RT Journal
T1 TARIFF PROTECTION POLICIES OF MAJOR AGRICULTURAL CROPS IN IRAN
A1 Y. Feizabadi
JF Journal of Animal and Plant Sciences
JO JAPS
SN 1018-7081
VO 25
IS 4
SP 1153
OP 1159
YR 2015
FD 2015/08/01
DO DOI NA
AB <p>Iran`s Agricultural sector is characterized by high tariffs which appear consistent with its political economy equilibrium. To assess tariff structure of agricultural sector, we need to understand what determines that structure. In this article, tariff equation of agricultural sector has been estimated for 100 selected agricultural crops using OLS method. Political variables, as independent variables in tariff equation, include concentration index, Import/output ratio, Intra-industry trade, degree of processing and wage. The overall fit of the equation is acceptable and variables tend to have the expected signs, at high significance level. Afterwards, political optimum tariff and political protection indicator are estimated for all intended products. This political-economy analysis allow<span dir="rtl">s</span><span dir="ltr">&nbsp;</span>us to identify two sets of protected products. First, over-protected products<span dir="rtl">&nbsp;</span>(most of fully- processed products) are those which their actual tariffs are higher than their political optimum tariffs<span dir="rtl">&nbsp;</span>(the value predicted by the political economy variables described). Tariff reduction should not be politically costly. Then, tariff cuts could be more speedy. Second, under-protected products (most of first stage products) are those which their actual tariffs are lower than their political optimum tariffs. Tariff reduction will be politically costly and longer adjusted period may be necessary. In both cases tariff reductions would improve resources allocation and efficiency within the agricultural sector. Therefore, Iranian authorities should consider speeding up long term tariff cuts to provide effective levels of protection.</p>
K1 Agricultural Sector, Tariff Protection, Over and Under-protected Products, Political Protection Indicator
PB Pakistan Agricultural Scientists Forum
LK https://thejaps.org.pk/AbstractView.aspx?mid=2015-JAPS-154