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Investigating the Impact of Preferential Trade Agreement Between Iran and Turkey on Production of Different Ecnomic Sectors in Iran: Based Dynamic GTAP

Author

Listed:
  • Farzi, Nasrin

    (PhD student in International Economics, University of Tabriz)

  • Salmanibishak, MohammadReza

    (Assistant Professor University of Tabriz)

  • Nejati, Mehdi

    (Assistant Professor University of Kerman)

Abstract

Reducing or eliminating tariff rates on imported and exported goods is one of the most important issues that can act as a stimulus between the production, employment and export sectors. Preferential trade agreement between Iran and Turkey will facilitate trade relations between the two countries in order to encourage domestic producers and increase their motivation Compared to other competitors to improve the quality of goods and increase production in various sectors to attract domestic and foreign markets. The present study intends to investigate the trade effects of the economic agreement between Iran and Turkey on the production, export and import of the agricultural and industrial sectors using a dynamic GTAP (Global Trade Analysis Project) model for the period 2011-2025. As an application of the model, a preferential trade scenario for Iran is simulated in accordance with the agreement. The results of the agreement show that although the individual components of the agreement will reduce production in a few cases, in general, almost all sectors will increase production in 2025.

Suggested Citation

  • Farzi, Nasrin & Salmanibishak, MohammadReza & Nejati, Mehdi, 2021. "Investigating the Impact of Preferential Trade Agreement Between Iran and Turkey on Production of Different Ecnomic Sectors in Iran: Based Dynamic GTAP," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 8(2), pages 129-152, September.
    • Handle: RePEc:ris:qjatoe:0230
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    More about this item

    Keywords

    Preferential Trade Agreement; Production; Global Trade Analysis Project; Economic Sectors;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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