The Islamic Republic of Iran has committed itself to substantial trade and market reform in its Third Five-Year Development Plan. It started out with nontariff barriers on all products, a dual exchange rate regime with the market rate more than four times the official rate, and domestic energy...

Trade does not stimulate growth in economies with excessive business and labor regulations. The authors examine the effect of openness on growth using cross-country regressions in both levels and changes. Results from the levels regressions imply that increased openness is associated with a...