Impact of Trade Liberalization on the Iran’s Employment Level

Trade Liberalization as a feature of globalization provides international competitiveness and contribution of countries to the most economic activities. It is obvious that the lower degree of competion the less chance exists for some firms that wish to continue their activities. However, there is ev...

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Main Authors: Seyed Komail Tayebi, Ph.D, Narjes Zakerfar
Format: Article
Language:fas
Published: Shahid Bahonar University of Kerman 2008-06-01
Series:مجله توسعه و سرمایه
Subjects:
Online Access:https://jdc.uk.ac.ir/article_1885_ac1e8cf5ee4268e24d859ae321919a81.pdf
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author Seyed Komail Tayebi, Ph.D
Narjes Zakerfar
author_facet Seyed Komail Tayebi, Ph.D
Narjes Zakerfar
author_sort Seyed Komail Tayebi, Ph.D
collection DOAJ
description Trade Liberalization as a feature of globalization provides international competitiveness and contribution of countries to the most economic activities. It is obvious that the lower degree of competion the less chance exists for some firms that wish to continue their activities. However, there is evidence in the literature that trade liberalizaion leads to job opportunities in various industires.The objective of this paper is to investigate a dynamic interacted relationship between trade liberalization and emploment for the Iranianian economy. This includes both short-run and long-run effects, arising from globalization which deals with a completed stage of liberalization. We use time series data over 1959-2003, to examine the long-run and short-run trade liberalization-emploment relationship by specifying an ARDL model and ECM, respectively.The estimation results obtained indicate that trade liberalization, through policies either eliminatining or reducing tariff, has a significant short-run effect on the Iran’s employment level. In addition, a proxy for globalization has statistically a significant sign in the long-run employment model, specified by the ARDL (1,0,01). This implies that employment creation in the Iranian economy is based upon an appropriate synchronization between a trade liberalization policy and globalization. The results also show that import liberalization in consumer and a part of intermediate goods has a positive and significant impact on employment, while capital import liberalization affects highly emploment in the long-run.
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spelling doaj.art-b90636d047ec4165a1513581f726a94c2023-05-02T06:50:20ZfasShahid Bahonar University of Kermanمجله توسعه و سرمایه2008-24282645-36062008-06-0111274610.22103/jdc.2007.18851885Impact of Trade Liberalization on the Iran’s Employment LevelSeyed Komail Tayebi, Ph.D0Narjes Zakerfar1Associate Professor of Economy, Isfahan University, Isfahan, Iran.M.A. of Economics, Isfahan University, Isfahan, Iran.Trade Liberalization as a feature of globalization provides international competitiveness and contribution of countries to the most economic activities. It is obvious that the lower degree of competion the less chance exists for some firms that wish to continue their activities. However, there is evidence in the literature that trade liberalizaion leads to job opportunities in various industires.The objective of this paper is to investigate a dynamic interacted relationship between trade liberalization and emploment for the Iranianian economy. This includes both short-run and long-run effects, arising from globalization which deals with a completed stage of liberalization. We use time series data over 1959-2003, to examine the long-run and short-run trade liberalization-emploment relationship by specifying an ARDL model and ECM, respectively.The estimation results obtained indicate that trade liberalization, through policies either eliminatining or reducing tariff, has a significant short-run effect on the Iran’s employment level. In addition, a proxy for globalization has statistically a significant sign in the long-run employment model, specified by the ARDL (1,0,01). This implies that employment creation in the Iranian economy is based upon an appropriate synchronization between a trade liberalization policy and globalization. The results also show that import liberalization in consumer and a part of intermediate goods has a positive and significant impact on employment, while capital import liberalization affects highly emploment in the long-run.https://jdc.uk.ac.ir/article_1885_ac1e8cf5ee4268e24d859ae321919a81.pdftrade liberalizationemploymentiranian economythe ardl procedure
spellingShingle Seyed Komail Tayebi, Ph.D
Narjes Zakerfar
Impact of Trade Liberalization on the Iran’s Employment Level
مجله توسعه و سرمایه
trade liberalization
employment
iranian economy
the ardl procedure
title Impact of Trade Liberalization on the Iran’s Employment Level
title_full Impact of Trade Liberalization on the Iran’s Employment Level
title_fullStr Impact of Trade Liberalization on the Iran’s Employment Level
title_full_unstemmed Impact of Trade Liberalization on the Iran’s Employment Level
title_short Impact of Trade Liberalization on the Iran’s Employment Level
title_sort impact of trade liberalization on the iran s employment level
topic trade liberalization
employment
iranian economy
the ardl procedure
url https://jdc.uk.ac.ir/article_1885_ac1e8cf5ee4268e24d859ae321919a81.pdf
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