The Analysis of Iran and European Union Regionalism in Agricultural Sector

Economical integration of countries that have common economical profits and political issues can provide resources reallocation, production raise, trade and welfare for them. Regarding to globalization of international trade and economical integration, countries with identifying their characteristics in the economical world want to contact with their large trade partners. