The impact of trade and financial liberalization on export agricultural sector in Iran
الموضوعات :
Seyed Reza Pournaghi
1
,
Farid Askarii
2
,
Ahmad Jafari Samimi
3
,
Farzaneh khalili
4
1 - Monetary Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran
2 - Department of Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran
3 - Department of Economics, Mazandaran University, Mazandaran, Iran,
4 - Department of Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran
تاريخ الإرسال : 08 الأحد , ذو القعدة, 1444
تاريخ التأكيد : 10 السبت , صفر, 1445
تاريخ الإصدار : 17 الجمعة , جمادى الأولى, 1445
الکلمات المفتاحية:
trade liberalization,
Structural Change,
Financial Liberalization,
Agriculture Growth,
ملخص المقالة :
The increase the export of agricultural products plays a significant role in increasing the production capacity of this sector and the development of agriculture sector and rural areas. So that by increasing the income of the villagers, it prevents them from migrating to the city and creates the basis for investment in production. Therefore, in this study, the role of financial liberalization and trade liberalization as the most important policies of structural changes on the export of Iran's agricultural sector was investigated. The estimation of the Autoregressive Distributed Lag (ARDL) related to the data of 1995 to 2020 showed that among the variables, arable land per worker, Domestic credit to private sector by banks and stocks traded turnover ratio of domestic shares respectively with coefficients of 5.94, 4.51 and 3.25 have the greatest effect on the export. The total effect of each of the policies of financial and trade liberalization is 2.81 and -1.5, respectively. In other words, the simultaneous implementation of structural change policies will increase the export of the agricultural sector, so it is recommended to measure their effects on different sectors of the economy before implementing structural change policies and then implement them.
المصادر:
Abbasi, F., Moghdisi, R. & Kayanirad, A. (2021). Investigating the effect of trade liberalization on Iran's agricultural growth and trade using the Markov-switching model, Agricultural Economics and Development, 29(116), 53-87. (In Persian)
Alnafissa, M., Abdeen, M., Bashir, K., Alamri, Y., Alagsam, F. & Al- Duwais, A. (2022). Impact of Gulf Cooperation Countries' foreign direct investment on Sudan's agricultural exports. Sustainability, 14(3542).
Azizi, V., Mehrgan, N. and Yavari, G. (2015). The effects of trade liberalization on the trade balance of the agricultural sector in Iran, Agricultural Economy and Development, 23(92), 168-141. (In Persian)
Barro, R. j., Mankiw, NG & Sala- i -Martin, X. (1995). Capital Mobility in Neoclassical Models of Growth, American Economic Review, 85(1), 103-115.
Chang, R., Kaltani, L. & Loayza, N. (2009). Openness can be good for growth, the role of policy complementarities, Journal of Development Economics, 90, 33-49.
Das, A. & Paul, B. (2011). Openness and growth in emerging Asian economies, Evidence from GMM estimations of a dynamic panel, Economics Bulletin, 31(3), 2219-2228.
Daumal. M & Özyurt. (2011). The Impact of International Trade Flows on Economic Growth in Brazilian States, Journal of Review of Economics and Institutions, 2(1).
Dornbush, R. & Reynoso, A. (1989). Financial Factors in Economic Development, American Economic Review, 79(2), 204-209.
Edwards, S. (2001). Capital Flow and Economic Performance, Are Emerging Economies Different, NBER Working Paper, No. 8076.
Eichengreen, B. & Leblanc, D. (2003). Capital Account Liberalization and growth was Mr. Mahathir Right, International Journal of finance and Economics, 8(3), 205-224.
Eris, M. & Ulaman, B. (2013). Trade openness and economic growth, Bayesian model averaging estimate of cross-country growth regressions, Economic Modeling, 33, 867-883.
Falvey, RE (1981). Commercial policy and intra-industry trade. Journal of international economics, 11(4), 495-511.
