The effects of reforming foreign trade strategies on full employment (evidence from Iran)

Foreign trade and its relationship with economic growth is one of the most controversial topics, especially in the selection of development strategies in developing countries, and there is still no agreement among economists on how trade policies and full employment can be related. Also, the trade liberalization program as a process of reforming foreign trade policies is the basis for international competitiveness and the participation of countries in economic activities. Of course, in the course of this program, activities that do not have a good competitive ability will lose the possibility to continue working. For this purpose, the welfare effects of foreign trade policy reform on full employment in the period 1380 to 1397 through the method of autoregressive model with interruption A distribution has been investigated. The results showed that trade liberalization has a significant effect on employment by applying the policies of eliminating or reducing tariffs and increasing imports in the short term.