Scrutiny of effect and relationship of increasing the rate of trade on economic development
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 6, Issue 2
Abstract
The main aim of this study is to establish relationship between increasing the rate of trade and economic development. In the fact, it is a priori difficult to establish relationship between increasing the rate of trade and economic development. This is why we have tried to do so empirically using Granger causality test. The results indicate that apart from the first case study organization and at 10% level trade increasing doesn’t cause economic development in the all case study organizations. Conversely, economic development does not cause of increasing the rate of trade. These results can be explained essentially by the fact that all the conditions are not yet assembled in the Iranian organizations so that increasing the rate of trade can interact with economic development. Indeed, increasing the rate of trade is usually more profitable to all case study organizations that record quite high growth rates and whose industries have already reached maturity or are closed to maturity.
Authors and Affiliations
Mojtaba Karimi| Senior Expert of Technology Commercialization and Licensing, Karimimo@irip.ir, Javad Khamisabadi| Member of Young Researchers and Elite Club, Islamic Azad University, Tehran, Iran, email: Javad_khamisabadi@yahoo.com
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