Analysis of Home Market Effect: with Emphasis on Foreign Trade behavior Iran’s Manufacturing Sector
Subject Areas : Labor and Demographic Economics
ali falahati
1
(
department of economic.razi university.kermanshah
)
mojtaba almasi
2
(
economics, Faculty of Social Sciences, Razi University, Kermanshah , Iran
)
yahya goli
3
(
economics. Faculty of Social Sciences, Razi University, Iran
)
Keywords: F14, JEL Classification: F10, F17. Keywords: Industry Sector, ISIC Classification, New Trade Theory (NTT), Home Market Effect,
Abstract :
Abstract The main purpose of this paper is to analyze the home market effect hypothesis on Iran's industry. Accordingly, International Standard Industry Classification (ISIC) two‐digit data of the Iranian industry sector and five major trading partners from 2001 to 2014 and the general equilibrium model with the assumption of incomplete competition have been used. The estimation results showed that the home market effect on the total industry has been confirmed. The results also showed that home market effect was positive in 17 out of 21 studied sectors. Therefore, the expansion of domestic demand in various industrial sectors with protectionism of competitiveness along with the strengthening of intra-industry trade with similar demand structure countries can provide a platform for better penetration in international markets and lead to sustainable growth of industrial exports in the country.
منابع
- تشکینی، احمد، سوری، امیررضا(1391). تحلیل عوامل مؤثر بر تجارت درون صنعتی بخش خدمات ایران با بلوک‌های منطقه‌ای، فصلنامه تحقیقات مدلسازی اقتصادی، 3 (10): 153-177.
- راسخی، سعید (1386). عوامل تعیین‌کننده خاص کشوری انواع تجارت درون صنعت کشورهای در حال توسعه با تأکید بر ایران، پژوهشنامه بازرگانی، 12 (45):221-244.
- رجبی، ژاله، مقدسی، رضا، اسلامی، محمدرضا (1395). بررسی اثر سیاستگذاری دوجانبه ایران (مقایسه تجارت کشورهای توسعهیافته و درحال‌توسعه)، سیاستگذاری اقتصادی، 9 (17):1-27.
- متفکر آزاد، محمدعلی، غالبی، صادق، جهانگیری، خلیل (1390). بررسی مزیت نسبی و اولویت‌بندی بازارهای هدف صادرات صنایع پوست و چرم ایران، فصلنامه پژوهشنامه علوم اقتصادی، 6 (11): 149-168.
- ناظمان، حمید، موحدمنش، صادق علی (1390). بررسی ارتباط تجارت درون صنعت و مزیت نسبی در اقتصاد ایران، فصلنامه پژوهشنامه بازرگانی، 15 (59): 1-24.
- نونژاد، مسعود (1387). بررسی مزیت نسبی در زیر بخشهای صنایع کانی فلزی و غیرفلزی (فلزات اساسی) ایران و جایگاه جهانی آن، فصلنامه پژوهشنامه اقتصادی، 8 (3): 105-124.
- یزدان‌پرست، زهرا، مصطفی کریم زاده، احمد سیفی، فلاحی،محمدعلی (1394). آزمون تجربی نظریه لیندر در الگوی تجارت خارجی ایران، فصلنامه پژوهشها و سیاستهای اقتصادی، 23 (76): 167-186.
- Amiti, M. (1998). Inter-industry trade in manufactures: Does country size matter? Journal of International Economics, 44(2): 231-255.
- Bergstrand, J. H. (1989). The generalized gravity equation, monopolistic competition, and the factor-proportions theory in international trade. The review of economics and statistics: 143-153.
- Costinot, A., Donaldson, D., Kyle, M., & Williams, H. (2016). The more we die, the more we sell? A simple test of the home-market effect (No. w22538). National Bureau of Economic Research.
- Crozet, M., & Trionfetti, F. (2008). Trade costs and the home market effect. Journal of International Economics, 76(2): 309-321.
- Davis, D. R., & Weinstein, D. E. (1999). Economic geography and regional production structure: an empirical investigation. European economic review, 43(2): 379-407.
- Desmet, K., & Parente, S. L. (2010). Bigger is better: market size, demand elasticity, and innovation. International Economic Review, 51(2): 319-333.
- Hanson, G. H., & Xiang, C. (2004). The Home-Market Effect and Bilateral Trade Patterns. American Economic Review, 94(4):1108-1129.
- Head, K., & Mayer, T. (2004). The empirics of agglomeration and trade. In Handbook of regional and urban economics (Vol. 4, pp. 2609-2669). Elsevier.
- Head, K., Mayer, T., & Ries, J. (2002). On the pervasiveness of home market effects. Economica, 69(275): 371-390.
- Head, K., & Ries, J. (2001). Increasing returns versus national product differentiation as an explanation for the pattern of US-Canada trade. American Economic Review: 858-876.
- Johdo, W. (2013). Asymmetric transportation costs and the home market effect. Theoretical Economics Letters, 3(02): 81.
- Krugman, Paul R. (1980) “Scale Economies, Product Differentiation, and the Pattern of Trade, American Economic Review, 70: 950-959.
- Krugman, P. R. (1985). Increasing returns and the theory of international trade
- Feenstra, R. C., Markusen, J. A., & Rose, A. K. (1998). Understanding the home market effect and the gravity equation: The role of differentiating goods (No. w6804). National bureau of economic research.
- Huang, Y. Y., Lee, C. T., & Huang, D. S. (2014). Home market effects in the Chamberlinian–Ricardian world. Bulletin of Economic Research, 66(S1).
- Li, H., Qi, F., & Zhang, S. (2012). Home Market Effects of Foreign Trade in China's Manufacturing Sector: Analysis Using International Standard Industry Classification Panel Data. China & World Economy, 20(3): 1-15.
- Linder, S.B. (1961), An essay on trade and transformation (pp. 82-109). Stockholm: Almqvist & Wiksell.
- Martín, T. (2016). Regulatory Entry Barriers, Rent-Shifting and the Home Market Effect, Review of international Economics, 25(1): 76-97.
- Matsuyama, K. (2017). Geographical advantage: Home market effect in a multi-region world. Research in Economics, 71(4): 740-758.
- Pires, A. J. G. (2013). Home market effects with endogenous costs of production. Journal of Urban Economics, 74: 47-58.
- Schwab, K., & Sala -i-Martin, X. (2016). The Global Competitiveness Report 2015–2016, Geneva. In The World Economic Forum (Vol. 403).
- Sichei, M. M., Erero, J. L., & Gebreselasie, T. (2008). An augmented gravity model of South Africa's exports of motor vehicles, parts and accessories: economics. South African Journal of Economic and Management Sciences, 11(4):494-510.
- Weder, R. (2003). Comparative home-market advantage: an empirical analysis of British and American exports. Review of World Economics/Welt wirtschaftliches Archiv, 220-247.
_||_