Studying the structure of economic and modelling of economic growth on the basis of Solow model

Abstract

Investigation on the effective factors that have some effects on economic growth is an important task. Although a considerable number of studies have been placed on economic growth in the world, it receives little attention in Iran. In this article, estimating growth regression, we try to investigate the supply side economic growth in Iran. The results show that there had been negative significant relationship (-0.035) between unstable policy and economic growth rate in Iran from 1959 to 2001. In this model, the effect of used expenses of the government is positive (0.01). Furthermore, the estimated results of long time relationship show that the variable coefficient of capital is about 0.319, the variable coefficient of labour power is about 0.016, the variable coefficient of exportation is about 0.001 and the variable coefficient of inflation is about -0.001. Furthermore, the forecasting model of this study expects that the average annual growth of the years had been about 7.12% from 2002 to 2006. Key words: Economic growth, forecasting growth, economic structure, supply side economics, economical factors, Solow model, human being capital.