Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’ s Manufacturing Sector

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FALAHATI ALI; ALMASI MOJTABA; GOLI YAHYA

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Paper Information

Journal: Journal of Economic Modelling Year:2019 | Volume:12 | Issue:(43) 3 Page(s): 123-138

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Information Journal Paper

Title

Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’ s Manufacturing Sector

Author(s)

FALAHATI ALI | ALMASI MOJTABA | GOLI YAHYA | Issue Writer Certificate

Keywords

JEL Classification:F10Q1

F14Q1

F17.Keywords:Industry SectorQ1

ISIC ClassificationQ1

New Trade Theory (NTT)Q1

Home Market EffectQ1

Abstract

The main purpose of this paper is to analyze the Home Market Effect hypothesis on Iran's industry. Accordingly, International Standard Industry Classification (ISIC) two‐ digit data of the Iranian industry sector and five major trading partners from 2001 to 2014 and the general equilibrium model with the assumption of incomplete competition have been used. The estimation results showed that the Home Market Effect on the total industry has been confirmed. The results also showed that Home Market Effect was positive in 17 out of 21 studied sectors. Therefore, the expansion of domestic demand in various industrial sectors with protectionism of competitiveness along with the strengthening of intra-industry trade with similar demand structure countries can provide a platform for better penetration in international markets and lead to sustainable growth of industrial exports in the country.

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APA: Copy

FALAHATI, ALI, ALMASI, MOJTABA, & GOLI, YAHYA. (2019). Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’ s Manufacturing Sector. ECONOMIC MODELLING, 12((43) 3 ), 123-138. SID. https://sid.ir/paper/366398/en

Vancouver: Copy

FALAHATI ALI, ALMASI MOJTABA, GOLI YAHYA. Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’ s Manufacturing Sector. ECONOMIC MODELLING[Internet]. 2019;12((43) 3 ):123-138. Available from: https://sid.ir/paper/366398/en

IEEE: Copy

ALI FALAHATI, MOJTABA ALMASI, and YAHYA GOLI, “Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’ s Manufacturing Sector,” ECONOMIC MODELLING, vol. 12, no. (43) 3 , pp. 123–138, 2019, [Online]. Available: https://sid.ir/paper/366398/en

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