Iran accession to WTO on exports of petrochemical products Mahshahr

Abstract

WTO membership with regard to its regulations and objectives provides trade liberalization, exchange rate liberalization, support elimination, etc, Thus affect on industry competitiveness level. Accordingly Industries which have a high level of competitiveness will benefit of merger into the global economy and trade liberalization through the reduction in tariffs and more access to external markets. Since the main objective of Iran accession to the World Trade Organization is export promotion, investigation of the effects of presence in the international trade scene, on industries is essential till the government as the most important factors of economic development plan in order to further exploitation of the accession benefits and the elimination of problems and future obstacles from now on. In this regard, the aim of this study is to evaluate the effects of WTO accession of Iran on petrochemical Mahshar exports in the period 1997–2011, which the investigation using Auto Regressive Distributed Lag (ARDL) was performed. The hypothesis of the study is that by joining to the World Trade Organization, rate of exports will be increased. The results of short-run estimation investigation show that there is a long-run relationship between a dependent variable and independent variables. The results of long-run estimation investigation prove the hypothesis and error correction model estimation indicate that moving towards equilibrium in this sector occurs quickly.