Liberalization of Trade and it's Effects on the Agriculture Sector of Iran

Document Type : Research Article

Authors

• M.R. Lotfalipour ¹
• Y. Azarinfar ²
• A. Dadras ²

¹ Contribution from Agricultural Economics Department, Ferdowsi University of Mashhad

² Contribution from Agricultural Economics Department, Shiraz University

10.22067/jead2.v1388i2.2534

Abstract

Abstract
This study deals with the trade liberalization and it's subsequences on the agricultural sector of Iran during the years of 1967-2007. To this end on the basis of theories, the exports, imports, supply and demand functions of agricultural sector have been determined, and are regressed by the Vector Auto Regressive (VAR) methodology. Also to recognize the effects of different variables on the above mentioned functions, the methodology of variance detection is used. The results show that the trade liberalization have only an insignificant effect on the demand of agricultural products, but it has a meaningful impacts on the agricultural supply. While the liberalization variables does not have a meaningful impacts on the. imports of agricultural products, the exports of agricultural products are followed by the liberalization indices. This is due to the huge role of the government on the import of the agricultural products.

JEL: F 14, F 17, Q 17

Key words: Trade liberalization, agricultural products, export, import, Iran

20.1001.1.20084722.1388.23.2.8.6

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