THE EFFECT OF TRADE LIBERALIZATION ON IRANIAN LABOR PRODUCTIVITY IN AGRICULTURAL SECTOR

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TAVAKOLI AKBAR; MIRMOHAMMAD SADEGHI S.J.; KAMARI E.

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Journal: Journal of Agricultural Economics & Development Year:2008 | Volume:22 | Issue:1 Page(s): 27-33

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Title

THE EFFECT OF TRADE LIBERALIZATION ON IRANIAN LABOR PRODUCTIVITY IN AGRICULTURAL SECTOR

Author(s)

TAVAKOLI AKBAR | MIRMOHAMMAD SADEGHI S.J. | KAMARI E. | Issue Writer Certificate

Keywords

TRADE LIBERALIZATIONQ2

IRANQ2

AGRICULTURAL SECTORQ2

LABOR PRODUCTIVITYQ3

Abstract

The main purpose of this paper is to analyze the effect of TRADE LIBERALIZATION on the IRANian LABOR PRODUCTIVITY in AGRICULTURAL SECTOR. The agricultural exports and total imports tariff rate are used as two TRADE LIBERALIZATION policies. In addition to physical capital and labor inputs, the human capital is also used in a neoclassical model. A time series data, from 1963 to 2003, and the OLS method and an error correction model (ECM) are applied to estimate the long- run and short- run relationship between TRADE LIBERALIZATION policies and the productivity. The estimated results show that increasing agricultural exports and reducing import tariff rate have positive effect on the LABOR PRODUCTIVITY in AGRICULTURAL SECTOR both in the short- run and long- run. Even though the effect of human capital on the productivity is positive but it is only statistically significant in the short- run. In the long run, as a result of 10 percent increase of export per labor, or decrease of import tariff rate, the level of LABOR PRODUCTIVITY rises by 0.5 percent and 0.9 percent, respectively. Since the effect of reducing tariff rate is higher than the effect of increasing export per labor, the policymakers should change their policies towards adjusting the tariff rates.

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APA: Copy

TAVAKOLI, AKBAR, MIRMOHAMMAD SADEGHI, S.J., & KAMARI, E.. (2008). THE EFFECT OF TRADE LIBERALIZATION ON IRANIAN LABOR PRODUCTIVITY IN AGRICULTURAL SECTOR. JOURNAL OF ECONOMICS AND AGRICULTURE DEVELOPMENT, 22(1), 27-33. SID. https://sid.ir/paper/142177/en

Vancouver: Copy

TAVAKOLI AKBAR, MIRMOHAMMAD SADEGHI S.J., KAMARI E.. THE EFFECT OF TRADE LIBERALIZATION ON IRANIAN LABOR PRODUCTIVITY IN AGRICULTURAL SECTOR. JOURNAL OF ECONOMICS AND AGRICULTURE DEVELOPMENT[Internet]. 2008;22(1):27-33. Available from: https://sid.ir/paper/142177/en

IEEE: Copy

AKBAR TAVAKOLI, S.J. MIRMOHAMMAD SADEGHI, and E. KAMARI, “THE EFFECT OF TRADE LIBERALIZATION ON IRANIAN LABOR PRODUCTIVITY IN AGRICULTURAL SECTOR,” JOURNAL OF ECONOMICS AND AGRICULTURE DEVELOPMENT, vol. 22, no. 1, pp. 27–33, 2008, [Online]. Available: https://sid.ir/paper/142177/en

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