The Effect of Incentive Programs and Export Supports on the Trade of Agricultural Products

Subject Areas : Labor and Demographic Economics

Hasan Azimi ¹ , Mahmood Yahyazadehfar ²

1 - دانشجوی دکتری علوم اقتصادی دانشگاه تاجیکستان
2 - استادیار دانشگاه مازندران

Received: 2015-04-12 Accepted : 2015-04-12 Published : 2013-04-01

Keywords: F12, Q11, Q13,

Abstract :

Current study aims to investigate the effect of incentive programs on trade and export model of agricultural products. To do this, agricultural products will be divided into 3 categories by various ratios of export awards. Then, the influence of export awards on the product export model will be analyzed 5 years before and 8 years after implementing export award policy during 1997- 2000. To investigate the effect of awards provided on the trade model, 24 agricultural products are divided 3 groups. The first group includes products in which no award is provided. The second group received 1.5 percent or less subsides and the last one received more than 1.5 percent of subsides. Multi-variance analysis reveals that there is no significant difference between the first and second groups (no award and less than 1.5 percent of awards). However, there is a significant difference between the third (more than 1.5 percent award), the first and the second ones. In the other words, to make effective the export awards and incentives, higher than cut-off level awards are required.

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