The Impact of the Iran-China Strategic Partnership Agreement on Facilitating Iran’s Foreign Trade: A Case Study of Selected Goods Exports
Reza Mohseni *
Department of Economics, Shahid Beheshti University, Tehran, Iran.
Zarir Negintagi
Department of Economics, Shahid Beheshti University, Tehran, Iran.
Aramchehr Darvishi
Department of Economics, Shahid Beheshti University, Tehran, Iran.
*Author to whom correspondence should be addressed.
Abstract
One of the main goals of developing countries, such as Iran is to achieve economic growth. According to theory, trade is an important determinant of economic growth and development. To increase economic trade volume, Iran has signed several agreements globally and one of the most important trading allies in recent years is China. This article seeks to assess how strategic partnership agreements in the Iran-China 25-year Cooperation Program and the progress of the Belt and Road Initiative influence the export of selected goods, specifically in the categories of iron, copper, steel, and alloy products. Based on the gravity model and the combined data approach from 2001 to 2021, the findings reveal that trade facilitation, gross domestic product, and China’s population have a significant positive influence on Iran’s foreign trade. Conversely, Iran’s population shows a negative and substantial influence on the country’s foreign trade.
Keywords: Strategic document, trade, gravity model, Iran, China, combined data