Effects of Exchange Rate Changes on the Value Added of Iran's Agriculture Sector And providing necessary support policies In forwarding conditions

Subject Areas : Agricultural Economics Research

KOOHSAR KHALEDI ¹

1 - Research Assistant Professor of Agricultural Planning, Economic and Rural Development Research Institute (APERDRI), Tehran, Iran

Received: 2019-10-05 Accepted : 2022-04-19 Published : 2022-04-21

Keywords: Iran, Exchange Rate, agriculture sector, Protection Support Policies,

Abstract :

Changes in the exchange rate through changing prices and affecting the trade of inputs and agricultural products will have positive and negative effects on economic variables such as trade balance and its added value. The effect of the exchange rate (its rate and instability) on Iran's agricultural value-added as a study objective was studied using 1977-2018 statistics. results showed a significant positive effect of free exchange rate lag and significant negative effect of free exchange rate volatility on agricultural value added in the short-run; in long run, free exchange rate and free exchange rate volatility had no significant effect on value-added of Iran,s agriculture. The long-term economic growth of the agricultural sector depends on investment. to support agriculture in the forward conditions and in order to maintain its economic growth, targeted management of agricultural inputs, increased guaranteed purchase prices of products, payment of institutional subsidies, injection of public capital into agriculture, and support for private investment in agriculture are proposed.

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