Investigating the Impact of Trade Liberalization on Some Imports Agricultural inputs in Iran

Subject Areas : Agricultural Economics Research

elahe Ahani ¹ , Hamid mohammadi ² , mahmoud ahmadpour ³ , Saman Ziaee ⁴ , Alireza Keikha ⁵

1 - Ph.D. Student, Department of Agricultural Economics, University of Zabol, Zabol, Iran.
2 - Assistant Professor and Director of the Department of Agricultural Economics, Faculty of Agriculture, University of Zabol, Zabol, Iran.
3 - Associate Professor and Director of the Department of Agricultural Economics, Faculty of Agriculture, University of Zabol, Zabol, Iran.
4 - Associate Professor and Director of the Department of Agricultural Economics, Faculty of Agriculture, University of Zabol, Zabol, Iran.
5 - Assistant Professor and Director of the Department of Agricultural Economics, Faculty of Agriculture, University of Zabol, Zabol, Iran.

Received: 2020-10-20 Accepted : 2023-02-26 Published : 2023-02-20

Keywords: panel data, Pooled Mean Group Models, International Trade Integration Index,

Abstract :

the purpose of this study is to investigate the long-term and short-term relationship between the impact of trade liberalization on the import of a number of inputs from the Iranian agricultural sector during the period 2009-2018 using panel data. determine To the fixed and random effects with Hausman test, the test statistic was 37.40, which is quite significant. , in estimating the model, the use of the fixed effects method was more appropriate than the random effects method. To estimate the long-term and short-term relationships of the studied variables, the model of self-explanatory integrated group panel with wide intervals (PMG) and group average (MG) was used.The results of estimating the model of the self-explanatory integrated group average panel with wide intervals and group average indicate that in the long run, the trade liberalization index has a positive effect on the import of agricultural sector inputs. The index of trade liberalization on fertilizer, chemical pesticides and agricultural seeds was calculated as -0.788, 0.17 and 0.043, respectively,

References:

1. Zarouki S, Motameni M, Fereydoni M. Trade Liberalization and Applied Agricultural Performance as Indices of Intra-Sectoral and General Indices of International Trade. Agric Econ Res Quarterly, 2015; 8(1):59–129.


2. Ahmad S, Khan MA, Mustafa U. Agricultural Trade and Ultra-Poor in Pakistan: An Application of CGE Model. Millenn Asia. 2022 Dec 25;13(3):491–512. [DOI: 10.1177/09763996211010607]


3. Azizi A, Mehrabi Basharabadi H, Zare Mehrjerdi MR. Investigation of the effect of trade liberalization on the growth of agricultural sub-sectors. Iran J Appl Econ Stud. 2015;4(3):85–105.


4. Yousefpour N, Salem B. “Study of the effects of trade liberalization in developing countries.” Mon J Econ Issues Policies. 2013;12(1):93–104.


5. Biniaz A, Mohammadi H. The effect of the degree of openness of agricultural trade on food security in Iran (autoregressive approach with distributional interruptions). Agric Econ Q. 2018;2:81–104.


6. Salarpour M, Ahani E. “Study of the Impact of Free Trade on Agricultural Exports (Case Study: Wheat and Pistachio)”, Q J New Appl Stud Manag Econ Account. 2019;104–17.


7. Shokri SK, Mirbagheri AS. The Effect of Trade Liberalization on the Growth of the Non-Oil Economy of OPEC Member Countries. J Financ Econ (Financial Econ Dev . 2012;


8. Haghighat J, Aref Eshghi T, Javadan E. Study of the effect of trade liberalization on corn imports in Iran. Vol. 64, Quarterly Journal of Business Studies. 2014. p. 1–11.


9. Balaghi inalo yaser, Nejati  Mehdi, Bahmani  Mojtaba, Jalaee Sayyed Abdolmajid. The Effects of Trade Liberalization on the Agricultural Sub-Sector of the Eurasian and Iran: Multiregional General Equilibrium Approach. Q J New Econ Trade. 2021;16(1):1–27.


