Investigation Of Effective Factors On Bilateral Trade Costs Of Agricultural Product

 

Volume 2, Issue 3, Number 3, Pages 51-60, Published Online July 20, 2014

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Author(s):

Mitra Jalerajabi and Reza Moghaddasi

ABSTRACT:

This study concerns with calculation of Iran’s agricultural bilateral trade costs and major influential factors on it in Iran’s Bilateral Trade with Developing countries group over the period 1995-2010. Main findings reveal that over the period 1995-2010 weighted average of agricultural trade cost with developing partner has declined by 44 percent. This reduction, however, was greater for UAE and Brazil from developing countries. Based on estimated regression, agricultural bilateral trade costs with distance, bilateral tariff rate and lag of agricultural bilateral trade costs variables are positively related whereas island and adjacency variables have the opposite effect on Iran s agricultural bilateral trade costs. Finally based on results is suggested that for increasing power contest of export, agricultural products must be destined based on trade costs.

KEYWORDS:

Bilateral trade costs, Gravity, Agricultural products, Panel data.

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