom, 1993.
[7] M.B. Al-Sadr, Our economy, Vol. 1, 2, Translated by Seyyed Mahdi Borhani, Qom: Shahid Sadr SpecializedScientific Research Center, 2013.
[8] M. b. M. A. Ansari Dezfouli, The book of Al-Makasib, Vol. 2, 5, World Congress for Commemoration of Sheikh Azam Ansari, Qom, 1994.
[9] M. Asghari, Justice as a juridical and legal rule, Law Quart, 39 (2009), no. 1, 1–21.
[10] A.M.M. Bah. r al-’Ulum, Balgh al-Faqih, 4th edition, Maktaba al-Sadiq, Tehran, 1981.
[11] Y. Bahrani, Al-Hadaiq al-nazerah fi ahkam al-etrah al-tahirah, Vol. 21, Al-Nashar al-Islami Institute , Qom, 1984.
[12] A. Bahrani and M. Hossein Bin (Bita), Al-anwar al-lavama fi sharhe mafatih al-sharai, Albahuth al-Alamiya assembly, Qom, 4.
[13] S. Bakhtiari, An analysis of income distribution using the parametric method, Ministry of Economic Affairs and Finance, Tehran: Deputy of Economic Affairs, 2009.
[14] R. Bakhshi-Dastjerdi, A study on the effect of inter-temporal justice on economic growth with an emphasis on the role of time preference, case study: Iran’s economy, Econ. Res. Quart. 2011 (2011), no. 1, 19–41.
[15] R.J. Barro, Inequality and growth in a panel of countries, J. Econ. Growth 5 (2000), 5–32.
[16] Central Bank of the Islamic Republic of Iran, Report of Iran’s economy productivity in 1988-2007, Tehran: Economic Deputy, Department of Economic Accounts, 2010.
[17] A. Eftekhari, Security, Imam Sadiq University, 2012.
[18] A. Eftekhari, M. Naderi and H. Meysami, Rereading the security requirements of the 2025 Perspective Document of the Islamic Republic of Iran, a multi-dimensional approach, Rahbord Quart. 58 (2011), 53–80.
[19] A.A. Esmaeilnia and Sh. Vasfi Asfestani, The effect of security on economic growth in Iran and some selected countries, Econ. Res. Quart. 61 (2016), 127–154.
[20] H. Eyvazlou, Indices of economic justice, Expediency Discernment Council of the System, Tehran, 2007.
[21] Farabi, Thoughts of the people of Medina, Translated by Seyyed Jafar Sajjadi, Tahori Library, 1982.
[22] M. Fazel Movahedi Lankarani, Al-ghavaed al-Fiqh, Qom: Aemeh Athar Jurisprudential Center (2012).
[23] A. Gorji, Ownership in Islam, Vol. 2, Legal Articles, University of Tehran, 2007.
[24] Th. Gylfason and G. Zoega, Education, social equality and economic growth: A view of the landscape, CESifo Working Paper (2001), no. 876.
[25] M. Hakim Tabatabaei, Mustamsak al-Arwa al-Wasaqi, Vol. 11, Dar al-Tafsir Institute, Qom, 1898.
[26] S.M. Hashemi Shahroudi and the group of researchers, The dictionary of jurisprudence according to the religion of the Ahl al-Bayt, vol. 1, Center for the Great Islamic Encyclopedia, 2003.
[27] D. Jafari-Serasht, A. Salmanpour and S. Shokouhifard, The effects of economic security and foreign trade on economic growth (case study: certain member countries of the Organization of the Islamic Conference), Sci. Quart. Islamic Econ. Bank. 27 (2019), 157–173.
[28] A. Javadi-Amoli, Philosophy of human rights, ISRA, 1998.
[29] S.E. Khandouzi and A. Afsari, Analysis of the fair distribution model of production factors with an Islamic approach, Sci. J. Islamic Econ. 71 (2018), 37–65.
[30] S.M. Kharazi, Badaei al-Ma’arif al-Islamia, Vol. 1, Eslami Publications, 1997.
[31] M.I.Y. Kulayni, Us.ul al-Kafi, Vol. 1, 3, Dar al-kotob al-Islami Publications, 1984.
[32] N. Lakzaei and H. Hajzadeh, Examining the reference of economic security of individuals through the rules of Imamiyyah jurisprudence, Encyclopedia of Economic Law (2014), no. 6, 1–31.
[33] C.C. Lee and C.P. Chang, Social security expenditure and economic growth, J. Econ. Stud. 6 (2006), no. 33, 478–496.
[34] S. Li and B. Wang, Is social justice the superior economic growth model? Comparative analysis on G20 countries, Cogent. Soc. Sci. 6 (2020), no. 1, 1–19.
[35] M.B. Majlesi, Bihar al-Anwar, Vol. 2, 22, Dar Ihya al-Turath al-Arabi, Beirut, 1982.
