Analyzing the Impacts of Trade Liberalization and Foreign Capital Inflow on the Iranian Economy: Approach of Computable General Equilibrium

Regarding to nullifying international sanctions including trade sanctions, it is expected that Iranian economy attract a huge flow of foreign capital. Moreover, because of join into the World Trade Organization for Iran, it is necessary to study the impacts of capital inflow and tariff reduction as a measure of liberalization on the Iranian economy. Therefore, this paper aims to investigate the impacts of tariff reduction and foreign capital inflow on the economy of Iran.; Using a Computable General Equilibrium model and 2011 Micro Consistent Matrix, the results show that foreign capital inflow will increase gross domestic production, consumption, capital formation, export and import, while it will decrease government expenditure and consumer price index. Furthermore, tariff reduction will rise gross domestic production, consumption