Abstract :
The dilemma of cheap food and self-sufficiency for the case of rice in Iran justified continuous government intervention in this market. Among all policy instruments, import tariffs have been extensively used in recent years. However the impacts of the policy on producers and consumers are quite controversial and remain as main question for researchers and policy makers. In this paper, attempts were made to develop a multi-market spatial price equilibrium model for analysis of import tariff changes on the volume of trade, prices, domestic production and consumption. Results showed that domestic production have been strongly protected by non tariff barriers but led to inefficient tariff policies in rice market. Also results showed that the effects of such policy were varied among various regions and between rural and urban areas of Iran. On the whole, increase in import tariff on rice caused a significant decrease in consumption and import volume and increase in retail, farm gate prices and domestic production of rice
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