Fry, MJ (1978). Money and Capital or Financial Deepening in Economic Development. Journal of Money, Credit, and Banking, 10 (4), 464-475.
Gorji, A. & Alipourian, M. (2016). Analysis of the effect of trade liberalization on the economic growth of OPEC member countries, Research Journal of Commerce, 10(40), 187-203.
Gries, T., Kraft, M., & Meierrieks, D. (2009). Linkages between Financial Deepening, Trade Openness, and Economic Development, Causality Evidence from Sub-Saharan Africa, World Development, 37(12), 1849-1860.
Hassan, EH and Amal AE (2021). Impact of Foreign Direct Investment on Agricultural Exports in Arab countries, an empirical analysis, Indian Journal of Economics and Business, 20(4), 335-347.
Heydarabadipour, S. Mehrabi Beshrayadi, h. & Alam Zadeh, M. (2014). The impact of financial development and trade liberalization on the growth of the agricultural sector, 9th Biennial Agricultural Economics Conference, Shahid Bahonar University, Kerman. (In Persian)
Hoang HK, and Meyers WH. (2015). Price stabilization and impacts of trade liberalization in the Southeast Asian rice market. Food Policy, 57(30), 26-39.
Jafari Samimi, A., Farhang, S., Rostamzadeh, M. & Mohammadzadeh, M. (2009). The effect of financial development and trade liberalization on economic growth in Iran, Sustainable Development and Growth Research, 9(4), 1-21. (In Persian)
Jin, J. (2006). Can openness be an engine of sustained high growth rates and inflation Evidence from Japan and Korea, International Review of Economics and Finance, 15, 228-240.
Khalilzadeh, J., Heydari, H., Afekjo, H. & Mohseni Zenuri, J. (2014). Investigating the impact of membership in the World Trade Organization on Iran's agricultural sector with a time series approach, Regional Economy and Development, 20(7), 194-217. (In Persian)
Kkhosravi, M. (2022). Investigating the role of agricultural development in sustainable rural development. Agricultural Marketing and Commercialization Journal, 6(1), 181-193.
Kaykhosravi, M. (2018). Investigating the Impact of Agricultural Joint Stock Companies and Production Cooperatives on Rural Development in Kamyaran. Agricultural Marketing and Commercialization Journal, 2(2), 18-27.
Knutsson, B. (2009). The Intellectual History of Development, Towards a Widening Potential Repertoire, Perspectives, no. 13.
Lopes, C. (1994). Enough is enough for an Alternative Diagnosis of the African Crisis. Discussion Paper 5. Uppsala, the Scandinavian Institute of African Studies.
Mahdavi, A. Taheri Hanjani, M. & Shams Al Ahrar, F. (2017). The effect of trade liberalization on the economic growth of selected countries in the Middle East with emphasis on endogenous growth models, Applied Economics, 7 (20), 10-22. (In Persian)
Mansouri, S., Samadi, AH, & Torkamani, J. (2013). Financial Repression and Agricultural Growth, the Case of Islamic Republic of Iran (1962-2007). Quarterly Journal of the Economic Research (Sustainable Growth and Development), 13(2).
McKinnon, R. (1973). Money and Capital in Economic Development. Washington, DC, Brookings Institution.
Mehrara M. & Rezaei. A. (2010). Quality of Institutions and the Effects of Trade Liberalization in Selected Developing Countries, Business Research, 14(56). (In Persian)
Melitz, MJ (2003). The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity, Econometrica, 71 (6), 1695-1725.
Menyah, K., Nazlioglu, S. & Wolde - Rufael, Y. (2014). Financial development, trade openness and economic growth in African countries, new insights from a panel causality approach, Economic Modeling, 37, 386-394.
Mohammadi, H. & Shahraki, A. (2016). Investigating the effect of inflation on investment efficiency in Iran's agricultural sector, 10th Biennial Conference on Agricultural Economics of Iran, Shahid Bahonar University of Kerman, and Kerman. (In Persian)
Mounir, B. (2014). The relationship between trade, FDI and economic growth in Tunisia, An application of the autoregressive distributed lag model, Economic Systems, 461, 1-19.
