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

مجله اقتصاد و توسعه کشاورزی

Article 9, Volume 27, Issue 4, January 2014, Pages 351-360   

Document Type: Research Article

DOI: 10.22067/jead2.v1391i5.29922

Authors

A. Dehghani^{* 1}; B. Ashrafi²; M.N. Shahikitash³; M. Ameri⁴

¹Economics Department, University of Shahrood

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

³Economics Department, University of Sistan and Baloochestan

⁴Department 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.

Keywords

Keywords: Trade Openness; employment; Real Wage; Dynamic Panel Data Approach; Iranian Food and Beverage Industries