Analysing the Impact of Economic Strengthening on Economic Liberalization (A Resistive Economics Approach)

Resistive economics means recognizing the areas of pressure (At the present with many sanctions) and also refer to the consequent attempts to control and deactivate it, and in the ideal situation, to convert such pressures into opportunities. It is evident that the public confidence and participation and also the rational and prudent management are the preconditions for such a matter. Resistive economics reduces dependencies, increases the self-reliance and emphasizes the benefits of local production. The emphasis on self-reliance and advantages of using domestic production will provide the necessary infrastructure for economic liberalization. Increasing the level of economic liberalization generally leads to increase the levels of total production, economic growth and investment rate, and also reduces unemployment and inflation rate. Therefore, according to the need of establishing requirements and infrastructures for resistive economics in the current situation of Iran, and also regarding the importance of economic liberalization in the economic growth, this paper aims at investigating the impact of economic strengthening on economic liberalization. Then, an econometric model is used in this study for estimating the impact of indices of resistant economy on economic liberalization over the period 1996-2013; the variables used in this model include unemployment rate, labour productivity, GDP growth as an indicator of economic growth, capital productivity and growth of export as indicators of a resistant economy. The results show that unemployment rate has a negative and significant effect on economic liberalization, and labour productivity and economic growth have a positive effect on economic liberalization. Also based on the results of the estimated model, the incremental capital output ratio (ICOR) and export growth have no significant effect on economic liberalization.