Investigating the common stochastic trend between values added of agricultural of Iran and its main trading partners

Subject Areas : Agricultural Economics Research

maryam garejafary ¹ , kiumars shahbazi ² , hasan khodaveysi ³

1 - Ph.D. Student, Economic Sciences, Industrial Economics, University of Urmia. Saved Community
2 - Professor of Urmia University.
3 - Associate Professor of Urmia University.

Received: 2019-01-09 Accepted : 2020-12-16 Published : 2021-07-23

Keywords: stochastic Common trend, Growth of the Agricultural Sector, Correction, Gonzalo and Granger's Method,

Abstract :

One of the main goals of each country is to provide the food needed by society, which can be achieved through growth in agriculture. In this regard, the present study has tried to investigate the common stochastic trends between the value added of the agricultural sector of Iran and its major partner trading in the period of 1967-2015. To achieve this aims, the Gonzalo and Granger method, which is used in the framework of the multivariate coherent model of Johansen and Juselius (1990), has been used. The results show that there is 2 Correction and two common stochastic trend of agricultural value added in the studied countries, which reflects the complete lack of long-term integration between this group of countries. . Accordingly, in order to achieve sustainable growth in agriculture, the government will expand its agricultural trade with China by reducing tariffs on agricultural imports and subsidizing agricultural exports, so that the domestic agricultural sector will grow from value-added agriculture to the global agricultural sector.

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