IDEAS home Printed from
   My bibliography  Save this paper

Oil Prices and Agricultural Policy in Iran


  • Ahmad Yazdanpanah


The geo-political economy of oil exporting countries in the Middle East and North Africa are mainly affected by abundant oil resources, semi-arid climate, and rapidly growing population. The interplay of agricultural policies for self-sufficiency, food imports, and oil prices have shaped the food security situation in the Islamic Republic of Iran. This paper explores the dynamic and causality linkage between external factors (e.g. oil prices) and internal factors (e.g. domestic food production). In particular, the causality relationships among domestic wheat production, wheat imports, and oil prices in Iran for 1964 to 1991 are examined. The results show that there is a unidirectional "Granger Causality" relation from oil price to wheat imports. This suggests that "past and present" history of oil prices and domestic production of wheat are useful information to improve prediction of wheat imports. But the past history of domestic production of food (wheat) alone cannot improve prediction of food imports. The implications of these results are significant in the context of food availability in Iran. Also, the expected agricultural policy reforms under GATT will further expose Iranian agriculture to instability from its macroeconomy as well as from the world economy. The findings in this study about the dynamic interaction of external and internal variables with food security might by useful in predicting possible consequences of GATT reform.

Suggested Citation

  • Ahmad Yazdanpanah, 1994. "Oil Prices and Agricultural Policy in Iran," Center for Agricultural and Rural Development (CARD) Publications 94-wp123, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:94-wp123

    Download full text from publisher

    File URL:
    File Function: Full Text
    Download Restriction: no

    File URL:
    File Function: Online Synopsis
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:94-wp123. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.