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Trade liberalization and economic growth: a case study of Iran

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  • Kazem Yavari
  • Reza Mohseni
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    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.

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    File URL: http://hdl.handle.net/10.1080/17487870.2011.642579
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 15 (2012)
    Issue (Month): 1 (March)
    Pages: 13-23

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    Handle: RePEc:taf:jpolrf:v:15:y:2012:i:1:p:13-23

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    Cited by:
    1. Sharif Hossain & Rajarshi Mitra, 2013. "The Determinants of Economic Growth in Africa: A Dynamic Causality and Panel Cointegration Analysis," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 43(2), pages 217-226, September.

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