The Impact of Oil Price Fluctuation on the Price of Agricultural Products in Iran

Document Type : Research Paper

Authors

• babak esmaeili ¹
• Shahriar Nasabian ²
• Seyed Nematollah Mosavi ²
• marjan damankeshideh ³
• ali akbar khosravi nejad ³

¹ دانشکده اقتصاد و حسابداری تهران مرکز

² .

³ دانشگاه آزاد اسلامی تهران مرکز

10.30495/jae.2022.29646.2310

Abstract

The aim of this paper is to study The Influence of Oil Price Fluctuation on the Price of Agricultural Products Considering Food Crisis Periods. To fulfill such goal, the statistical information of 1374-1397 with the monthly data frequency and with using the VAR Panel approach with considering Food Crisis Periods. The variables used in this study include corn price logarithm, rice price logarithm,soybeans price logarithm, wheat price logarithm, barley price logarithm, real currency rate logarithm, crude oil price logarithm, world oil production logarithm, world real economic activity logarithm and oil safty reserve logarithm.The results show that the price of all agricultural products responds positively to oil price shocks. Among these variables, the price of soybeans, rice, wheat, corn and barley showed the strongest responses to the shocks of oil price respectively.The results indicate that the price oil shocks result in the increase in the price of the agricultural products. The shocks related to the section of oil supply and demand have greater influence on the price increase of agricultural products as the alternative via biofuels

Keywords

• Oil Price
• Food Price Crisis
• Agricultural Products
• Inflation Rate
• VAR Approach (VAR)

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