Estimation of Iran's Multiregional Trade by Charm Method and Gravity Model

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Shadabfar Elham; BAZAZAN FATEMEH

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Journal: IRANIAN JOURNAL OF TRADE STUDIES Year:2019 | Volume:23 | Issue:91 Page(s): 31-64

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Title

Estimation of Iran's Multiregional Trade by Charm Method and Gravity Model

Author(s)

Shadabfar Elham | BAZAZAN FATEMEH | Issue Writer Certificate

Keywords

Multiregional TradeQ1

Charm MethodQ1

Gravity ModelQ1

Interaction EffectQ1

Economic SectorsQ2

Abstract

Multiregional economic models that present a set of regional economies in a continuous manner and show cross-regional interactions require calculating the export of each region to other regions and import of each region from other regions. In the process of survey inter-regional relations and creating multi-regional input-output, the missing link is the estimation of inter-regional trade. In this study Iran was divided into nine regions, and using the CHARM method and Gravity model with the aim of estimation of regional and inter-regional trade, the total volume of trade between the two regions and the trade of each part of the region was calculated with other regions. Accordingly, the total volume of Iran’ s interregional trade is 858. 133 billion rials. The interregional trade about regions that are geographically located in the center of the country are higher than the non-central regions of the country, such that the highest volume of interregional trade is related to the Alborz Jonubi region with the volume of 173, 637 billion Rials and the smallest volume of interregional trade related to the Azarbayjan area with the volume of 68. 392 billion Rials. The largest volume of interregional trade, in the Costal-North area is in the agricultural sector, the Azerbaijan region is in the industrial sector, the Zagros region is in the agricultural sector, the Khuzestan region is in the mining sector, the Fars region is in the industrial sector, the Alborz region is in the service sector, the Central region is in the Industry sector, the South-East region is in the industry sector and in the Khorasan region is in the Service sector. In addition, the international trade of the regions was estimated by sector, and with combining the results of the regional and international trade estimates, policy recommendations were presented for each region.

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APA: Copy

Shadabfar, Elham, & BAZAZAN, FATEMEH. (2019). Estimation of Iran's Multiregional Trade by Charm Method and Gravity Model. IRANIAN JOURNAL OF TRADE STUDIES (IJTS), 23(91 ), 31-64. SID. https://sid.ir/paper/7334/en

Vancouver: Copy

Shadabfar Elham, BAZAZAN FATEMEH. Estimation of Iran's Multiregional Trade by Charm Method and Gravity Model. IRANIAN JOURNAL OF TRADE STUDIES (IJTS)[Internet]. 2019;23(91 ):31-64. Available from: https://sid.ir/paper/7334/en

IEEE: Copy

Elham Shadabfar, and FATEMEH BAZAZAN, “Estimation of Iran's Multiregional Trade by Charm Method and Gravity Model,” IRANIAN JOURNAL OF TRADE STUDIES (IJTS), vol. 23, no. 91 , pp. 31–64, 2019, [Online]. Available: https://sid.ir/paper/7334/en

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