Survey the Effect of Financial and Taxation Policies on Agricultural Trade in Iran

Economic policies are activities and intervention in economy to achieve socio-economic aims and transfer from existence to optimal status. Financial policies are one factor that effect government financial system from income and costs aspect to effect on macro elements. Agricultural sector is one of the most important economic sectors in Iran and making financial policies can effect on production and then export and import of its productions. So، this paper is surveyed the effect of financial policies on agricultural trade during 1971-2009. For this aim the relationship between government costs and tax index and agricultural goods trade were estimated by using econometric models in short and long terms. The results indicated government costs and tax index had positive effect on value of agricultural goods import and export in short terms. While government costs had just positive effect on of agricultural goods import and export in long terms and the effect of tax index was negative. So، it was suggested to reform tax system by reduce tax rate on investment to provide suitable situation for investment and production and then employment in agricultural sector.