Relationship between the Economic and Political Development and the International Trade Policies

Proceedings of The 2nd International Conference on Advanced Research in Management, Economics and Accounting

Year: 2022

DOI:

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Relationship between the Economic and Political Development and the International Trade Policies

Pegah Mahdavi,Saeid Rasekhi,Ali Karimi Maleh

 

ABSTRACT: 

In the development literature, the emphasis is always on the international trade policies. In the global experience, groups of middle-income developing countries are successful in the world trade, and a larger number of developing countries have been excluded. This paper uses the simultaneous equation system to examine the relationship between economic and political development with international trade policies during the period 2006_2014 in two groups of selected developing and developed countries. The results of this research show a direct and positive impact of political development on the international trade liberalization policies and the effect of this this policy on economic development. Therefore, based on the present evidence, sustainable development can be created by establishing appropriate  platforms and solidarity between political and economic development with international trade.

keywords: economic development; political development; trade policies; system of simultaneous equations.