The Study of Welfare Effects of Import Variety in Iran

Khalili Asl, Maryam; Rasekhi, Saeed; Shohhoseini, Somayeh

doi:10.30473/indeco.2019.7012

Document Type : applicative

Authors

¹ Professor of Economics, Mazandaran University, Mazandaran, Babolsar

² Assistant Professore of Economics, Allameh Tabataba'i University, Tehran, Iran

https://doi.org/10.30473/indeco.2019.7012

Abstract

According to Krugman, product variety has played a central role in models of trade and growth. This study investigates the welfare gains due to Iran import of new varieties from 2014 to 2018 with the use of Feenstra (1994) and Broda & Weinstein (2006) methods. The amount of product variety is measured by product-level import data according to 2-digit code Harmonized System classification. Empirical results show that increase (decrease) in imported varieties would lead to increase (decrease) in consumers welfare. With the implementation of extensive sanctions and reducing the variety of Iran's imports in 2014 and 2015, the gains of variety of imports will decrease. In 2016 and 2017, with the implementation of Barjam and the elimination of effective sanctions, the Variety of imported goods to Iran and as a result the gains of this variety will increase. In 2018, with the unilateral withdrawal of the United States from Barjam and the beginning of a new round of sanctions against Iran, the gains of the variety of imported goods are reduced and as a result, the welfare of consumers is reduced. Positive gains in 2017 confirm that between 2016 to 2017 due to the variety of imported products, the welfare of consumers increased by 0.1 percent of GDP.

Keywords

20.1001.1.24767077.1398.3.9.1.8

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فصلنامه پژوهش های اقتصاد صنعتی

The Study of Welfare Effects of Import Variety in Iran

References

References

Volume 3, Issue 9
December 2019
Pages 7-18

The Study of Welfare Effects of Import Variety in Iran

References

References

Volume 3, Issue 9December 2019Pages 7-18

Volume 3, Issue 9
December 2019
Pages 7-18