10. Salatin P, Olfat AH. The impact of trade liberalization on the human development index in the group of selected countries. Econ Dev policy. 2019;2(6):132-154. [DOI: 10.22051/edp.2019.20120.1150]


11. Dava E. Trade Liberalization and Economic Growth in the SADS: a Difference-in-Difference Analysis. IESE, Conf Pap. 2013;


12. De Silva N, Malaga JE, Johnson JW. Trade Liberalization Effects On Agricultural Production Growth: The Case Of Sri Lanka. In: Southern Agricultural Economics Association. 2013. p. 1–24. [DOI: 10.22004/ag.econ.143106]


13. Jadoon AK, Abdur Rashid, Azeen A. TRADE 30. HUMAN CAPITAL AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SELECTED ASIAN COUNTRIES. Pakistan Econ Soc Rev. 2015;53(1):113–32.


14. Nobuhiro H. Analyzing agricultural International trade and the correlation between food security and trade profits. J Asian Econ. 2016;43:27–36.


15. Muhammad A, Khan T, Walmsley K. Trade Liberalization and Income Inequality: The Case for Pakistan. J Asian Econ. 2021;74. [DOI: 10.1016/j.asieco.2021.101310]


16. Nouri K, Yazdani S. Globalization of the economy and its effects on Iran’s agricultural sector (a case study of rice and dates). Proc Third Iran Conf Agric Econ Ferdowsi Univ Mashhad. 2000;


17. Mohammadi H, Naghshineh Fard M. "Effects of Commercial Liberalization on Supply, Demand, Import and Export of Wheat and Pistachio in Iran. J Agric Sci. 2006;12:27–33.


18. Edwards. S. Monetarism and liberalization” Chicago University Press. Chicago. 1991;


19. Zoghipoor A, Zibaei M. The effects of agricultural trade liberalization on key variables. Econ Res J. 2010;3:113–38.


20. Gorji E, Alipourian M. Analysis of the effect of trade liberalization on the economic growth of OPEC member countries. Q J Bus Res. 2006;40:187–203.


21. Zaranejad M, Nouri I. Application of Combined Data in Econometrics. Q J Econ Stud. 2005;2:21–52.


22. Pesaran M., Shin Y, Smith R. Bounds testing approaches to the analysis of level relationships. J Appl Econom. 2001;16:289–326.


23. Fazli P, Abbasi E. Analysis of the Validity of Kuznets Curve of Energy Intensity among D-8 Countries: Panel-ARDL Approach. Int Lett Soc Humanist Sci. 2018;81:1–12.


24. Houthakker H, Magee SP. Income and Price Elasticities in World Trade. Rev Econ Stat. 1969;51(2):125–111. [DOI: 10.2307/1926720]


25. Khan M. Import and Export Demand in Developing Countries. IMF Staff Pap. 1974;21(3):93–277. [DOI: 10.5089/9781451969344.024]


26. Bölük G, Mert M. Fossil and Renewable Energy Consumption, GHGs (Greenhouse Gases) and Economic Growth: Evidence from a Panel of EU (European Union) Countries. Energy. 2014;74:439–46.


27. Sahabi B, Sadeghi H, Shoureh Kennedy. “The Impact of Exchange Rates on Iran’s Non-Oil Exports to Selected Middle Eastern Countries (Turkey, UAE, Saudi Arabia, Kuwait, Pakistan)”, . Q J Econ Res. 2011;(11):100–81.


28. Masood S, Khurshid N, Haider M, Khurshid J, Khokhar AM. Trade potential of Pakistan with the South Asian Countries: A gravity model approach. Asia Pacific Manag Rev. 2022 Apr;


29. Taybi SK, Misri Nejad S. Commercial Liberalization of the Agricultural Sector and the Application of Computable General Equilibrium Models (CGE) Study of Iranian Households. Q J Econ Stud. 2007;4(1):5–24.


30. Azizi V, Mehregan N, Yavari Gh. Effects of Trade Liberalization on the Trade Balance of the Agricultural Sector in Iran", Quarterly Journal of Agricultural Economics and Development. 2015. Volume 23, Number 92,141- 16