The Effects of Trade Liberalization on the Agricultural Sub-Sector of the Eurasian and Iran: Multiregional General Equilibrium Approach

Document Type : Research Paper

Authors

1 PhD student in department of economics and management, Shahid Bahonar University

2 Associate Professor, Department of Economics, Shahid Bahonar University of Kerman

3 Assistant Professor, Department of Economics, Shahid Bahonar University of Kerman

4 Professor, Department of Economics, Shahid Bahonar University of Kerman

Abstract

 
The agricultural sector is very important in terms of its contribution to production and employment as well as food security; therefore, assessing the impacts of trade liberalization under the agricultural sub-sector is of particular importance. On this direct, in this study, the effects of importation tariff reduction under the agricultural sub-sector of Iran and the Eurasian Economic Union on welfare and trade balance, based on the model of the World Trade Analysis project and version 10 of its database, in two scenarios (reduction 25% and 50% reduction of tariff rates) are analyzed. The results of this study display that the most negative impact on Iran's welfare is been related to the reduction of Iran's importation tariff rate from the Eurasian Economic Union in the sub-sector of “corn, barley, millet and other cereals”. Moreover, the most positive impact on Iran's welfare is been related to the reduction of Iran's importation tariff rate from the Eurasian Economic Union under the “wheat” sector. In addition, the most positive effect on the welfare of the Eurasian Economic Union is been related to the reduction of Iran's importation tariff rate from the Eurasian Economic Union under the “wheat” sector, Also, there is no significant negative impact on the welfare of the Eurasian Economic Union in different scenarios under the agricultural sector. In Iran, the most positive effect on trade balance changing is been related to the activity of vegetables and the most negative effect on trade balance changing is related to activity of wheat.
 
 
 
 

Keywords

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new economy and trad
Volume 16, Issue 1
July 2021
Pages 1-27

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History

  • Receive Date: 04 November 2020
  • Revise Date: 04 January 2021
  • Accept Date: 20 February 2021

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