This study aims at investigation of the possible impacts of non-tariff barriers reduction on agriculture macro variables and rural welfare. To get the objective a computable general equilibrium framework based on the Iranian social accounting matrix of 1999 was used. At first، tariff equivalence of non-tariff barriers was calculated based on price gap approach using the data for 2009. Then the tariff equivalence was incorporated in the model. Welfare impacts were examined in terms of Equivalent Variation (EV) for the income deciles. The findings of the study showed that reduction in tariff equivalence of non-tariff barriers of agricultural sectors and agricultural dependent industries results in lower output and prices of agricultural products such that these price and output changes exceed the corresponding welfare increment. However، reduction in non-tariff barriers of non-agriculture sectors results in higher output in agricultural sectors as well as welfare improvement for rural households. It was also found that reduction in non-tariff barriers of Iranian economy as whole results in lower agricultural output and prices; however، the welfare improvement exceeds the corresponding output and price changes. We also found that higher income deciles enjoy more welfare gains comparing to the lower ones as removing non-tariff barriers. Based on the findings، garadual reduction in agricultural non-tariff barriers، after reducing them in non-agriculture sectors and in association with temporary supporting programs is suggested.
Farajzadeh, Z., & bakhshoodeh, M. (2012). Removing Non-Tariff Barriers in Iranian Economy and Its Impact on Agriculture and Rural Welfare. Agricultural Economics, 6(2), 1-34.
MLA
Zakaria Farajzadeh; Mohammad bakhshoodeh. "Removing Non-Tariff Barriers in Iranian Economy and Its Impact on Agriculture and Rural Welfare". Agricultural Economics, 6, 2, 2012, 1-34.
HARVARD
Farajzadeh, Z., bakhshoodeh, M. (2012). 'Removing Non-Tariff Barriers in Iranian Economy and Its Impact on Agriculture and Rural Welfare', Agricultural Economics, 6(2), pp. 1-34.
VANCOUVER
Farajzadeh, Z., bakhshoodeh, M. Removing Non-Tariff Barriers in Iranian Economy and Its Impact on Agriculture and Rural Welfare. Agricultural Economics, 2012; 6(2): 1-34.
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