The impact of trade linearization on investment in fishery industry if southern Iran.

Document Type : Research Paper

Authors

1 Professor Department of Agricultural Economics, Faculty of Agriculture, University of Tehran. Karaj. Tehran. Iran

2 A graduate of the Agricultural Economics Department- University of Tehran. Karaj. Iran

3 Expert of the Ministry of Agricultural Jihad, Tehran, Iran

10.22059/ijaedr.2023.351721.669193

Abstract

One of the most important economic goals of countries is to create the necessary conditions to increase economic growth and investment in economic infrastructures and achieve economic growth and sustainable development. Considering the importance of fisheries and aquaculture in recent years and the increasing trend of production from internal waters, in order to preserve resources and promote exports, it is necessary to use appropriate policies. Trade liberalization policies are one of the main mechanisms through which global market forces—competition, technology transfer, and technological innovation—create economic growth in developing countries. In this study, the impact of globalization on investment in fishery industry in south of Iran was examined using a vector auto regression model (VAR) and international trade liberations Index. The data for years 1370-98 obtained from public information centers. The results indicate that variables such as the first lag in investment, trade liberalization and added value directly and the first lag in the interest rate indirectly have a significant effect on the investment in southern fisheries industry. Also, the results of the instantaneous reaction function (IRF) indicate that fisheries investment in the future periods will have the greatest impact on added value, also the impulse on trade liberalization in the early periods caused a very small increase in investment and this effect was gradually adjusted in the later periods and is close to zero. Therefore, trade liberalization as an indicator of stimulating the production and trade of fisheries products can increase investment in fisheries and by making the necessary investments in production sectors with relative advantage and export sectors that have the power of global competition, the country's reliance on raw materials and wasting resources from being destroyed.

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Iranian Journal of Agricultural Economics and Development Research

Articles in Press, Accepted Manuscript
Available Online from 10 September 2023

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