ISSN: 1817-5880

Keywords : Trade Liberalization

The reality of foreign trade between Iran and developing countries and its future horizons

Najii Sari Faris

Gulf Economist, Volume 31, Issue 26, Pages 141-174

Iran is one of oil and natural gas exporter countries, and there are productive sectors contributes on the increase of level of income in Iran via diversification of Iran exports for various consuming and producing goods with developing countries. The Iranian government has sought to liberalize its foreign trade, this has led to improve the economy though eliminating quantitative restrictions on trade. As known, one of the factors that affect the Iranian economic structure is the export. However, this could lead to a change in the balance of payment and exchange rate balance of Iran as a developing country which reliance on import of export of different commodities and services. Therefore, this paper investigates the reality of foreign trade and its future horizon in Iran. However, the progress of Iranian foreign trade comes from big efforts devoted in successful economic development plans.
Besides, the international trade has a big significance which is different for country to another country, where it is considered a unique way to meet various needs of goods and services. Based on that, the economic power of a country is derived from its export, and the surplus of trade balance comes from diversified exports alongside with reducing level of import. However, the foreign trade of Iran with developing countries comes from oil export and other consuming and capital goods. In turn, it import some essential resources for to develop different economic sectors in order to mitigate its imports. Consequently, this study focuses the future horizons of Iranian foreign trade which depend on technological progress for various activities of economic sectors in Iran and what are the developing country partners of Iran? And also what are the kinds of export and import between Iran and other developing countries.