Investigation of Relationship between Contraction and Expansion Budget on Iranian Private Sector Investment Risks from 1981 to 2011

Abstract

This research surveys relationship between contraction and expansion budget on Iranian private sector investment risks from 1981 to 2011. The establishment of central banks by industrial nations aimed at money value retaining with gold standard and limited trade with other states which were using gold standard. To achieve this goal, central banks decided to determine as a part of gold standard the interest rates based on which charged their debtors and other banks. The gold standard almost requires monthly adjustment and settlement. This research showed that Iranian economic growth rate (5.1%) equals that of states with low income and is far to reach East Asia developing states (8.9). meanwhile it's a bit higher than average growth rate of developing states in Latin America (3.1), Middle East (4.3%), Africa (4.6), and Europe (5%). As well among selected states this rate for Iran is lower than states like china (10.3%), India (7.1%), UAE (5.8%) and Russia (5.5%), although being lower than states including Saudi Arabia (3.4%), Venezuela (3.9%), turkey (3.8%), Brazil (3.3%). Korea (4.4%), and Libya (4.3%). This comparison suggests that state average economic growth rate is relatively low. Many problems are indicated when investigating per capita production trend and Iranian economic growth rate as well as comparing it to other states. Low per capita production in Iran regarding state potentials makes the problem which suggests low economic welfare. Indeed, Iranian per capita production and thus economic welfare will grow up if economy experiences a long term of high economic growth rate and stability.