Analyzing the Welfare Effects of Trade Liberalization using Computable General Equilibrium Model Approach: The Case of Iran and Eurasia Economic Union

The analysis of the welfare effects of trade agreement of Iran and Eurasian Economic Union can be useful in economic decision making; therefore, the aim of this study is to investigate the welfare effects of reducing import tariffs between Iran and the member countries of the Eurasian Economic Union. For this purpose, Global Trade Analysis Project, version 10 of its databases and RunGTAP software package have been used. The results show that the complete elimination of import tariffs between Iran and members of the Eurasian Union will have significant welfare effects on the regions of Russia, Iran and Kazakhstan, and a small welfare on Armenia and Kyrgyzstan regions. Also, the separation of welfare effects in Iran indicates that the most positive impact on Iran's welfare is related to the reduction of Russia Tariffs for the goods imported from Iran and also the reduction of Iran’s Tariffs for the goods imported from Russia, and the most negative impact on Iran's welfare is related to the reduction of Tariffs for imported goods from Kazakhstan and the reduction of Tariffs for imported goods from Belarus.