Document Type : Article-Based Dissertations

Authors

• Farzam Sajadieh ¹
• Sadegh Bakhtiari ²
• sara ghobadi ³

¹ Ph.D. Student of Economics, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

² Professor of Economics, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

³ Assistant Professor of Economics, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

Abstract

EXTENDED ABSTRACT
INTRODUCTION
Institutional economists have considered institutions and institution-based structures as the fundamental factors of the growth in new theories of economic growth. Accordingly, an increasing number of studies, besides analyzing the relevant institutions and structures, have investigated the relationship between these factors and economic growth. Risk management, as an institutional economics-based motivating structure, has a significant and special position. Accordingly, this research attempts to formulate an indicator to measure household risk management and investigate its impact on the economic growth of selected countries of the Organization of Islamic Cooperation (OIC) for the period 2005-2017.
 
METHODOLOGY
In this study, a dynamic panel data approach has been used to evaluate the role of household risk management in the economic growth of selected countries of the Organization of Islamic Cooperation during the period 2005-2017. In addition, the required information has been received from the World Bank and the International Monetary Fund.
Specifying research model
To investigate the study’s hypotheses following equations were used:
                                                             (1)
In these equation GDPG, HRM, SE, POPG, INF, K and LP refer respectively to gross domestic product growth, household risk management, self-employment, population growth rate, inflation, gross capital formation and labor productivity.
 
FINDINGS
The results of this study show that in selected Islamic countries and in the period 2005 to 2017, the effect of household risk management and self-employment on economic growth was positive and significant and the effect of population growth rate and inflation on economic growth was negative and significant. In fact, increasing household access to credit by investing in education and health; Improving social support through adaptation of labor supply and demand; Strengthening human capital by increasing productive power and ultimately improving the state capacity by improving household livelihoods as positive consequences of household risk management and increasing innovative activities as a positive consequence of self-employment will increase economic growth. . Meanwhile, increasing inflation by reducing the purchasing power and investment, and on the other hand, increasing the population growth rate due to limited resources and insufficient infrastructure, can reduce economic growth.
 
CONCLUSION
Based on the positive and significant effects of household risk management and self-employment and negative and significant effects of population growth rate and inflation on the economic growth of selected OIC member countries in the desired period, these policy recommendations can be suggested:

Keywords

• Household
• Risk Management
• Composite Index
• Economic Growth
• Dynamic Panel Data

Main Subjects

• Microeconomic Theory