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

Document Type : Research Paper

Authors

• 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

10.30495/jae.2023.28591.2273

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.

Keywords

• Gravity model
• Trade balance
• Trade preference agreement
• Exchange rate

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