The Impact of Trade Openness on the Labor Force Market, Case study of Iranian Textiles industries (A Static Panel Data Approach)

The main purpose of this paper is to investigate the impact of trade openness on Iranian Textiles industries over the period of 2009-1994. For this purpose in this study، the ratio of export to Production Value has been considered as a proxy for trade openness and the main model has been estimated by using a Static Panel Data (SPD) approach. The main findings of this study indicate that the trade openness has positive and significant effect on the employment and real wage in the Iranian Textiles industries. Moreover، the Production value and the real wage have positive and significant effect on the employment and real wage in the Iranian Textiles industries. Hence the main implication policy of this paper is that the policy makers should be adopts a good policy to expand the Iranian Textiles exports for improvement of employment and real wage in Iranian Textiles industries. Moreover، decreasing the unemployment and increasing the industrial exports are the second best policies.