Trade liberalization and structural changes in the Iran economy budget

Document Type : Original Article

Authors

1 Ph.D. of Economics, Arak Branch, Islamic Azad University, Arak, Iran

2 استادیار گروه اقتصاد، دانشگاه شهید بهشتی، تهران، ایران

3 yeganehmj@gmail.com

4 Assistant Professor, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran

Abstract

This paper examines the effects of trade liberalization on the structure of government budget in Iran's economy system with emphasis on the fluctuations of government tax revenues from the implementation of trade liberalization policies. In this regard, by first estimating a macroeconomic model for the Iranian economy over a period of 1357_1395, choosing tariff reduction policy to achieve the goals of commercial liberalization of government, tariff reduction scenarios were thoroughly examined. The results show that in a system of simultaneous equations, given the small share of tariff revenues in the overall economic budget of Iran, the reduction in tariff revenues has not had any impact on the structure of the budget of Iran's economy, and trade liberalization with tariff reduction policies cannot affect government revenues.

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