Rent-seeking

Rent-seeking in the trade sector is an outcome of restrictions imposed on tariffs and import quotas by a government. In an effort to acquire more privilege in foreign trade, labor allocates a part of its time-effort to rent-seeking activity, while cutting down on production work. Given the importance of rent-seeking activity due to restrictions imposed by the government in the Iranian economy, this paper has attempted to calculate the size of rent-seeking activity in the foreign trade sector of the Iranian economy. Hence, a version of the DSGE model has been specified and the related parameters have been estimated in order to calculate the rent-seeking rate. We have applied quarterly data from 1998:1 to 2015:4 for Iran’s trade sector, to obtain the empirical results through calibrating the specified DSGE model. The results have indicated that rent-seeking of Iran’s trade sectors amounted to 0.45, which looks considerably high. Moreover, labor has shared 24 % of its effort time to rent-seeking activity and 76 % to ordinary work.

Objective: Impartial scholars believe that pervasive corruption was a key characteristic of the Pahlavi regime. While extensive research has been conducted on this topic, it has not been thoroughly examined through the lens of the leaders of the Islamic Revolution. This article aims to address this gap by asking: ‘What is Imam Khamenei's definition of corruption, and how does he view its depth and breadth within the Pahlavi regime?’ Method: To answer this question, a content analysis and documentary study approach were used. The research examined and compiled a collection of statements from the Leader of the Revolution. Results: Within the framework of his thoughts and with the aid of historical documents, court insiders' memoirs and writings, and existing research, this study presents examples and evidence of the court's corruption in each area. Conclusions:   The findings indicate that, in Imam Khamenei's view, the Pahlavi regime was afflicted by corruption in its moral, financial, managerial, and political aspects, and that this corruption was widespread. The Shah himself was the core of this corruption, and the closer individuals were to this core, the more corrupt they were.