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In this paper, we analyze the determinants of Intra-Industry trade (IIT) between Iran and her trading partners, i.e. European :union:, ECO, GCC and ASEAN countries using dynamic panel data and GMM during 1997-2009. This study uses country-specific characteristics such as economic size, per capita income, foreign direct investment, geographical distance, and trade imbalance as explanatory variables. The results indicate that economic size, per capita income, and geographical distance explain most of IIT between Iran and her trading partners. According to econometric findings, the economic size has high and positive correlation with IIT, however per capita income affects negatively IIT. Thus, differences in aggregate demand and supply should be considered in selecting trade partners. The similarity in income structure leads to same demand structure and expansion of trade volume. In addition, geographical distance and trade imbalance has negative effect on IIT flow in Iran. 

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In order to allocate capital optimally and to achieve an appropriate level of employment, the manner and extent of impact of capital stock on employment creation should be investigated in different economic sectors. The paper aims to examine the effects of capital stock on employment in Iran’s industrial sector from 1980 to 2011, using a dynamic approach to demand for labor. In this regard, the demand for labor is estimated as a function of value added, wages, capital stock and labor productivity, using an autoregressive distributed lags model (ARDL). The results indicate that capital stock has positive and significant effect on labor demand and employment across industries in both long-run and short-run, implying complementarity between capital and labor. According to the results of this research, granting more credits to the industrial sector, directing them to purchase new and highly advanced equipment and absorbing foreign investment will lead to create more jobs.