Inflation and Trade Freedom : An Empirical Analysis

  title={Inflation and Trade Freedom : An Empirical Analysis},
  author={Mahmoud Mahmoudzadeh and Leila Shadabi},
Trade freedom means omitting tariff barrier and non-tariff barrier. In this paper, the effect of trade freedom on inflation in 15 countries of Middle East and North Africa in the period 1996-2009 using GMM is investigated. The results show that trade freedom has had meager and significant effect on the inflation rate of these countries. Hence, the conclusion is that trade freedom has small inflation expense. JEL classification: F10, E31, C23