[36] N. Makarem Shirazi, al-Qavaed al-Faqih, Imam Ali bin Abi Talib School, 1991.
[37] N. Makarem Shirazi, Fiqh al-Moqaren Encyclopedia, Qom: Imam Ali bin Abi Talib School 1 (2006).
[38] A.A. Mazandarani Seifi, The basics of al-fiqh Al-faal fi al-qavaid al-faqih al-asasia, Vol. 1, Islamic Publications Office of the Society of Seminary Teachers of Qom, 2003.
[39] N. Mehrgan and H. Padash, Basics and principles of economics, Faculty of Economic Sciences, Hamedan, 2009.
[40] S.H. Mirmoezi, Distribution of wealth and income in the Islamic economic system from Imam Khomeini’s point of view, A collection of Rahe-Enghelab articles, Islamic Development Coordination Council, Hamahang Publication, 1999.
[41] A. Mobarak, K. Hajbar Kiani, A. Memarnejad and K. Peykarjou, A study on the effects of institutional quality, property rights, and human capital on economic growth (case study: G7 and G8 countries) Appl. Econ. Quart. 9 (2019), no. 28, 1-14.
[42] S.M. Mohaghegh Damad, Rules of jurisprudence, Vol. 1, 2, Islamic Sciences Publication, 2004.
[43] S.H. Mousavi Bojnourdi, al-Qavaed al-Faqih, Vol. 1, Al-Hadi Publication, 1998.
[44] M. Motahhari, An overview of the basics of Islamic economics, Hekmat Pub., 1982.
[45] M. Motahhari, Justice of God, Sadra Publications, 2010.
[46] J.B.H. Muhaqqiq al-Hilli, Sharaei al-Islam fi masail al-halal wa al-haram, Ismailian Institute, 1987.
[47] K. Nadri and V. Ghelich, The governance role of the Islamic state in improving income distribution, Sci. Res. J. Islamic Econ. 35 (2010), 5–32.
[48] M.H. Najafi (Saheb Javaher), Jawahir al-Kalam fi Sharh shara’i’ al-slam, Beirut: Dar Ihya al-Turath al-Arabi 26 (1983).
[49] Sh. Nekouei, M.A. Chitsaz and S. N. Hejazi, A study on social justice and economic and social factors affecting the sustainable development of Torbat-e Jam County, J. Iran. Soc. Dev. Stud. 2019 (2019), no. 3, 35–240.
[50] H. Nouri, Mustadrak al-Wasail wa-mustanbat. al-masail, Vol 11, Al al-Bayt Lahya al-Tarath Institute, 1987.
[51] OECD, Handbook on constructing composite indicators: Methodology and user Guide, Paris, 2008.
[52] A. Oueslati and M. A. Labidi, Growth, inequality, and governance: A case of MENA countries, SSRG Int. J. Econ. Manag. Stud. 28 (2015).
[53] B. Pourseyed, Financial security from the aspect of foreign investment , Economic Security Promotion Conference, Tehran, 2002.
[54] A. I. I. Qomi and A. ibn Ibrahim, Tafsir Al-Qummi, Vol. 1, Dar al-Kitab, 1984.
[55] M. Ranani, R. Dalali Esfahani and A.H. Samadi, The relationship between property rights and economic growth within the framework of an endogenous growth model, J. Econ. Res. 43 (2008), no. 4, 1–32.
[56] S.M. Seyed Nourani and S.E. Khandouzi, Introducing and calculating the composite index economic justice, from the perspective of Islam in Iran, Majles Rahbord Quart. 85 (2016), 57–84.
[57] A. Shakeri, F. Momeni, A. Khadem Alizadeh and S.H. Makhzan Mousavi, Measuring the composite index of economic justice with an Islamic approach in Iran (1994-2017), Bi-quart. J. Iran. Econ. Res. 31 (2019), no. 16, 9–40.
[58] M.I.H. Shaykh Tusi (Bita), Al-Tabyan fi Tafsir al-Qur’an, Vol. 8, Dar Ihya Al-Tarath al-Arabi, Beirut.
[59] S.M.H. Tabataba’I, Al-mizan fi tafsir al-Qur’an, Vol. 5, 24, Publications of the Society of Seminary Teachers of Qom Hawza, 1996.
[60] The Holy Quran.
[61] I. Toutounchian, Cooperation from the perspective of Islam and its theoretical bases, Cooperation 137 (2002), 21–49.
[62] M. Zaranejad, E. Ansari and M. Khodapanah, Estimation of the composite index, Islamic Economy, and its changes in Iran, Econ. Res. Quart. 63 (2016), no. 16, 167–194.
Volume 14, Issue 1
January 2023
Pages 3121-3134
  • Receive Date: 17 June 2022
  • Revise Date: 03 August 2022
  • Accept Date: 09 August 2022