The Effect of Government Support on the Competitiveness of Agricultural Products

In this paper, the impact of government support to agricultural producers on export and import competitiveness level has been investigated by an integration of Johansson model during 1988-2010. The results show that not only Iran’s government support hadn’t any significant effect on the competitiveness of Iranian agricultural products which exported to or imported but also has contrary sign to theoretical expectations. In other side increase the value added of agriculture sector improved competitive position in both the exported and imported agricultural products.