Determinants of Iran’s exports: A Gravity Model Analysis under Panel Data

摘要

This paper aims at investigating the important factors affecting Iran’s export trade to major 5 trading countries from 2000 to 2012. The analysis employs a gravity model with some modifications using the panel data estimation technique. The results show that the export trade of Iran has positive relationship with the country’s GDP and importing countries’ GDP. Furthermore, it has a negative relationship with distance from Iran to trading partners. Border effects and exchange rate play a significant role in promoting exports of Iran. So these factors have contributed to explaining the success in exports of Iran over the years of past decade.