Search published articles


Showing 5 results for Trade Openness

Hossein Sadeqi, Mohammad Mehdi Barghi Oskooee,
Volume 8, Issue 4 (1-2009)
Abstract

Most debates on the role of trade openness and the wage inequality are based on the well-known Hecscher-Ohlin and Stopler-Samuelson (HOS) theories. According to the Heckscher-Ohlin theory, Countries have comparative advantages in those goods for which the required factors of production are relatively abundant locally while the Stopler-Samuelson theory refers to the income distribution effects of trade openness. In this paper, a computable general equilibrium (CGE) model and social accounting matrix (SAM) approach are used to assimilate the effect of tariff cuts on the earnings of production factors and relative wages by using Iran's data for 2001. The results confirm that general tariff cuts lead to a decrease in wage inequality while it leads to an increase in wage inequality in the foods, apparel and textile sectors. However, tariff cuts in agriculture sector reduce wage inequality.
Mohammad Reza Lotfalipour, Mohammad Ali Falahi, Saeed Hoseini,
Volume 15, Issue 2 (6-2015)
Abstract

Productivity improvement is considered as one of the important strategies for providing economic growth and raising firms’ competitiveness. In this study, using the Divisia method, first the total factor productivity has been calculated during 2003-2009 and then the effects of trade openness, energy consumption and human capital on the total factor productivity has been investigated within subsectors of Iran’s industry. The estimation results using panel data model indicate that the trade openness, energy consumption and human capital have positive and significant effects on the total factor productivity. Meanwhile, the effect of skilled and experienced workers on the total factor productivity is stronger than educated workers.
Dr Saeed Solaymani,
Volume 21, Issue 2 (6-2021)
Abstract

Despite its rich energy resources, Iran is one of the top energy-intensive countries in the world. Improving technology and using new innovations in energy consumption and the production process of goods can reduce energy intensity in the country. In order to investigate the effects of technological innovation on energy consumption, this study uses the Marshallian Demand Framework and bounds testing within the Autoregressive-Distributed Lags (ARDL) method during 1980-2017. The results of this study showed that technological innovation, as an exogenous element in the energy demand function, increases energy efficiency and thus reduces energy consumption at a certain level of economic production. The results of this study confirm the theoretical predictions that the short-run GDP elasticities of energy demand are less than the long-term ones. However, controlling the effect of technological innovation, the study finds that increasing GDP and trade openness create rebound effects of technology innovation on energy consumption.
Dr Hasan Heydari, Mr. Vahid Nikpey Pesyan,
Volume 23, Issue 1 (3-2023)
Abstract

Aim and Introduction 
Unemployment is a major issue in developing countries. The high rate of unemployment means that the country does not use the workforce effectively. Unemployment is the worst economic problem due to its negative impact on the individual and society and the speed of its spread in the world. Therefore, solving the problem of unemployment is one of the most important goals of institutions. Trade liberalization is one of the effective factors in reducing the unemployment rate.
Globalization is an inevitable process with different economic, social and political aspects. Meanwhile, trade liberalization is considered as the main symbol of globalization and its most important driving force. Therefore, considering the high unemployment rate in most of the provinces of Iran, with the increase in commercial liberalization in line with the economic growth and development, it can be seen in the sectors that have a relative advantage. Increasing national security and political and economic stability provides the necessary infrastructure to attract foreign investors. Therefore, by increasing trade liberalization, it is possible to overcome many economic and political problems in the provinces of Iran, and its effects will spill over to the provinces with the high unemployment rate and will increase economic growth, will increase gross domestic product and finally will reduce the unemployment rate in the provinces of the country.
Methodology
In spatial econometrics, spatial effects are added to the performance of periodic or complex regression models (panels). Therefore, in spatial econometrics, sample information has a spatial component. When data has a spatial component, two issues can be discussed: (1) Spatial dependence, and (2) Spatial heterogeneity. Before estimating spatial panel models, we need to perform spatial dependence tests and to check the existence of autocorrelation between disturbance terms. The existence of spatial coherence between observations and spatial autocorrelation between disturbance terms indicates the need to use spatial panel models. To do this, Moran, Jerry C, and Jetis Ord J tests are used. The Moran test examines the assumption of spatial autocorrelation between disturbance terms. In spatial econometric models, to model spatial reactions, it is necessary to select the numerical value of spatial directions. For this purpose, we have two sources of assumptions: (1) Position on the coordinate plane, which is expressed by latitude and longitude, so that the distance of any point in the location, or distance of any observation located at any point relative to fixed or central points or observations can be calculated. (2) The source of spatial information is neighborhood and neighborhood, which expresses the relative location in the space of an observed peripheral unit, compared to other such scales.
Findings
In this study, the impact of trade liberalization on the unemployment rate in the provinces of Iran over the period 2006-2019 was investigated with a spatial econometric approach. First, to check the spatial dependence, the spatial dependence of the provinces was confirmed by the Moran and Jerry C test, and based on the significance of the above tests, the research model was estimated in the spatial panel model. According to the results, trade liberalization shows positive effects on reducing the unemployment rate of these provinces, and this result is compatible with the results of other studies including Yanıkkaya (2008), Li et al (Li & et al., 2020), Adou (2021), Amini and Muradzad (2014) and Samimi et al (2014). The variables of gross domestic product and construction credits have positive and significant effects on reducing the unemployment rate. However, the inflation rate and the wage rate have negative and significant effects on reducing the unemployment rate of the provinces of Iran.
Discussion and Conclusion
Since according to the research literature, part of the unemployment rate is reduced through various channels such as trade liberalization, attracting foreign investment and export, considering that macroeconomic decisions are made in the center of the country, it is suggested It is possible, taking into account the increase in regional and provincial decision powers, it is possible to achieve favorable economic effects in the direction of improving macro-economic variables, policy and regional planning.
The cooperation between the central government and the provincial centers increases the security of the region (country). As a result, high security encourages foreign investment, increases the stability of the economic policy, facilitates the laws and removes obstacles. National security increases the degree of commercial openness, increases production and reduces the unemployment rate.
To achieve a balanced and convergent regional development and to resolve the spatial and financial disparities and heterogeneities of the country's provinces, it is suggested that the allocation of budget resources to the less developed provinces should be increased. And the share of allocation of budget resources of different provinces should be converged. As a result, the provinces of the country, especially the less developed provinces should be able to flourish as much as possible from the point of view of economic growth and unemployment rate reduction.
The lack of economic infrastructure in rural areas, especially in the industrial sector, increases the rate of emigration and the overflow of labor to urban areas. Therefore, the improvement of economic infrastructure and the increase of trade liberalization policies lead to the improvement of technology and innovation in the less developed regions, and ultimately lead to a decrease in the unemployment rate in the province level.
 
