Measuring the Impact of Tariff Rate Reduction on Automobiles Industry on Import and GNP for Iran: CGE Model

Considering tariff policy in trading has been especially interested for countries particularly developing ones in recent decays. The primary aim of tariff was to protect domestic industries as well as improve and equilibrate tariff payments, but today tariff is one of the most important tools in international trade policy with an influence on forms and volumes of a country's business with others. Considering economical effects of custom tariff in international trade, every country can benefit from this tool in accordance of their national goals. In the present study, the effect of tariff reduction on GNP, automobiles import and other economical sections was evaluated based on the computable general equilibrium CGE model for Iran. This model in planned based on the matrix of MCM data1380. The results suggest that automobile for other sections. Also, GNP and economic welfare were increased. In addition, tariff reduction caused automobile import reduction and import increase. Also, it caused an increase in GNP.