AN EMPIRICAL & THEORETICAL STUDY ABOUT THE EFFECTS OF TARIFF ON ECONOMIC GROWTH

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RAHIMI BOROJERDI A.R.

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Journal Paper

Paper Information

Journal: JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH) Year:2002 | Volume:3 | Issue:7-8 Page(s): 0-0

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Title

AN EMPIRICAL & THEORETICAL STUDY ABOUT THE EFFECTS OF TARIFF ON ECONOMIC GROWTH

Author(s)

RAHIMI BOROJERDI A.R. | Issue Writer Certificate

Keywords

TARIFF

ECONOMIC GROWTH

INTERNATIONAL TRADE.

Abstract

One of the methods for studying the relation between economic growth and INTERNATIONAL TRADE.is considering the effects of TARIFF on economic growth. The neo-classic economists believe that free trade not only has wonderful benefits for every country but for all in the world, therefore, they are seeking for laterally and multi-conceptual removal of trade restrictions and advise on the contrary the countries with taking into consideration of specialization to do their best in production and international division of labor with little interference of government in INTERNATIONAL TRADE. They confirm that all trade distortions out of governmental economic policies may deviate the economic growth rate and per capita income in a long-term process of transitional period from its main path. In this paper and in order to show the effects of TARIFFs on economic growth, at first we maximize the household utility function in a neoclassic model. The period of our study is from 1961 up to 1998 lunar. The effects of TARIFF on ECONOMIC GROWTH have been considered in two different scenarios. In the first scenario, we assume that exogenous technological progress rate is equal to 2% and depreciation rate is equal to 10%. In the second scenario, the exogenous technological progress rate is 2% and depreciation rate is 5%. Both The results of both confirm that any trade restrictions may results in a reduction in economic growth rate. In this manner, the effect of TARIFF rate on economic growth in post- revolution period in comparison with prerevolution one has decreased due to the result of reduction in degree of openness and reduction of population growth rate. On the other hand, any lower depreciation rate may have a negative effect on economic growth. Therefore, we conclude that trade, free from any limitations, may pave the way for ECONOMIC GROWTH and reveal its positive effect on it.

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APA: Copy

RAHIMI BOROJERDI, A.R.. (2002). AN EMPIRICAL & THEORETICAL STUDY ABOUT THE EFFECTS OF TARIFF ON ECONOMIC GROWTH. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), 3(7-8), 0-0. SID. https://sid.ir/paper/530349/en

Vancouver: Copy

RAHIMI BOROJERDI A.R.. AN EMPIRICAL & THEORETICAL STUDY ABOUT THE EFFECTS OF TARIFF ON ECONOMIC GROWTH. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)[Internet]. 2002;3(7-8):0-0. Available from: https://sid.ir/paper/530349/en

IEEE: Copy

A.R. RAHIMI BOROJERDI, “AN EMPIRICAL & THEORETICAL STUDY ABOUT THE EFFECTS OF TARIFF ON ECONOMIC GROWTH,” JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), vol. 3, no. 7-8, pp. 0–0, 2002, [Online]. Available: https://sid.ir/paper/530349/en

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