Nabiyan, S., Esfandiari, S. & Sepahvand, A. (2017). Investigating the effect of macroeconomic variables on Tobin's Q (investment motivation) of Iran's agricultural sector, Agricultural Economics Research, 9 (3), 17-32. (In Persian)
Nikumram, H., Rahnema Rudpashti, F. & Jokar Teng Karmi, A. (2013). Explaining the role of foreign trade and innovation through the acquisition of foreign technology on investment and economic growth in Iran, Financial knowledge of securities analysis, 6(20), 91-108. (In Persian)
Nkoro, E. & Uko, AK (2016). Autoregressive Distributed Lag (ARDL) Cointegration Technique, Application and Interpretation, Journal of Statistical and Econometric Methods, 5 (4), 63-91.
Nunjad, M. & Majlesi, Sh. (2011). The effect of trade liberalization on the industrial and agricultural sectors of MENA countries, Economic Studies, 2(1), 109-128. (In Persian)
Pesaran, MH, Yongcheol, Sh. & Richard, JS (2001). Bounds testing approaches to the analysis of
level relationships. Journal of Applied Econometrics 16, 289–326.
Prasad, E. (2003). Effect of Financial Globalization on Developing Countries, some Empirical Evidence, Economic and Political Weekly, 4319-4330.
Ravand, L., Durandish, A. and Sabohi, M. (2018). The effect of trade liberalization on rice production, consumption and trade, Agricultural Economics and Development, 32(3), 212-199. (In Persian)
Romer, D. (1993). Openness and inflation, theory and evidence, Quarterly Journal of Economics, 108 (4), 870-903.
Salem, b. (2012). Investigating the production and commercial trend of agriculture in Iran and selected countries with regard to the trade liberalization of the last decade, Economic Journal, Monthly Review of Generations and Economic Policies, 4 and 5, 39-60. (In Persian)
Shahbaz, M. (2012). Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan, Economic Modeling, 29, 2325-2339.
Shaw, E. (1973). Financial Deepening in Economic Development. New York, Oxford University Press.
Shir Ali, A. (2020). Structural adjustment policies of government construction and indicators of economic misery in Iran, Political Sociology of Iran, 3(3), 189-214. (In Persian)
Sifipour, R. (2011). An empirical study of the effect of financial liberalization on the growth of a group of developing and developed countries with an emphasis on Iran, Financial Economy, 14(5), 35-52. (In Persian)
Stultz, R. (1999). Globalization, corporate finance and the cost of capital, Journal of Applied Corporate Finance, 12(3), 8-25.
Taylor, L. (1983). Structuralist Macroeconomics, Applicable Models for the Third World. New York, Basic Books.
Thao, DT & Hua, ZJ (2016). ARDL Bounds Testing Approach to Cointegration, Relationship International Trade Policy Reform and Foreign Trade in Vietnam, International Journal of Economics and Finance, 8 (8), 84-94.
Vahidi Iry Sofla, H. (2021). Investigating the Impact of Foreign Trade on Economic Development (with Emphasis on Crops Marketing). Agricultural Marketing and Commercialization Journal, 5(2), 75-89.
Van Wijnbergen, S. (1983). Interest rate management in LDCs, Journal of Monetary Economics, 12, 433-452.
Varghese, N. (2014). The effect of trade liberalization on Indian groundnut exports, a Markova analysis. Journal of Business and Economic Policy, 1(1), 1-8
Wacziarg. R & Welch, K, (2008). Trade Liberalization and Growth New Evidence, the World Bank Economic Review, 22 (2), 187-231.
amar.org.ir
Zoghipour, A. & Zibaee, M. (2010). Investigating the effects of trade liberalization on the key variables of Iran's agricultural sector: Computable general equilibrium model, Agricultural Economy, 3(4), 67-93. (In Persian)