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Trade liberalization and economic growth: a case study of Iran

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  • Kazem Yavari
  • Reza Mohseni

Abstract

We estimate the impact of trade liberalization and physical and human capital accumulation on Iran’s economic growth during the period 1959−2007. Using co-integration techniques and a vector error correction model, we find a unique long-run relationship between economic growth and its major determinants. These determinants include the physical and human capital stock, the labor force, real non-oil exports, and import tariffs. In addition, the short-term error correction dynamics analysis suggests that trade liberalization has a significant long run positive role in dynamic of growth. Our results support the view that the integration of the Iranian economy with the world economy is undoubtedly welfare improving.

Suggested Citation

  • Kazem Yavari & Reza Mohseni, 2012. "Trade liberalization and economic growth: a case study of Iran," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 15(1), pages 13-23.
    • Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:13-23
    DOI: 10.1080/17487870.2011.642579
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    Cited by:

    1. Maryam Almasifard & Sasan Torabzadeh Khorasani, 2017. "Relationship Between Domestic Production in Agricultural and Industrial Sectors and Purchasing Power by Controlling for International Trade Variables (Iran)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 244-253.
    2. Hongzhong Fan & Md Ismail Hossain, 2018. "Technological Innovation, Trade Openness, CO2 Emission and Economic Growth: Comparative Analysis between China and India," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 240-257.
    3. Pradhan , Rudra P. & Arvin, Mak B. & Nair , Mahendhiran & Hall , John H., 2022. "Public Debt, Economic Openness, And Sustainable Economic Growth in Europe: A Dynamic Panel Causal Analysis," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(1), pages 167-183, March.
    4. Rudra P. Pradhan & Mak B. Arvin & John H. Hall, 2019. "The Nexus Between Economic Growth, Stock Market Depth, Trade Openness, And Foreign Direct Investment: The Case Of Asean Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 461-493, June.

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