Volume 8, Issue 3 (2008)                   QJER 2008, 8(3): 121-140 | Back to browse issues page

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Hosseini M A, Agheli L. the Quantitative Effects of ECO Trade Agreement(ECOTA) Implementation on Trade Development of Iranمان. QJER. 2008; 8 (3) :121-140
URL: http://ecor.modares.ac.ir/article-18-3188-en.html
1- Institute for Trade Studies and Researches
2- Tarbiat Modares University
Abstract:   (4202 Views)
This paper investigates the quantitative Effects of ECO Trade agreement(ECOTA) implementation on trade development of Iran. For this purpose, the amount of tariff reduction effects on Iran’s exports(to) or its imports( from) ECO members is estimated and analyzed. The results indicate that with implementation of tariff rate reduction in ECOTA framework, Iran’s exports to ECO countries in 2008 relative to base year(2003) will increase about 1.27 million U.S. dollars( only to Pakistan). Also, Eco members’ imports from Iran will not be substituted by imports out of region. A review of ECO members with reference to taking effect them from ECOTA implementation means that except for Pakistan and Uzbekistan, None of them are obliged to tariff reduction up to 10% marginal rate. On the other hand, Iran’s tariff rate reduction in the ECOTA framework results in increasing 18.99 million U.S. dollars in Iran’s imports from ECO countries. Regarding a substitution-price elasticity near to zero for Iran’s imports from ECO countries and despite of discriminatory tariff reduction of imports from these countries, Iran will not substitute the imports originating from ECO by importing from other countries out of region. Indeed, an 18.2 percent tariff rate reduction in Iran’s imports from ECO will result in 1.6 percent increase in total imports from these countries.
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Received: 2007/05/15 | Accepted: 2008/01/13 | Published: 2008/03/21

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