Iran's Economic Interests from Expanding Trade Relations with Eurasian Economic Union: GDyn Approach

Document Type : Research Paper

Authors

1 PhD Student in Economics, Shahid Bahonar university of Kerman

2 Associate Professor of Economics, Shahid Bahonar university of Kerman

3 Assistant Professor of Economics, Shahid Bahonar university of Kerman

4 Professor of Economics, Shahid Bahonar university of Kerman

Abstract

Trade Agreement between Iran and Eurasian Economic Union can have a handful of economic consequences for Iran;moreover, this research follows to determine Iran's economic interests from the expansion of trade relations with Eurasian Economic Union, in this research, the impacts of decreasing import tariffs of Iran and Eurasian economic union on welfare, trade balance and changes in payments for skilled and unskilled labor based on the model of Dynamic Global Trade Analysis Project (GDyn) and version 10 of its databases were analyzed in a Long-Run horizon during two scenarios (50% decrease and 100% decrease in tariff rates). This study's results indicate that the section " Grains Crops" in terms of the high trade volume and higher tariffs, the section "Processed Food Industry" in terms of the volume of high trade, the "textiles and clothing" sector considering higher tariffs and the "services" sector is also higher than the significant and influential sectors in Iran-Eurasia trade agreement and it is proposed that tariff rate changes are performed with high accuracyin noted sectors

Keywords

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References

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