The Relation between Foreign Trade and Economic Growth: A Causality Analysis on the Case Iran

Bayram Ata () and Tevfik Mesut Eren
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Bayram Ata: İstanbul Aydın University
Tevfik Mesut Eren: Marmara University

Bulletin of Economic Theory and Analysis, 2017, vol. 2, issue 4, 329-346

Abstract: In this paper, we have investigated briefly the economic structure of Iran and assessed the effects of foreign trade as one of the most important factor on economic development. We used the Granger causality analysis to examine whether Iran’s foreign trade is related with its economic growth. The results show that both import and export are granger cause of economic growth. To conclude we can say that the results prove a certain causality between Iran’s foreign trade and its economic development.

Keywords: Economic Growth; Iran; Granger Causality Test; Import; Export; Foreign Trade (search for similar items in EconPapers)
JEL-codes: C10 F10 O40 (search for similar items in EconPapers)
Date: 2017
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