The Enforcement Targeted Subsidies Law and Its Impact on the Economic Structure of Production

The enforcement of targeted subsidies Law as the most sensitive economic reform program, has had very different and unknown effects on various economic dimensions and it continues. this research evaluate the effects of this law enforcement on the changes of the economic structure of production in Iran. To achieve this purpose in this research, used the time series data during the period of 1996-2017, and econometric models with DVRM approach. In this approach is examined the effects of the enforcement of targeted subsidies Law on the economic structure of production, and share of different sectors included agriculture, industry & mine, services and oil sectors in gross domestic product. The results is indicated that, before the enforcement of targeted subsidies Law (1996-2009), the average share of production of agriculture, industry & mine, services and oil sectors was about 12, 22, 52, and 14 percentage respectively. Basically on this results, after the enforcement of this law (2010-2017), the share of production from GDP in agriculture and industry & mine sectors has decreased to 5 and 0.2 percentage and for services and oil sectors has increased to 4.2 and 0.1 percentage respectively.The results of statistical tests rejected this changes and imply that the enforcement of this law, hasn’t had a significant effect on the economic structure of production. Obviously, the analysis of the long-term effects of the enforcement of this law on the economic structure of production requires to pass the time, and access to wider time series data.