The globalization process, the mixing and integration of national economies into the global economy, has been the most controversial debate among policy makers and programmers in recent decades. Trade LIBERALIZATION defined as the movement towards free trade by reducing tariffs and other trade barriers is the most driving force to globalization. LIBERALIZATION and globalization increase the volume and type of border exchange of goods and services (international trade increase), cause the increase in foreign and international direct investment and also enhance technology transfer and global production. It is therefore very important. This paper investigates the short-term and long-term effects of trade LIBERALIZATION on macroeconomic indexes of using vector error correction model (VEC) during the period 1990-2009 and 1996-2009 have been reviewed. Estimation results indicate that trade LIBERALIZATION policies in the long run in terms of establishment of model calculated by the researcher leads to increased production volume and productivity as well as reducing inflation, but do not affect the trade balance. The negative effect of LIBERALIZATION on the volume of money in our country is still not significant.

Findings of a partial equilibrium analysis applied on time-series data of 1340-79 were used to forecast possible welfare effects of tobacoo market LIBERALIZATION in Iran. Using a forecasting model, the effects were predicted for future. The results show that as a results of market LIBERALIZATION, government expenditure and imports will decline. This policy increases the social welfare and creates social benefits as well. Despite a relative decrease in consumers welfare, the improvement in producer’s surplus is so high that can lead to an increase in social welfare. In general, tobacoo market is recommended to be liberalized in next coming years.

This paper attempts to analyze the macroeconomic effects of energy price LIBERALIZATION and redistribution of its proceeds to households. Energy price control and energy subsidies are of the most popular supportive policies in the economy of Iran. Nonetheless, increasing the energy price of households and firms has been exercised in recent years to counter the government budget deficit. In 2008, the government proposed a reform: energy price LIBERALIZATION and redistribution of its proceeds to the household. In this paper, we analyze the macroeconomic effects of this policy according to different scenarios. In view of monetary aggregate control policy, our results show that in addition to a decline in energy intensities of households and firms, the average household’ s welfare increases. Most of this increase happens in the short-run as households’ real incomes rise more in the short run. Moreover, we find that this reform results in a decline in labor supply due to the subsidy distribution, and hence a decline in both output and capital accumulation in the short run and the long run. In the scenario where only the household’ s energy price rises, results are qualitatively similar with a smaller quantitative effect. Finally, it is important to note that a complete analysis of this reform should include 1) the technological progress that can be associated with a reform, 2) implementing a monetary policy that is more consistent with Iran’ s institutional arrangement and 3) the political economy aspects of the reform, which are all out of the scope of this paper.

One of the most influential of the national economic indicators is gross domestic product, But since this measure does not consider the costs of eliminating pollution and the negative effects of environmental, has been criticized. In the other word, GDP is not an appropriate criteria for measuring economic welfare, so green GDP has been introduced for measuring of economic welfare. Major objective of green GDP is the accounting systems that are provided an exact and correct criteria of economic welfare. In this paper, to assess the impact of trade LIBERALIZATION on green GDP, we used the Autoregressive Distributed Lag approach and time series data over the period 1357-1388. The results of estimating model show that increased trade LIBERALIZATION leads to an increase in green GDP, So that elasticity of green GDP to the trade LIBERALIZATION in the long term and short term respectively is 0.082 and 0.044.