Iranian Journal of Trade Studies
Year:2005 | Volume:9 | Issue:36|Papers Count:9

The framework agreement on the Trade Preferential System (TPS) among Islamic countries, - which covers products originating in member countries of the Organization of the Islamic Conference (OIC) - has entered into force following its ratification by ten member states, and trade negotiations among members have started. A total of 12 members signed and ratified the TPS-OIC namely Cameroon, Egypt, Guinea, Islamic Republic of Iran, Jordan, Libya, Morocco, Pakistan, Senegal, Tunisia, Turkey and Uganda in 2002. In this paper, the products and goods in which each country has a comparative advantage are determined based on RCA index at 6-digit level of HS Code during 1997-2001. The Simple Potential method is then used to identify bilateral trade potentials between member countries and Iran. The findings of the study demonstrate that Irans non-oil export to member countries accounts for 204 million dollars on average during the period, while it may be increased up to 400 million dollars. On the other hand, Irans import from TPS members accounts for 409 million dollars while it also can be increased up to 1 billion dollars, and implies a 60 percent un-used capacity. Thus, around 60 percent of trade potential between Iran and these countries has not been fulfilled yet. Moreover, based on RCA, the major exporting (importing) products of Iran have been identified and compared with each members importing (exporting) goods. Strong emphasis should be made on these items during the process of negotiations based on the principles of mutuality of advantages.

In this paper we estimate a panel gravity equation, for a hypothetical free trade arrangement, with import and export ratios, based on a new proof of this equation We find that long run export elasticity with respect to income is greater than that of imports and trade balance will be positive in the long run. After imposing equal elasticity condition in estimation, we find that export and import elasticities, are nearly equal on (1.011). Export and import ratio terms are also included in the estimation which shows the positive effects of import similarity and third countries export to members on bilateral trade flows. The elasticities of import to foreign exchange reserves and real exchange rate are rather small which points to the fact that only growing productivity could help positive trade balance.

This paper uses the Iranian time series data over 1980-2000 and a direct measure of product variety calculated from Iran export and import data (Feenstra index of the product variety) to find out the impact of trade variety on the economic growth of Iran. Applying semi-endogenous growth model and co integration technique, the main finding indicates that the trade variety alongside with other variables, such as human and physical capital has a positive influence on economic growth of Iran in the long run.

The purpose of this paper is to analyze and estimate the residential demand for internet in city of Tehran. The information required for the study was gathered through a questionnaire designed for this purpose. The questionnaires then gathered and analyzed qualitatively to assess the impact of different socio-economic variables on the internet demand and were also used for estimation purposes. The sample consisted of 385 randomly selected families in different regions of Tehran, which were face-to-faced interviewed in a period of one month. For estimation purposes a Logit model is employed and the results are analyzed accordingly. The results of the paper show that income, education and household size have a positive impact on internet demand, while age and access price turned to be negative. Some variables such as gender did not have a significant effect on the internet use.

Inflation has been the focus of numerous studies in the recent decades, both for developed and under-developing countries. Although there is a general understanding about the consequences of inflation, its causes and cures are still controversial issues amongst economists. None of the two competitive views concerned with developing countries, monetarism and structuralism, provide a wholly successful theoretical model to explain price behavior. This article attempts to suggest a synthesis for more appropriate modelling. To examine the long run relationship between inflation rate and all determinant factors influencing it (during 1959-2002), Auto regressive distributed lag (ARDL) method has been used. The results indicate that output, import price index, liquidity and exchange rate are the variables influential on inflation rate in Irans economy.

Worldwide development of electronic commerce is undeniable and joining this manner that facilitates trading and resulting fast communication, is one of the supplements of our Internet market. In this paper we discuss ways of electronic offer and acceptance, time and place of contracting, validity and other requirements. The analysis of these subjects have been done by studying Iranian Electronic Commerce Law [ICEL], UNCITRAL Model Laws, Vienna Convention [CISG] and provisions of progressive countries in this area.

The trade cooperation has been one of the most important objectives of the formation of D-8, but the comparison of figures relating to trade flows between the member countries, demonstrate that, so far, considerable growth has not been achieved in intra-trade of the Group. The purpose of this paper is to identify the potentials of expanding trade between Iran on the one hand and the individual countries of the Group on the other hand. In doing so, the main emphasis has been put on the identification of potentials at commodity level. The paper, thus, attempts to find answer to the two following questions: 1-Is there possibility of increasing trade between Iran and individual countries of the Group? 2-The exchange of what commodities leads to the expansion of bilateral trade between Iran and the countries concerned? For determining the trade potentials, the simple estimation methodology for identifying the trade potentials is employed and the main variables used are the volume of trade between member states, their total trade and individual commodity trade at 6-Digit level of H.S. Code. The results indicate that there exists a fairly good potential for Iran to expand its volume of trade with individual countries of the D-8 Group, but in practice in most cases these potentials remain either untapped or underutilized.

Knowing about auto parts industry for its role in the chain of auto value and exploring its comparative advantages play an important role in the international process of specialization in production, and is a basic necessity for car industry and auto parts in the country. We analyze the cost structure and estimate comparative advantages in automotive parts and components (PEUGEOT 405GLX) by using Domestic Resource Cost index, in this survey (Based on SAPCO contracts as the supplier of IKCO). It is made clear in the first part that the share of the intermediate auto parts cost between 1376-1381 has risen considerably. Because in recent years, modular production strategy by auto suppliers was followed in the world. This issue has been an important reason for the declining trend of the share of value added in IRAN auto parts industry. It is made clear in the second part that our country had comparative advantage in transmission and steering systems and subsystem of springs from suspension system in 1380. Also this survey argues that our country had potential comparative advantage in brake system of car in 1380 and it can concentrate auto parts productions on those groups.