The Distributive Effects of Joining the Global Economy in Iran: the Application of ARDL Model

Ali A. Naji Meidani, Maryam Zabihi

Abstract


In this paper the relationship between globalization and distribution of income in Iran with using of time series data over 1977-2007 is investigated. For this purpose, we used Auto Regressive Distributed Lag (ARDL) model and long-run and short-run relations between involved variables in model are considered. The trade intensity index is used as measure of globalization. Results indicated that, there is long-run relationship and co-integration between involved variables and the Gini coefficient. Furthermore, accompanied by other variables globalization, has a positive and significant effect on dependent variable. Value of error correction coefficient is equal to -0.90 and statistically significant and suggests a high speed of convergence to equilibrium.


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DOI: http://dx.doi.org/10.5296/ber.v2i2.2001

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