nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2017‒09‒17
four papers chosen by
Sultan Orazbayev


  1. The response of income inequality to positive oil rents shocks in Iran: Implications for the post-sanction period By Farzanegan, Mohammad Reza; Krieger, Tim
  2. Coercive state, resisting society, political and economic development in Iran By Mehrdad Vahabi
  3. Expansion of photovoltaic technology (PV) as a solution for water energy nexus in rural areas of Iran: Comparative case study between Germany and Iran By von Heyking, Carl-Anton; Jaghdani, Tinoush Jamali
  4. Responding to Refugee Crises: Lessons from evaluations in Afghanistan as a country of origin By Susanna Morrison-Métois

  1. By: Farzanegan, Mohammad Reza; Krieger, Tim
    Abstract: We study the short and long run responses of income inequality to the positive oil and gas rents per capita shocks in Iran from 1973 to 2012. Using vector autoregression (VAR)-based impulse response functions, we find a positive and statistically significant response of income inequality to oil rents booms within 4 years after the shock. The Autoregressive-Distributed Lag (ARDL) results show that a 10 percent increase in oil and gas rents per capita leads to 1.1 percent increase in income inequality in the long run. The results are robust after controlling for income-distribution channels in Iran. Our analysis can help policy makers to evaluate and accommodate the possible positive or negative effects of lifting sanctions on inequalities in Iran.
    Keywords: oil rents,inequality,VAR,ARDL,sanctions,Iran
    JEL: Q33 Q38 D63
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:wgspdp:201704&r=cwa
  2. By: Mehrdad Vahabi (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In my studies, I have explored the political economy of Iran and particularly the relationship between the state and socioeconomic development in this country. The importance of the oil revenue in economic development of contemporary Iran has been underlined since the early seventies and a vast literature on the rentier state and authoritarian modernization has scrutinized the specificities of the political and economic natural resource 'curse' in Iran. A new critical social history of the oil industry has recently endeavored to reconsider the spread effects of this industry on the emergence of new cities and labor activities. In this sense, the impact of oil revenue on economic development should be mitigated: it has not been only a 'curse' but also a 'blessing'. The precious results of natural resource curse or blessing notwithstanding, this approach is insufficient to explain why some predatory states reliant on natural resources could contribute to economic development while others hinder such development. Two recent examples provide a salient illustration: why did the Shah's regime which was dependent on oil revenues enhance economic development during 1962-1974, while Ahmadinjead's two terms presidency (2005-2013) imped economic growth despite the quadrupling of oil revenues? In this essay, I will first introduce my theoretical framework and distinguish two types of predatory states, i.e. inclusive and exclusive (section 1). I will then apply this framework to explain oil and economic development (section 2). Section 3 will be devoted to the Shah's regime as an inclusive predatory state, and section 4 to Ahmadinjead's presidency as an illustration of an exclusive predatory state. A short conclusion will follow.
    Keywords: Capital flight,Captive, Intermediary and Fugitive assets,Confiscatory regimes,Inclusive and Exclusive Predatory States,Islamic Republic of Iran,Land Reform,Oil revenues,the Shah regime
    Date: 2017–09–07
    URL: http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-01583595&r=cwa
  3. By: von Heyking, Carl-Anton; Jaghdani, Tinoush Jamali
    Abstract: Iran is suffering from groundwater resources depletion through the excessive subsidized electricity for water pumping and the resulting disproportionate water consumption in agriculture. The creation of an alternative income sources for farmers and elimination of heavy subsidies for groundwater pumping simultaneously is a possible option for dealing with this threat. By expanding photovoltaic technology (PV) in rural areas, farmers can have an alternative source of income by supply and sale of renewable energy through feed-in tariff (FiT) mechanism. The latest decision of the Ministry of Energy in Iran in 2016 for purchasing electricity which is generated by low capacity PV owners can be a solution for the above mentioned problem. This study undertakes a comparison between Germany and Iran of the development of decentralized power system and PV expansion by private owners. In direct comparison to Germany, Iran has a far higher solar radiation and significant potential for the generation of electricity through PVs. This study illuminates both countries' costs of conventional/renewable electricity power, their changing FiT's for renewable power and the renewable energy laws. Comparing the price development shows that a lucrative business arises by selling electricity for the Iranian owners of PV whereas in Germany the trend of self-consumption is clearly preferred. Innovative policies are needed to tackle infrastructural and economic challenges to exploit this potential in Iran.
    Keywords: Iran,Germany,photovoltaic technology (PV),groundwater depletion,electricity subsidy,feedintariff (FiT),decentralized power system,renewable energy laws
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:daredp:1709&r=cwa
  4. By: Susanna Morrison-Métois
    Abstract: This working paper is a case study on Afghanistan as a refugee country of origin. The case study looks at whole-of-government efforts by OECD member countries in Afghanistan, specifically looking at how states have co-ordinated development, diplomatic and defence resources in a refugee country of origin. The case study also examines efforts by the international community to promote stability and state building objectives. The case study was undertaken as part of a wider research project on learning from evaluations to improve responses to situations of forced displacement and supports the synthesis paper "Responding to Refugee Crises in Developing Countries: What Can We Learn From Evaluations?"
    Keywords: 3D, conflict and fragility, corruption, diplomatic defence and development, displacement, evaluation, forced returns, ISAF, NATO, ODA, Provincial Reconstruction Teams (PRTs), refugees, stabilisation, state building, whole-of-government
    JEL: F51 F53 F55 I31 J61 L31 L38 O15 O19 R23
    Date: 2017–09–13
    URL: http://d.repec.org/n?u=RePEc:oec:dcdaaa:40-en&r=cwa

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