Paper Information

Journal:   AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)   2009 , Volume 3 , Number 3; Page(s) 1 To 14.
 
Paper: 

MEASURING EFFECTS OF RIAL APPRECIATION ON THE LEVEL AND STRUCTURE OF DOMESTIC SUPPORT IN IRAN

 
 
Author(s):  GILANPOUR O.*, HEJAZI M.
 
* FOREIGN TRADE &MARKETING RESEARCH DEPARTMENT AND AGRICULTURAL ECONOMIST, AGRICULTURAL PLANNING , ECONOMICS RESEARCHES AND RURAL DEVELOPMENT INSTITUTE
 
Abstract: 

This paper theoretically explains how AMS, criteria for measuring domestic support in AOA, is affected by distorting exchange rate and how Rial appreciation by government intervention in exchange market changed the level and structure of domestic support in Iran between 2001 and 2005. Our Results shows that Rial appreciation causes to overestimate the share of price supports to AMS in all years, overestimating AMS in 2002, 2004 and underestimating in 2001, 2003, 2005. This reveals that net effect of exchange rate on AMS depends not only on the manner of support but also on the distortion size in price support and inputs subsidies.

 
Keyword(s): EXCHANGE RATE, AOA, AMS, RIAL, IRAN
 
References: 
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