HOW NON-TARIFF MEASURES AFFECT IRAN’S AGRICULTURAL IMPORTS
This study aimed at exploring the impacts of non-tariff measures of imports for two main cereals in Iran. To this end, non-tariff measures for two products were calculated using price gap method during 17-year period from 2001-17. The explanatory variables included in this study are:
(A) gross domestic product (GDP) of Iran and the countries exporting to Iran,
(B) GDP per capita as income per capita of Iran and the exporting countries,
(C) the distance between Iran and exporting countries,
(D) the non-tariff measures as barriers of trade and the total production of wheat and maize in Iran.
The results of the fixed effect estimation (panel data) showed that a one percent increase in non-tariff measures has caused a consequent reduction in the level of maize and wheat imports by 0.44 and 0.69, respectively. GDP per capita in the exporting countries has decreased the level of maize and wheat imports by -4.83 and -5.02 percents, respectively. Concurrently, GDP per capita of Iran has increased the value of import by 3.98 percent for maize and 9.94 percent for wheat. Hence, wheat production was significant and negative, so a one percent increase in wheat production has caused a 10.07 percent reduction in its import while other factors did not show significant effect.
maize, wheat, non-tariff measures, fixed effect, gravity model.