Journal of Economics and Development Studies

Estimates of the Steady State Growth Rates for Iran Economy in Solow Growth Model Framework
Morteza Sameti, Ramiar Refaei, Shahrzad Seyyed Salehi

Abstract
This paper estimates the steady state growth rate for iran economy ,We shall use an extended version of the Solow (1956) growth model, in which total factor productivity is assumed to be a function of human capital (measured by average years of education), and trade openness. Using this framework we show that the education and trade openness have played an important role to improve the longrun growth rate. Our empirical results, with data from iran, show that trade openness and education have significant and permanent growth effects and a few broad policies to improve these steady state growth rate are suggested.

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