Document Type : Article-Based Dissertations
Authors
1 Ph.D. student of Economics
2 Department of Theoretical Economics, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran
3 Department of Economic Planning and Development, Faculty of Economics, Allameh Tabataba`i University, Tehran, Iran
4 Department of Theoretical Economics, Faculty of Economics, Allameh Tabataba`i University, Tehran, Iran
Abstract
A successful growth strategy in countries is based on a two-sided effort: a short-term strategy to stimulate growth and the other, a medium-term to a long-term strategy to maintain and sustain growth. Therefore, to achieve stable and rapid growth that accompanies development, it is necessary to carry out a structural transition (industrialization) in a country quickly on the one hand. On the other hand, investment takes place in fundamentals (human capital and institutions) to a great extent. In this research, the pattern of economic growth in Iran has been investigated in the form of an ARDL model for the years 1970-2019. The findings of the article show that first, in the long term, structural changes, human capital, and institutional index (fundamentals) have had a positive and significant role in Iran's economic growth. Second, the behavioral pattern of structural changes has been positive in the years when Iran did not face economic crises. Third, due to the fluctuating behavior of structural changes and within-sector productivity, labor mobility in Iran from one sector to another has been costly and requires long-term decisions. Finally, regarding structural changes and fundamentals, economic growth in Iran has experienced a heterogeneous and different pattern. Based on the research findings, it is suggested to implement institutional reforms, improve the quality of human resources and create policy frameworks that make macroeconomic stability to achieve sustainable growth of Iran's economy.
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