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Impact of Globalization on Agricultural Production, Exports and Imports in Iran

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  • Hedayat Hosseinzadeh

Abstract

: Globalization is an inevitable phenomenon. In this study, globalization is defined as a process of growing interdependence between all nations of the world. This linkage is encouraged by market liberalization, and information, communication and transportation technologies. Iran s economy has been shaped by oil export, so the industry and service sectors are mainly dependent on the oil income. But the dependency of the agricultural sector on oil income is very less compared to the other sectors. In 2004, this sector contributed 13.7% to Iran s Gross Domestic Product (GDP) and about 25% and 20% to occupation and Iran s non-oil exports, respectively. This situation shows that agriculture sector, though the smallest sector, plays an effective role in Iran s economy. Its production capacity is large and is capable of exporting to international markets. The results of this paper reveal that globalization has had little impact on Iran s agriculture. But, there is a meaningful difference between the quantity of agricultural production, exports and imports after and before 1995. Moreover, despite some fluctuations in the Intra-Industry Trade (IIT) and the Level of International Trade (LIT) indices, the trend lines of the IIT and LIT indices in general show increasing trend after 1995.

Suggested Citation

  • Hedayat Hosseinzadeh, 2010. "Impact of Globalization on Agricultural Production, Exports and Imports in Iran," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 64-78, January.
    • Handle: RePEc:icf:icfjae:v:09:y:2010:i:1:p:64-78
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