Assessment of Export Market Diversification Impacts On IRAN’s GDP And Total Export: (The Toda Yamamoto Causality Tests)

This study aims to investigate the relationships among export market diversification with both total export and Gross Domestic Product (GDP) in IRAN economy.After handling the selected variables mentioned during 1991 -2011, Aunivariate regression model taking considered. With the technique of seemingly unrelated regressions (SUR), Causal relationships between the variables considered by Toda Yamamoto test. The results indicate statistically significant bidirectional relationships between both GDP and total exports and export market diversification with GDP existing. On the other hand, a unidirectional causality from export to the export market diversification is seen. Therefore, expected that by more increasing economic integration with the world economy and expand the diversity of Iran's export markets, potential GDP growth and increased exports will increase along with it.

Diversification of export markets, Gross Domestic Product (GDP), Export, Vector regression model, Causality test of Toda Yamamoto.