Trade liberalization And Economic Growth in Iran

The present research studies the relationship between commercial policies and economic growth in Iran that is based on Locuas (1988) model of endogenous growth. To avoid of spurious regression the Johansons model are used. The empirical results indicate that there is cointegration balance relation between function of economic growth and its determined elements such as capital, labor force, human power, real export sand tariff import rate.To reach the short time dynamic internal and external models, two model tools of error correction and (VDC s) 1 and (IRF s) 2 are used. The obtained results of (VECM) 3 show that there is causative function from variables in the right side of the model towards variable of local gross domestic production. In other word, it indicates innateness of depandant variable. From the other point of view, the documents resulted from (VDS s) state that real export variable tariff and human power have determind function in explaining (GNP) production. The (IRF s) result also indicates that there is a convergence in long balance relationship.