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Information Journal Paper

Title

The Impact of Government Trade Liberalization Policy on the Economic Complexity of Developing Countries

Pages

  211-238

Keywords

developing countries (D8)Q1

Abstract

 In the literature of international trade economics, the approach of economic complexity implies that the type of products and their production technologies represent the amount of productive knowledge available and the commercial production capacity of the products depends entirely on the countries enjoying the amount of productive knowledge accumulated in the production economy. In this regard, the adoption of Trade liberalization policies has a major impact on the overall structure of the economy as well as on the transfer of knowledge and ideas, through foreign trade imports, which leads to product innovation and increased value added generating. The purpose of this study was to investigate the impact of government Trade liberalization on the economic complexity of eight developing economies named Group D8 member countries during the period 2002-2017; using the PVAR method. immediate reaction test results show that, over a period of 10 years, economic complexity increases with positive shock from variables of trade freedom, foreign direct investment and gross fixed capital formation, but in the long run, the effect of imports of intermediary and capital goods is initially increasing and, after a short period, has a positive downward effect. The results of the analysis of variance also show, the variables of economic complexity, import of intermediate and capital goods, gross fixed capital formation, trade freedom and foreign direct investment respectively have the most impact on economic complexity, respectively.

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    APA: Copy

    SEPEHR DOUST, HAMID, SETAREHIE, MARYAM, & DAVARI KISH, RAZIEH. (2020). The Impact of Government Trade Liberalization Policy on the Economic Complexity of Developing Countries. JOURNAL OF APPLIED THEORIES OF ECONOMICS, 7(1 ), 211-238. SID. https://sid.ir/paper/387350/en

    Vancouver: Copy

    SEPEHR DOUST HAMID, SETAREHIE MARYAM, DAVARI KISH RAZIEH. The Impact of Government Trade Liberalization Policy on the Economic Complexity of Developing Countries. JOURNAL OF APPLIED THEORIES OF ECONOMICS[Internet]. 2020;7(1 ):211-238. Available from: https://sid.ir/paper/387350/en

    IEEE: Copy

    HAMID SEPEHR DOUST, MARYAM SETAREHIE, and RAZIEH DAVARI KISH, “The Impact of Government Trade Liberalization Policy on the Economic Complexity of Developing Countries,” JOURNAL OF APPLIED THEORIES OF ECONOMICS, vol. 7, no. 1 , pp. 211–238, 2020, [Online]. Available: https://sid.ir/paper/387350/en

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