Estimation of the period of return in public and private sector investment in Iran

Abstract

Investment in all countries of the world is considered as the engine of development and prime-mover of economy ; In fact more production and investment will result in more improvement of economy. Here the governmental and private sectors as the major investors in Iran can have different impacts depending on different approaches and conditions. On the one hand, the government is required to prioritize social benefits using oil income and public infrastructures; on the other,the private sector focuses on the efficacy of the yield of investment in competition with the government whose policy miscalculation will lead to the decline of the private sector’s return efficacy. In the present study, using Almon’s dilatory distribution, researchers determine the period of yield of investment in both government and private sectors to provide the investors with good ideas and suggestions and present a criterion for the evaluation to administer the investment. Findings indicate that the length of the return of the investment is seven and ten years for private sector and government respectively. Moreover, the highest efficacy for private sector occurs in the fourth period while the governmental sector reaches the highest efficacy in the fifth period.; ;

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