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The Relation between Foreign Trade and Economic Growth: A Causality Analysis on the Case Iran

Author

Listed:
  • Ata, Bayram

    (İstanbul Aydın University)

  • Eren, Tevfik Mesut

    (Marmara University)

Abstract

In this paper, we have investigated briefly the economic structure of Iran and assessed the effects of foreign trade as one of the most important factor on economic development. We used the Granger causality analysis to examine whether Iran’s foreign trade is related with its economic growth. The results show that both import and export are granger cause of economic growth. To conclude we can say that the results prove a certain causality between Iran’s foreign trade and its economic development.

Suggested Citation

  • Ata, Bayram & Eren, Tevfik Mesut, 2017. "The Relation between Foreign Trade and Economic Growth: A Causality Analysis on the Case Iran," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 2(4), pages 329-346, December.
    • Handle: RePEc:ris:betajl:0019
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    More about this item

    Keywords

    Economic Growth; Iran; Granger Causality Test; Import; Export; Foreign Trade;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F10 - International Economics - - Trade - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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