The Welfare Effects of Iran's Accession to WTO in a DCGE Framework

In this paper, Using Dynamic Computable General Equilibrium (DCGE), the long run welfare effects of Iran's accession to the WTO has been analyzed. Doing so, at the first stage, the model is calibrated using the data base of 2011 Social Accounting Matrix (SAM). Next, the model is simulated for the Business as Usual (BaU) and rival scenarios. The recent scenario is developed on the basis of the market access commitments of 22 developing countries acceded to the WTO after the establishment of the organization in 1995. The results indicate that membership to the WTO; will increase the level of the household welfare. However, during the first decade after accession, the rate of increase in household welfare decreases. Increasing trend of household welfare initiates in the third decade after accession to the WTO.