international trading
Mohammad Matash Yar ahmadi; Minireh Rafat; Seyed Komail Tayebi
Abstract
This paper investigates the factors affecting export diversification in Iran. As deducted from heterogeneous trade theory, the main variables of interest in this paper's baseline specification are entry and trade costs. For this purpose, Theil index is calculated for export diversification. This ...
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This paper investigates the factors affecting export diversification in Iran. As deducted from heterogeneous trade theory, the main variables of interest in this paper's baseline specification are entry and trade costs. For this purpose, Theil index is calculated for export diversification. This index is obtained for ten selected two-digit commodity codes in the HS coordinate system. Then the basic model is introduced and estimated by the generalized least squares (GLS) method. Estimated results show that diversification depends negatively on domestic and foreign market entry costs. Therefore, reducing the unnecessary rules for setting up enterprises, customs regulations, creating transportation and financial facilities can help to improve the Iran's export diversification.
Zahra Azizi; Mehdi Pedram; pegah Azizi
Abstract
In recent years, extensive studies have been done on how trade openness affects economic growth; however, a limited number of studies focus on the volatility of economic growth. A group of these studies have identified openness as a factor in achieving more stable economic growth, and also a group of ...
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In recent years, extensive studies have been done on how trade openness affects economic growth; however, a limited number of studies focus on the volatility of economic growth. A group of these studies have identified openness as a factor in achieving more stable economic growth, and also a group of researches have considered it as a factor in creating instability in the economy, therefore, the empirical studies have ambiguous. An important reason for this ambiguity, can be the structure of trade and exports of countries. The export concentration will lead to a disruption of a large part of the country's production and foreign revenues, when there is an export shock. Therefore, in this article, in addition to studying the effect of trade openness on economic growth volatility, the role of export diversification in this connection is examined. To this end, data from the 18 selected developing countries have been used during the years 1980- 2015 in two panel data models. The first model, regardless of the diversification of exports, estimates this relationship, and the second model, enters the export diversification by multiplying it by openness. The results of the research indicate that the greater degree of trade openness, due to the transfer of external shocks to the economy, increases economic growth instability, but the diversification of exports can help to reduce the volatility of economic growth caused by trade.
