Impact of Shocks of trade liberalization on economic growth And Assessment their symmetry and asymmetry (Case of Iran: 1976 to 2011)

Document Type : Research Article



According to constraints facing the countries in adopting different strategies to trade liberalization and different effects on economic growth, what is important, the effects of trade liberalization in different fields be stable and create sustainability capacity in economic growth rate. This means that if some of these liberties be canceled after trade liberalization, country has economic growth or the economic growth speed is reduced? This indicate that trade liberalization can have different effects on economic growth. This study is an attempt to assess symmetric or asymmetric positive and negative shocks of trade liberalization on economic growth. Study type is descriptive and based on relationships between variables. There are three indicators for trade liberalization: degree of openness of the economy (GDP / (exports + imports)), import share from GDP and the share of non-oil exports from GDP without oil. Equations are estimated method GMM with the condition the dependent variable CGMM or method moving moments conditional for the period 1376 to 2011. The results show trade liberalization and economic growth in Iran have positive and meaningful relation. Positive shocks increase economic growth and negative shocks will be less growth. Effects of negative shocks Is Meaningful larger from Positive shocks. So we can say effects of positive and negative shocks of trade liberalization on economic growth are asymmetric. With the abolition of trade restrictions, was achieved growth is destroyed with a higher severity. Hence should be tried at the accurate recognition and removing export restrictions in order to improve economic growth.