• Home
  • The Effect of Membership in Trade Agreements on Iran's Agricultural Bilateral Trade Balance

Share To

Article Url


Manuscript ID : JAE-2107-2273 (R1) Visit : 52 Page: 93 - 107

10.30495/jae.2023.28591.2273

Article Type: Original Research

The Effect of Membership in Trade Agreements on Iran's Agricultural Bilateral Trade Balance

Subject Areas : Agricultural Economics Research

Elham Mehrparvar Hosseini 1 , Hamed Rafiee 2 , zeinab rostamzade 3 , milad aminizade 4

1 - 1. PhD. in Agricultural Economics, University of Tehran
2 - Assistant Professor of Agricultural Economics, University of Tehran
3 - PhD. Candidate of Agricultural Economics, University of Tehran
4 - PhD. Candidate of Agricultural Economics, Ferdowsi University of Mashhad

Received: 2021-07-28 Accepted : 2024-01-14 Published : 2024-01-21

Keywords: Gravity Model, Exchange Rate, Trade balance, Trade preference agreement,

Abstract :

Nowadays, the membership of countries in trade agreements has opened a new space for the economic movement of different countries by facilitating trade through deregulation, dismantling tariff and support borders, increasing integration of national and regional markets, and access to different markets. But for all the benefits stated for agreements in facilitating trade conditions, the state of trade balance between countries in different economic sectors following membership in the agreements is not clear. Therefore, in this article, the effect of Iran's membership in the agreements, the Global System of Trade Preferences and the Organization of Economic Cooperation on her agricultural trade balance with 45 major trading partners using the Gravity model in the period 2001-2017 has been investigated. According to the results, Iran's membership in trade agreements has significantly diminished Iran's agricultural trade balance. Also, the variables of income and population of trading partners and common land border have positive and significant effect and variables of exchange rate, Iranian income, distance and global financial crisis have negative and significant effect on Iran's agricultural trade balance.

References:


