Information about Middle East Oriente Medio

Appendix 1: Data Sources and Methodology

International Monetary Fund
Published Date:
March 2007
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Information about Middle East Oriente Medio
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The source for real GDP and investment data for Iran is the latest Central Bank of Iran database; for the rest of the countries, the source is the International Financial Statistics database. The source for employment data for 1960–90 is the International Labor Organization database (1956, 1966, 1976, and 1986 census), and the source for employment data after 1990 is the census conducted by the Statistical Center of Iran. The growth accounting exercise follows the methodology described in Barro and Sala-i-Martin (1995, Chapter 10). The capital stock depreciation rate is 4.9 percent, consistent with the estimates of the Central Bank of Iran, and the initial capital stock is determined through the “rough guess” method suggested by Barro and Sala-i-Martin (1995). The average annual rate of return of capital is 7 percent, which is the long-term international average rate of return estimated by Siegel (1998). The average years of schooling of the labor force are drawn from the Barro and Lee (2000) database for every five years and extrapolated for the periods within each five-year period. Human capital is estimated in terms of average years of schooling following the standard definition used by Lucas (1988).

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