Investigating the Impact of the Technology Gap in Eurasian Countries on the Growth of Iran's Economic Sectors (Regional Computable General Equilibrium Model Approach)

Document Type : Scientific paper

Authors

1 PhD student in Economics, Department of Economics, Faculty of Literature and Humanities, Islamic Azad University, Kerman, Iran.

2 Professor of Economics, Department of Economics, Faculty of Economics and Management, Shahid Bahonar University, Kerman, Iran.

3 Associate Professor of Economics, Department of Economics, Faculty of Literature and Humanities, Islamic Azad University, Kerman, Iran.

Abstract

According to the technological divide theory, when an innovation company in a country produces a new product, the considered country has a temporary monopoly position in the production of that product, and by exporting to other countries, the relative advantage of producing goods will transfer from origin country to the country of destination. Therefore, the technological gap between countries can affect their economic growth and trade. Hence, in this study, the scenarios of reducing the digital divide (1%, 2%, and 5%) of Eurasian countries on the growth of Iran's economic sectors (agriculture, industry, and services) was studied using the regional computable general equilibrium (CGE) model. For this purpose, the share of research and development expenses to GDP was used as an index of the digital divide. In addition, to collect the required data, version 10 of the GTAP database, which includes the Social Accounting Matrix (SAM) of 141 countries or regions and 65 sectors, was used. Data were collected in the form of three sections, including agriculture, industry, and services, and five production factors, including skilled labor, unskilled labor, natural resources, land, and capital, and seven regions, including Iran, members of Eurasian Union (Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia), and other countries. Finally, data analysis was done using MathLab software. Results show that with the decrease in the digital divide of Eurasian countries, the economic growth of Iran's industry and mining, agriculture, and service sectors will increase. In addition, among the examined economic sectors, with the reduction in the digital divide of Eurasian countries, the economic growth of services, industry, mining, and agriculture sectors in Iran will increase, respectively.

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References

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Macroeconomics Research Letter
Volume 18, Issue 38
December 2023
Pages 81-102

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History

  • Receive Date: 19 November 2023
  • Revise Date: 08 January 2024
  • Accept Date: 08 January 2024

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