Analysis Effects of Goods Market Efficiency on Economic Success with emphasis on variables affecting efficiency (Case Study: Asian Countries with the average upward competitiveness index)

Document Type : Research Paper


1 Ph.D Student in Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

2 Associate professor, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran(corresponding author)

3 Assistant professor, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran


The main purpose of each country is to have high economic growth and to reach developmental levels, which is the necessity to achieve these goals, to use the best available resources in the country and to improve its efficiency and productivity. Promotion of efficiency and productivity affects the main economic, social and political phenomena of societies, such as lowering inflation, increasing welfare, increasing employment and increasing competitiveness. Therefore the purpose of this study is to analyze the long run effects of the goods market efficiency component in the global competitiveness index on the economic success for the period 2008-2019 in Asian countries with the average upward competitiveness index. For this purpose, using the Panel Vector Error Correction Model (PVECM), the effects of goods market efficiency on the economic success of these countries was investigated. In general, the results indicate that by creating a shock in the goods market efficiency, the positive shock of goods market efficiency (improving the goods market efficiency) lead to increase in the rate of economic growth and decrease in the unemployment rate and ultimately, an increase in economic success in the medium and long run. The results of variance decomposition also indicate that the most effective variable on the goods market efficiency is investment, which has the greatest impact in the long run.


Main Subjects

  1. Asgharpour, H., & Mohammadzadeh, P., & Manbei, O. (2012). Investigating the effect of income on labor force happiness in Iran. Journal of Economic Research, 38, 1-139. (In Persian)
  2. Attar, K., & Fattahi, S., & Soheili, K. (2019). Investigating the effect of total productivity momentum of agricultural, industrial and service sectors on macro and sectoral variables of Iran's economy: A stochastic dynamic general equilibrium model approach. Journal of Applied Theories of Economics, 20 (1), 183-241. (In Persian)
  3. Ebadi, J. (1370). Discussions in microeconomics. Tehran: Samat Publications. (In Persian)
  4. Emami Meybodi, A. (2000). Principles of efficiency measurement. Tehran: Institute of Studies and Productivity Publications. (In Persian)
  5. Enders, W. (1995). Applied econometric time series. John Wiley & Sons, In USA.
  6. Fazael Ardakani, B., & Akbari Fard, H., & Jalaei, SA. (2018). The effect of productivity on real exchange rate behavior with emphasis on the abundance of skilled and unskilled labor. Journal of Applied Theories of Economics, 1 (5), 85-112. (In Persian)
  7. Hamalainen, T. (2003). National Competitiveness and Economic Growth: the Changing Determinants of Economic Performance in the World Economy. 1st ed Edward Elgar Publishing.
  8. Honarvar, N., & Ranjbar, H., & Ghobadi, S. (2018). Examining the long-term relationship between goods market efficiency and labor market efficiency in the f global competitiveness index and variables of economic success (economic growth and unemployment) in selected Asian countries. Economic Modeling Research Quarterly, 31, 245-278. (In Persian)
  9. Khodadad Hosseini, H., & Azar, A., & Shah Tahmasebi, I. (2011). Measuring the relative efficiency of Iran's competitive advantage. Journal of Business Management, 13, 91-112. (In Persian)
  10. Lawton, T. (1999). Evalating European Competitiveness and Models for a Successful Business Enviroment. European Business Journal, 11, 195-205.
  11. Lazonick, W. (2009). What is New and Permanent about the New Economy? .Institute for Employment Research, 1-42.
  12. Lutkepohl, H. (2005). New Introduction to Multiple Time Series Analysis. Springer-Verlag, Berlin.
  13. Lutkepohl, H., & Reimers, HE. (1992). Impulse Response Analysis of Cointegrated Systems. Journal of Economics Dynamics and Control, 16(1), 53–78.
  14. Mira Hassani, M. (2013). Investigating the changes in Iran's competitiveness indicators during the past years and Iran's position between the countries of the region and the world. Economic Journal, 2, 25-44. . (In Persian)
  15. Najarzadeh, R., & Tamnaeifar, S., & Gogli, Y. (2012). Investigating the effect of trade liberalization on the productivity of all factors of production in the selected group of Islamic countries. Quarterly Journal of Quantitative Economics (former economic studies), 9, 129-152. . (In Persian)
  16. Porter, M., & Schawb, K. (2008). The global competitiveness report 2008-2009. Geneva: World Economic Forum.
  17. Romer, P. (1992). Two Strategies for Economic Development: Using Ideas and Producing Ideas, World Bank Conference on Economic Development. the World Bank, Washington DC.
  18. Radukic, S & Mastilo, Z & Zorana Kostic, Z & Vladusic, L. (2019). Measuring of The Goods and Labor Markets Efficiency: Comparative Study of Western Balkan Countries. Montenegrin Journal of Economics, 15, 95_109.
  19. Safarian, S. (2014). Assessing the interrelationships between commodity market inefficiency and financial market development in a global competitive environment. Master Thesis, Faculty of Management, Kharazmi University. (In Persian)
  20. Schwab, K. (2010). The Global Competitiveness Report 2010-2011. Geneva: World Economic Forum, 501.
  21. Sims, CA. (1980). Macroeconomics and Reality. Econometrica, 48 (10), 1-48.
  22. Paul, A., & Tuhina, K., & Aditi, R. (2015). FDI and Global Competitiveness of Indian Manufacturing Sector. I J A B E R, 13(3), 1073-1095.
  23. Tao, Z. (2018). Policies to Ensure Asia’s Sustained Economic Success. The IMF Press Center.
  24. Vares, H., & Mohammadi, S., & Parvandi, Y. (2012). The Impact of Global Competitiveness (GCI) on Economic Success of Countries: Presenting a Model for Promoting Iran's National Competitiveness. Iranian Journal of Management Sciences, 26, 25-48. (In Persian)
  25. Xia, R., & Liang, T., & Zhang, Y .(2012). Is Global Competitive Index a Good Standard to Measure Economic Growth? A Suggestion for Improvement. International Journal of Services and Standards, 45-57.