Study the Effect of Meat Market Liberalization on Rural Welfare in Iran

Subject Areas : International Journal of Agricultural Science and Research

A. Haghighatnezhad-Shirazi ¹ , S. Yazdani ² , R. Moghaddasi ³

1 - nadarad
2 - nadarad
3 - nadarad

Received: 2011-05-04 Accepted : 2011-07-14 Published : 2012-05-26

Keywords: Iran, Trade Liberalization, Rural Area, welfare, Partial equilibrium, Meat,

Abstract :

This study aims to study the effect of elimination of government intervention and liberalizationin meat market in rural area in Iran on consumer welfare with time series data for 1981-2007.An alternative partial equilibrium model was developed to examine the welfare effect of meattrade liberalization. Result show that on producer side, government budget (subsidy onproduction), foreign exchange and producer welfare are increase, on consumer side,government budget (subsidy expenditure) and foreign exchange are decrease; also the effect oftrade liberalization on rural consumer welfare is positive and increase under openaccess(without considering consumer in urban area).