Article in1st conference on development of petrochemicals downstream and supplementary industries moving from poverty reduction to global competitiveness
A Review of the impact of the liberation and growth of export in Iran’s industrial sector on economical growth of this sector, including an evaluation of globalization and liberation of Iran petrochemical industry
Dr. Ali Mohammadipour
Abstract:
One of the most important and effective revolutions of economy in the world during the last decade is making economic activities free and competitive. Economic progress in the area of economic reactions has encompassed all the world's production and commercial activities little by little. Following world's economic-politic revolutions the bilateral or multilateral commercial negotiations, GATT resolutions and subsequently WTO negotiations have been formed on the bases of industry, and Iran's economy especially in industry part has been affected by it. Because of the strategic role of industry in Iran's economy, in this article the process of Economical Liberation of this part has been studied through quadratic indices of Economical Liberation and by computation the respective models of economy. Economical Liberation -Led Growth Hypothesis (ie. the effect of Economical Liberation on its economic growth), has been examined which on the bases of its results, Iran's economic growth in industry is affected by its Economical Liberation and in fact the above mentioned theory is verified. Results of the Export-Led Growth Hypothesis (ie. the effect of export growth on economic growth) in industry confirms that hypothesis as well. Studying the Granger test in the area of determining the affecting process of industry's Economical Liberation and economic growth, altogether shows that there is a bilateral relationship between economic growth and Economical Liberation in Iran's industry part. Finally, the process of Economical Liberation in petrochemical industry as the country's most exemplary industry, has been investigated. Regarding the fact that petrochemical industry has assigned most of the country's non-petroleum exports and it seen considered as the Iran's industry pulse in the area of extending currency earning and the growth of economy, quadruplet indices of Economical Liberation for the petrochemical industry have been analyzed and by the Granger test it's been identified that there is a bilateral relationship for Iran's petrochemical industry. Considering the Economical Liberation strategy in petrochemical industry and the policy of price buoyancy of these products in government and council, the importance of the above mentioned relationship becomes more and more clear.
Key words: economic growth, export growth, indices for Economical Liberation (for industry and petrochemical industry of Iran) : SIT, DDT, IIT, LIT.