Investigating the Impact of Preferential Trade Agreement Between Iran and Turkey on Production of Different Ecnomic Sectors in Iran: Based Dynamic GTAP

Nasrin Farzi (), MohammadReza Salmanibishak () and Mehdi Nejati ()
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Nasrin Farzi: PhD student in International Economics, University of Tabriz
MohammadReza Salmanibishak: Assistant Professor University of Tabriz
Mehdi Nejati: Assistant Professor University of Kerman

Quarterly Journal of Applied Theories of Economics, 2021, vol. 8, issue 2, 129-152

Abstract: Reducing or eliminating tariff rates on imported and exported goods is one of the most important issues that can act as a stimulus between the production, employment and export sectors. Preferential trade agreement between Iran and Turkey will facilitate trade relations between the two countries in order to encourage domestic producers and increase their motivation Compared to other competitors to improve the quality of goods and increase production in various sectors to attract domestic and foreign markets. The present study intends to investigate the trade effects of the economic agreement between Iran and Turkey on the production, export and import of the agricultural and industrial sectors using a dynamic GTAP (Global Trade Analysis Project) model for the period 2011-2025. As an application of the model, a preferential trade scenario for Iran is simulated in accordance with the agreement. The results of the agreement show that although the individual components of the agreement will reduce production in a few cases, in general, almost all sectors will increase production in 2025.

Keywords: Preferential Trade Agreement; Production; Global Trade Analysis Project; Economic Sectors (search for similar items in EconPapers)
JEL-codes: D20 F11 F15 R11 (search for similar items in EconPapers)
Date: 2021
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