  1. Tinbergen J. Shaping the world economy; suggestions for an international economic policy. 1962.
    2.
  2. Vijayasri G. The importance of international trade in the world. International Journal of Marketing, Financial Services & Management Research. 2013;2(9):111-9.
    3.
  3. Harati J, Behrad-Amin M, Kahrazeh S. A study of the factors affecting Iran's export (gravity model application). Economic Growth and Development Research. 2015;6(21):46-29.
    4.
  4. Vanhnalat B, Phonvisay A, Sengsourivong B. Assessment the effect of free trade agreements on exports of Lao PDR. International Journal of Economics and Financial Issues. 2015;5(2):365-76.
    5.
  5. Baier SL, Bergstrand JH. Do free trade agreements actually increase members' international trade? Journal of International Economics. 2007;71(1):72-95.
    6.
  6. Narlikar A. The World Trade Organization: a very short introduction: Oxford University Press, USA; 2005.
    7.
  7. Namdar S. GATS and Methods of Trade in Services in Offshore Outsourcing. Journal Encyclopedia of Economic Law. 2017;24(11):25-55.
    8.
  8. Saeidi R, Saeidi K, Dehghani A. Feasibility of Establishing Preferential Trade Agreement with Iran and Countries of Brics. 2014.
    9.
  9. Bagwell K, Staiger RW. Multilateral trade negotiations, bilateral opportunism and the rules of GATT/WTO. Journal of International Economics. 2004;63(1):1-29.
    10.
  10. Dai M, Yotov YV, Zylkin T. On the trade-diversion effects of free trade agreements. Economics Letters. 2014;122(2):321-5.
    11.
  11. World Trade Organization (WTO). WTO Database. 2020.
    12.
  12. Chawla MI. Economic Cooperation Organization: A Historical Perspective. Journal of Political Studies. 2017;24(2).
    13.
  13. Orefice G, Rocha N. Deep integration and production networks: an empirical analysis. The World Economy. 2014;37(1):106-36.
    14.
  14. Islamic Republic of Iran Customs Administration. Tehran, Iran2019.
    15.
  15. Estevadeordal A, Suominen K. Sequencing regional trade integration and cooperation agreements. World Economy. 2008;31(1):112-40.
    16.
  16. Haftel YZ. Commerce and institutions: Trade, scope, and the design of regional economic organizations. The Review of International Organizations. 2013;8:389-414.
    17.
  17. Hicks R, Kim SY. Reciprocal trade agreements in Asia: credible commitment to trade liberalization or paper tigers? Journal of East Asian Studies. 2012;12(1):1-29.
    18.
  18. Horn H, Mavroidis PC, Sapir A. Beyond the WTO? An anatomy of EU and US preferential trade agreements. The World Economy. 2010;33(11):1565-88.
    19.
  19. Egger P, Larch M, Staub KE, Winkelmann R. The trade effects of endogenous preferential trade agreements. American Economic Journal: Economic Policy. 2011;3(3):113-43.
    20.
  20. Prospects GE. Trade, Regionalism and Development. Washington, DC: World Bank. 2005.
    21.
  21. Mehrparvar Hosseini E. The Factors Affecting Agricultural Commodities Trade Balance of Iran. Iran: University of Tehran; 2013.
    22.
  22. Adibi A, Habibzadeh T. The legal effects of Iran joining the World Trade Organization with an emphasis on the TRIMs agreement. Legal Research Quarterly. 2018;21(82):181-203.
    23.
  23. Khodadadi M. Fully modify ordinary least square approach in sanctions on Iran's trade and major trading partners in the sports industry. Applied Research in Sport Management. 2018;7(1):23-32.
    24.
  24. Mehrparvar Hosseini E, Aminizadeh M, Rafiee H, Riahi A, Bastani M. Designing of Iranian dates trade model; application of trade advantages and theory of market structure. Agricultural Economics. 2013;7(2):19-46.
    25.
  25. Aminizadeh M, Rafiee H, Riahi A, Mehrparvar Hosseini E. Pattern of Competitiveness of Pistachios World Premier Exporters in Iran's Importers Market. Agricultural Economics. 2014;8(2):41-68.
    26.
  26. Zarif M, Salarpoor M, Karbasi A. Trade evaluation of Iranian agricultural sector using gravity model and panel data. Journal of Agricultural Economics and Development. 2011;25(2):192-9.
    27.
  27. Carrère C. Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model. European Economic Review. 2006;50(2):223-47.
    28.
  28. Guillin A. Trade in services and regional trade agreements: Do negotiations on services have to be specific? The World Economy. 2013;36(11):1406-23.
    29.
  29. Shepherd B, Wilson NL. Product standards and developing country agricultural exports: The case of the European Union. Food Policy. 2013;42:1-10.
    30.
  30. Fulponi L, Engler A. The impact of regional trade agreements on Chilean fruit exports. 2013.
    31.
  31. Dür A, Baccini L, Elsig M. The design of international trade agreements: Introducing a new dataset. The Review of International Organizations. 2014;9:353-75.
    32.
  32. Hafeez Siddiqui S, Zafarullah M, Ijaz Latif M, Shabir G. Impact of preferential trade agreements (PTAs) on firms’ degree of internationalization: Evidence from Pakistan. South Asian Journal of Global Business Research. 2014;3(1):54-78.
