IMPACT OF TRADE LIBERALIZATION ON THE IRAN'S IMPORTS ALLOCATION MODEL

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RANJBAR H.; TAYEBI S.K.; KHOUSH AKHLAGH R.

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Journal: Iranian Journal of Economic Research Year:2006 | Volume:8 | Issue:28 Page(s): 15-38

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Title

IMPACT OF TRADE LIBERALIZATION ON THE IRAN'S IMPORTS ALLOCATION MODEL

Author(s)

RANJBAR H. | TAYEBI S.K. | KHOUSH AKHLAGH R. | Issue Writer Certificate

Keywords

ALMOST IDEAL DEMAND SYSTEM (AIDS)Q1

IMPORT ALLOCATION MODELQ3

MAXIMUM LIKELIHOOD METHODSQ3

ERROR CORRECTION MECHANISMQ3

STRUCTURAL STABILITY TESTQ3

Abstract

The possible WTO membership of Iran not only depends on liberalizing the trade sector but also needs to meet the relevant conditions of a specific development process. To examine these conditions we specify an unconstrained first-order autoregressive model of the Almost Ideal Demand System(AIDS), as a long-run demand model, for Iran's import allocation over foreign and domestic supplies of manufacturer.In this paper, the structural stability of the AIDS model is tested by using time series data for the period 1993-2002. The significance of trade liberalization, proxied by a dummy variable over the period reveals both trade creation and trade diversion in the Iran's imports In addition, the conduction of different scenarios on reducing tariff, arising from the Iran's fourth development program, over the ex-ante period 2003- 2007 indicates that there is no structure break in the country's import demand. The implication of this result is that a decrease in tariff through a relatively accelerated speed of adjustment can be utilized for the promotion of trade between Iran and her trading partners.

Cites

References

AN INVESTIGATION OF IRAN"S IMPORT DEMAND STRUCTURE:AN APPLICATION OF AIDS MODEL (1978-2002)

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APA: Copy

RANJBAR, H., TAYEBI, S.K., & KHOUSH AKHLAGH, R.. (2006). IMPACT OF TRADE LIBERALIZATION ON THE IRAN'S IMPORTS ALLOCATION MODEL. IRANIAN ECONOMIC RESEARCH, 8(28), 15-38. SID. https://sid.ir/paper/2693/en

Vancouver: Copy

RANJBAR H., TAYEBI S.K., KHOUSH AKHLAGH R.. IMPACT OF TRADE LIBERALIZATION ON THE IRAN'S IMPORTS ALLOCATION MODEL. IRANIAN ECONOMIC RESEARCH[Internet]. 2006;8(28):15-38. Available from: https://sid.ir/paper/2693/en

IEEE: Copy

H. RANJBAR, S.K. TAYEBI, and R. KHOUSH AKHLAGH, “IMPACT OF TRADE LIBERALIZATION ON THE IRAN'S IMPORTS ALLOCATION MODEL,” IRANIAN ECONOMIC RESEARCH, vol. 8, no. 28, pp. 15–38, 2006, [Online]. Available: https://sid.ir/paper/2693/en

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