Trade Liberalization and Economic Growth in Iranian Economy

17 Pages Posted: 24 Dec 2011

See all articles by Mohammad Rahimi

Mohammad Rahimi

Bu-Ali Sina University - Faculty of Economics and Social Science

Aboulfazl Shahabadi

Bu-Ali Sina University - Faculty of Economics and Social Science

Date Written: December 23, 2011

Abstract

The goal of this study is to investigate the effect of trade liberalization on economic growth in Iranian economy using a Cobb-Douglas production function, which is expanded to take into account political instability and trade liberalization. The empirical results show that in the long run the real export and import duty have positive effect on GDP, while the Labor force and education causes to decrease the GDP. Moreover the Iranian activity to become a membership of WTO (as a proxy of trade liberalization) is an effective factor on economic growth in Iran.

Keywords: Trade liberalization, GDP, ARDL approach, Iranian economy

JEL Classification: E3, F4, F5

Suggested Citation

Rahimi, Mohammad and Shahabadi, Aboulfazl, Trade Liberalization and Economic Growth in Iranian Economy (December 23, 2011). Available at SSRN: https://ssrn.com/abstract=1976299 or http://dx.doi.org/10.2139/ssrn.1976299

Mohammad Rahimi (Contact Author)

Bu-Ali Sina University - Faculty of Economics and Social Science ( email )

Hamedan
Iran

Aboulfazl Shahabadi

Bu-Ali Sina University - Faculty of Economics and Social Science ( email )

Hamedan
Iran

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