Computing Cost of Agricultural Bilateral Trade and Exploring the Effective Factors for Iran's Bilateral Trade with Developed and developing countries

Document Type : Research Article

Authors

• M. Jalerajabi
• R. Moghaddasi

Agricultural Economics Department, College of Agriculture, Tehran Science and Research Branch, Islamic Azad University, Tehran. Iran

10.22067/jead2.v1391i6.31918

Abstract

This study concerns with calculation of Iran's agricultural bilateral trade costs and major influential factors in Iran's Bilateral Trade with Developed and Developing countries. The main findings revealed that over the period 1995-2010 weighted average of agricultural trade cost with developing partners has declined by 44, and with developed partners has increased by 22 percent. This reduction, however, was greater for UAE and Brazil from developing countries and for Switzerland and Austria from developed countries. Based on the estimated regression, agricultural bilateral trade costs is positively related to distance, bilateral tariff rate and lag of agricultural bilateral trade costs, while island and adjacency variables have an opposite effect on Iran's agricultural bilateral trade costs. Considering the results, it is suggested that agricultural products should be destined based on trade costs, in order to increase the comparative power of export products.

Keywords

• Bilateral trade costs
• Agricultural products
• Panel Data

20.1001.1.20084722.1393.28.1.10.1

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