Mrs. Nasim Miladi Lari, Dr. Hosein Sharifi Renani, Dr. Saeed Daeikarimzadeh,
Volume 23, Issue 3 (8-2023)
Abstract

Aims and Introduction
The household is an important economic institution, which forms a major part of people's attitudes and beliefs and plays a key role in raising children and the workforce. The vulnerability and ability of this institutional unit to deal with risks are of important impacts on economic performance. On the other hand, developing countries usually face a lack of capital due to low domestic savings and limited access to capital markets. The entry of foreign capital through the receipt of official development aid leads to access to foreign markets with modern technologies and the acquisition of management skills, thus contributing to economic growth. International trade also leads to the provision of capital and machinery, which are necessary for economic development. Thus, the purpose of this article is to analyze the effect of the household risk preparation, official development aid and the trade openness on Iran's economic growth during 1997-2020.
Methodology
In this article, firstly, following the World Development Report (2014) and using the variables of the sub-indices of access to financial resources, social support, human capital and the economic capacity of the government, the combined index of the household risk preparation is calculated by the method of Principal Components Analysis (PCA) in order to weight the selected variables. Then the following model is specified according to Foa (2014) and Zhao et al. (2021). The model is estimated using smooth transition regression (STR) method:  
GDPGt=σ'Xt+Ω'Xt. Tγ,c,st+ξt                                                             (1)
In equation (1), Xt
  is a vector of independent variables (Household risk preparation, official development aid, trade openness, labor force, physical capital and labor productivity), σ'=(σ0,σ1,…,σz)' 
  is the vector of the linear part's coefficients and Ω'=(Ω0,Ω1,…,Ωz)'
   is the vector of the nonlinear part's coefficients. c is the threshold level, γ is the transition speed between regimes, st
  is the transition variable, T is the  transition function. In the STR model, the transition between different regimes is done by the logistic function (LSTR) or the exponential function (ESTR). The linearity of the model should be tested and the appropriate transition variable should be selected.  
Results and Discussion
The results indicate that the household risk preparation index is the transition variable with one threshold level and two regimes (LSTR1), which by passing the threshold level of 0.789% leads to the transfer of the growth function from the first regime to the second. On the other hand, household risk preparation index, trade openness, capital, labor and labor productivity have positive effects on economic growth in both regimes, but their effects have  been intensified in the second regime. This is despite the fact that the variable of official development aid has a positive effect on economic growth in the first regime, but it has no significant effect in the second regime.
Conclusion
According to the results, it is recommended to pay attention to the most important factors affecting household risk preparation, such as the household's access to facilities and financial credits. Since many households in developing countries including Iran do not have accurate knowledge of financial concepts, types of loans and credits, and conditions for receiving loans and credits, it is recommended to increase the level of household awareness in using this type of financial services. The share of loans and credits to the households should be increased and the necessary measures should be taken to facilitate the receipt of loans. On the other hand, it is recommended to design policies in order to increase the minimum wage according to the competence of the workforce, provide specialized training before entering higher education levels, and hold training courses for parents in order to increase investment in the education and health of children. Also, the development of programs based on free and universal health, effective management of foreign debts by directing borrowing resources to highly productive sectors can be proposed to improve the household risk preparation.



Page 1 from 1