The Distributive Effects of Joining the Global Economy in Iran: the Application of ARDL Model

In this paper the relationship between globalization and distribution of income in Iran with
using of time series data over 1977-2007 is investigated. For this purpose, we used Auto
Regressive Distributed Lag (ARDL) model and long-run and short-run relations between
involved variables in model are considered. The trade intensity index is used as measure of
globalization. Results indicated that, there is long-run relationship and co-integration between
involved variables and the Gini coefficient. Furthermore, accompanied by other variables
globalization, has a positive and significant effect on dependent variable. Value of error
correction coefficient is equal to -0.90 and statistically significant and suggests a high speed
of convergence to equilibrium.