Vertical Intra –Industry Trade in the Iranian Trade
Subject Areas : Futurology
1 - ندارد
Keywords: Standard International Trade, World Trade Organization, Export of Industrial Goods,
Abstract :
This article aims to answer the question that whether any evidence of intra – industry , or two – way trade can be found in the Iranian trade , and to ascertain that such supposed of intra – industry trade is vertical or horizontal . Having considered the question , then we explore the possibility that whether the degree of industrialization in Iran permits the country to concern itself with issues such as free trade , reduction of tariffs , and joining WTO .Then , we ask how optimistic we can be regarding the increase of manufactured exports? Using the IIT indices for Iran’s exports and imports , with three – digit in SITC ( Standard International Trade Classification ) ,we attempt to offer an analysis indicating the existence and the type of intra – industry trade in Iran . The results of this analysis may be used to make more accurate and appropriate decisions on industrialization , economic growth , international trade , foreign exchange policies , regional and international cooperation , and finally on exact evaluation of joining WTO. Our analysis indicates that in 1375 and 1379 (the Iranian calendar ), a bout 91 percent of Iran’s of intra – industry trade were vertical , demonstrating demand diversity . The analytical indication of this index , which shows that most Iran’s of intra – industry trade as being vertical , points to the existence of low quality commodities in Iran’s foreign trade . Thus it is stipulated that it is the consumption of low – income households in developing countries , which constitute Iran’s main trade counterparts , that drives the production . If the export to the developed is taken into account , then our assumption holds that the consumption of these commodities would occur in low – income households . Then the question arises as to how Iran , a country with low – quality exports desiring to consume high – quality goods , can manage its international trade in the context of world trade , which pushes for the reduction or omission of tariffs . This question become more acute when one considers Iran as intending to reduce its dependence on the oil revenues. Thus , the necessity becomes inevitable for reformulating the aims of reducing dependence on oil and managing competition on exportation to the world markets
