The Effects of Targeted Subsidies on Iindustry and Mine Sector (A Computable General Equilibrium Approach)

Subject Areas : Financial Economics

علی اکبر خسروی نژاد ¹ ( استادیار اقتصاد دانشگاه آزاد اسلامی واحد تهران مرکزی، تهران ، )
سجاد برخورداری ² ( - استادیار دانشکده اقتصاد دانشگاه تهران، تهران، ایران )
زوار پرمه ³ ( استادیار موسسه مطالعات و پژوهش‌های بازرگانی، تهران، ایران )

Received: 2016-07-16 Accepted : 2016-09-18 Published : 2016-11-21

Keywords: H20, H139, Keywords: Subsidies, Manufacturing Industry, Iran JEL Classification: H11,

Abstract :

This article seeks to analyze the effects of targeted energy subsidies on the industrial sector. For this purpose, the Computable General Equilibrium model was used.At the sector level, the combination of increases in energy prices, exchange rates and interest rates have been a total of eight scenarios. In scenario increase in energy prices (4 scenarios) employment of labor in the mining and services sectors increased, but in agriculture and industry sectors is reduced. Production of industrial sectors, mining and services will increase in all four scenarios. In all four scenarios to reduce agricultural exports, but exports of industrial, mining and services increases. In scenario increase in energy prices and 81 percent increase in exchange rate, employment for services and mining sectors is increasing, but employment in the industrial and agriculture sectors decreases.Results show that increasing exchange rate with the increase in energy prices offset part of the negative effects of rising prices on exports and is also part of the negative effects of rising energy prices on production also compensates.  

References:

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