Trade Liberalization and Economic Growth in Iranian Economy

INTRODUCTION In the era of globalization today, trade liberalization is one of the most serious policy issues for governments around the world, especially developing countries. Trade liberalization is thought to promote economic growth and development through specialization and technological progress (Hoque and Yusop, 2010). In the latter part of the 20th century, the role of trade policy in economic development was an important discussion in development literature.

Trade liberalization reexamined empirical evidence of the relationship between economic integration and economic growth. Firstly, in the 1990s there were several open indicators and schedules of trade liberalization in various countries. Second, Sachs and Warner (1995) discussed recent research on the relationship between openness of trade and economic growth in the 1990s and discussed recent criticism of its measurement and estimation framework. In particular, the latest version of its bipartite trade policy openness indicator did not increase significantly during the 1990's growth regression. Third, and most importantly, it is a new evidence of the open time path of economic growth, capital investment, and liberalization of trade policy. In stark contrast to the results, we found that liberalization has a strong positive impact on domestic growth, openness and investment rate. There are some examples of trade liberalization

Liberalization of openness and trade is now regarded as an important element of national economic growth and the well being of the economy as a whole. Furthermore, since the middle of the 20th century they have been considered to be at the center of significant growth in industrialized countries. But the ongoing existence of extensive reality and extreme poverty represents the greatest failure of the modern world economy and the biggest challenge to face when entering the 21st century. The debate that trade liberalization will promote growth and poverty reduction for large-scale trade liberalization over the past 25 years will pose some doubt and the world economy should be able to get out of poverty. Like Asia, the world's poorest people account for nearly two-thirds despite significant economic growth.