    33.
  33. Tran N, Nguyen A, Wilson NL. The differential effects of food safety regulations on animal products trade: The case of crustacean product trade. Agribusiness. 2014;30(1):31-45.
    34.
  34. Kohl T, Brakman S, Garretsen H. Do trade agreements stimulate international trade differently? Evidence from 296 trade agreements. The World Economy. 2016;39(1):97-131.
    35.
  35. Saucier P, Rana AT. Do preferential trade agreements contribute to the development of trade? Taking into account the institutional heterogeneity. International Economics. 2017;149:41-56.
    36.
  36. Galkin P, Bollino CA, Atalla T. Effect of preferential trade agreements on China’s energy trade from Chinese and exporters’ perspectives. International Journal of Emerging Markets. 2018;13(6):1776-97.
    37.
  37. Doan TN, Xing Y. Trade efficiency, free trade agreements and rules of origin. Journal of Asian Economics. 2018;55:33-41.
    38.
  38. Moghaddasi R, Rahimi R. The effects of free trade agreements on agricultural bilateral trade in ECO countries. Journal of Financial Economics. 2012;5(4):9-22.
    39.
  39. Azizi V, Mehregan N, Yavari GR. Effects of Trade Liberalization on the Trade Balance in Agriculture of Iran. Agricultural Economics and Development. 2016;23(4):141-68.
    40.
  40. Mohammadi H, Saghaian SM, Aghasafari H, Aminizadeh M. Assessing the effective factors on agricultural intra-industry trade between Iran and Asian trading partners. Agricultural Economics. 2018;12(3):133-51.
    41.
  41. Aminizadeh M, Karbasi A, Riahi A, Ramezani M. Assessing the Effect of Iran’s Membership in Trade Agreements on Saffron Exports. Saffron Agronomy and Technology. 2019;7(4):537-49.
    42.
  42. Mohtashami T, Momeni F. The ISO 9000 Standards Effect on Iran's Trade. new economy and trad. 2018;13(3):147-59.
    43.
  43. Deardorff A. Determinants of bilateral trade: does gravity work in a neoclassical world? The regionalization of the world economy: University of Chicago Press; 1998. p. 7-32.
    44.
  44. Shakibaee A, Bata FK, Heydarabadi S. Analysis of Trade Integration Between Iran & Turkey. Journal Of Economics and Regional Development. 2011;18(1).
    45.
  45. Pöyhönen P. A tentative model for the volume of trade between countries. Weltwirtschaftliches archiv. 1963:93-100.
    46.
  46. Frankel JA, Rose AK. The endogenity of the optimum currency area criteria. The economic journal. 1998;108(449):1009-25.
    47.
  47. Bahmani-Oskooee M, Hegerty SW. The J-curve and NAFTA: evidence from commodity trade between the US and Mexico. Applied Economics. 2011;43(13):1579-93.
    48.
  48. Boyd JH, Levine R, Smith BD. The impact of inflation on financial sector performance. Journal of Monetary Economics. 2001;47(2):221-48.
    49.
  49. Kahouli B, Maktouf S. The determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model. International Business Review. 2015;24(3):518-29.
    50.
  50. World Bank. World Bank Database. 2020.
    51.
  51. Aminizadeh M, Rafiee H, Riahi A, mehrparvar hosseini e. Assessing the Role of Institutional Quality of Iran and its Trade Partners on Iran’s Agricultural Products Exports. Iranian Journal of Agricultural Economics and Development Research. 2020;51(1):1-13.
    52.
  52. Baek J, Koo WW. Identifying Macroeconomic Linkages to U.S. Agricultural Trade Balance. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie. 2008;56(1):63-77.
    53.
  53. Yazici M. Is the J-curve effect observable in Turkish agricultural sector? Journal of Central European Agriculture. 2006;7(2):319-22.
    54.
  54. Centre d'Etudes Prospectives et d'Informations Internationales. CEPII Database. 2020.
    55.
  55. Central Bank of the Islamic Republic of Iran. Tehran, Iran2019.
    56.
  56. Ülengin F, Çekyay B, Palut PT, Ülengin B, Kabak Ö, Özaydın Ö, Ekici ŞÖ. Effects of quotas on Turkish foreign trade: A gravity model. Transport Policy. 2015;38:1-7.
    57.
  57. Khosravi M, Mohseni R. The effect of exchange rate uncertainty on agricultural trade balance (An application of GARCH, EGARCH and TGARCH model). Agricultural Economics. 2014;8(2):69-86.
    58.
  58. Yazdani S, Shajari S. The impact of macroeconomic indicators on agricultural trade balance of Iran. American Journal of Applied Sciences. 2009;6(8):1473.
    59.
  59. Torki L, Tayebi SK, Yazdani M, Fathi E. Dynamics of Iranian Trade with Ten Trade Partners to Exchange Rate Changes According to Financial Crisis Index. 2014.
    60.
  60. Krugman PR, Obstfeld M. International economics: Theory and policy: Pearson Education; 2009.
    61.

61.       Farsi Aliabadi MM, Moghaddasi R, Gilanpour O. Impact of Macroeconomic Variables on Agricultural Trade Balance. Agricultural Economics and Development. 2015;23(1):1115-136.

_||_

Related articles

The rights to this website are owned by the Raimag Press Management System.
Copyright © 2021-2024

Home| Login| About Us| Contact Us|
[فارسی] [العربية] [fa] [ar]