The Impact of Trade Openness on Employment and Real Wage in Iranian Food and Beverage Industries (A Dynamic Panel Data Approach)

Document Type : Research Article

Authors

1 Economics Department, University of Shahrood

2 Management Department, University of Shahrood 3- Assistant Professor of Economics Department, University of Sistan and Bal

3 Economics Department, University of Sistan and Baloochestan

4 Department of Accounting of University of Shahrood

Abstract

The main purpose of this paper is to investigate the impact of trade openness on the Employment and the real Wage for the Iranian Food and Beverage Industries over the year 2007. For this purpose in this study, the ratio of export to Production Value has been considered as a proxy for trade openness and the main model has been estimated using a Dynamic Panel Data (DPD) approach. The main findings of this study indicate that the trade openness has positive and significant effect on the employment and the real wage in the Iranian Food and Beverage Industries. Moreover, output value and real wage have positive and significant effect on the employment. Hence, the main recommendation of this paper to policy makers is to expand the food and beverage exports for improvement of employment and real wage in the Iranian Food and Beverage Industries.

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History

  • Receive Date: 21 December 2013
  • Accept Date: 21 December 2013

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