The impact of trade and financial liberalization on export agricultural sector in Iran

Subject Areas : Agriculture Marketing and Commercialization

Seyed Reza Pournaghi ¹ , Farid Askarii ² , Ahmad Jafari Samimi ³ , Farzaneh khalili ⁴

1 - Monetary Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran
2 - Department of Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran
3 - Department of Economics, Mazandaran University, Mazandaran, Iran,
4 - Department of Economics, Islamic Azad University, Abhar Branch, Zanjan, Iran

Received: 2023-05-28 Accepted : 2023-08-26 Published : 2023-12-01

Keywords: trade liberalization, Structural Change, Financial Liberalization, Agriculture Growth,

Abstract :

The increase the export of agricultural products plays a significant role in increasing the production capacity of this sector and the development of agriculture sector and rural areas. So that by increasing the income of the villagers, it prevents them from migrating to the city and creates the basis for investment in production. Therefore, in this study, the role of financial liberalization and trade liberalization as the most important policies of structural changes on the export of Iran's agricultural sector was investigated. The estimation of the Autoregressive Distributed Lag (ARDL) related to the data of 1995 to 2020 showed that among the variables, arable land per worker, Domestic credit to private sector by banks and stocks traded turnover ratio of domestic shares respectively with coefficients of 5.94, 4.51 and 3.25 have the greatest effect on the export. The total effect of each of the policies of financial and trade liberalization is 2.81 and -1.5, respectively. In other words, the simultaneous implementation of structural change policies will increase the export of the agricultural sector, so it is recommended to measure their effects on different sectors of the economy before implementing structural change policies and then implement them.

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