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Iran's Economic Interests from Expanding Trade Relations with Eurasian Economic Union: GDyn Approach

Author

Listed:
  • Balaghi Enalou, Yaser

    (PhD Student in Economics, Shahid Bahonar university of Kerman)

  • Nejati, Mehdi

    (Associate Professor of Economics, Shahid Bahonar university of Kerman)

  • Bahmani, Mojtaba

    (Assistant Professor of Economics, Shahid Bahonar university of Kerman)

  • Jalaee Esfandabadi, Sayyed Abdolmajid

    (Professor of Economics, Shahid Bahonar university of Kerman)

Abstract

Trade Agreement between Iran and Eurasian Economic Union can have a handful of economic consequences for Iran;moreover, this research follows to determine Iran's economic interests from the expansion of trade relations with Eurasian Economic Union, in this research, the impacts of decreasing import tariffs of Iran and Eurasian economic union on welfare, trade balance and changes in payments for skilled and unskilled labor based on the model of Dynamic Global Trade Analysis Project (GDyn) and version 10 of its databases were analyzed in a Long-Run horizon during two scenarios (50% decrease and 100% decrease in tariff rates). This study's results indicate that the section " Grains Crops" in terms of the high trade volume and higher tariffs, the section "Processed Food Industry" in terms of the volume of high trade, the "textiles and clothing" sector considering higher tariffs and the "services" sector is also higher than the significant and influential sectors in Iran-Eurasia trade agreement and it is proposed that tariff rate changes are performed with high accuracyin noted sectors

Suggested Citation

  • Balaghi Enalou, Yaser & Nejati, Mehdi & Bahmani, Mojtaba & Jalaee Esfandabadi, Sayyed Abdolmajid, 2022. "Iran's Economic Interests from Expanding Trade Relations with Eurasian Economic Union: GDyn Approach," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 9(1), pages 1-26, June.
  • Handle: RePEc:ris:qjatoe:0256
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    More about this item

    Keywords

    Iran; Eurasian Economic Union; Preferential Trade Agreements; Dynamic Global Trade Analysis Project (GDyn);
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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