Ideas, increasing return to scale, and economic growth: an application for Iran

Iran has experienced an increasing rate of economic growth during recent years. We need to explain the causes of this growth if we are to help maintain it. In this study, we try to calibrate and apply a model in the context of new growth models, based on Ideas derived from the Iranian economy. The results show that an increase in education levels and expansion in research activities are the main factors promoting economic growth in Iran during the studied period.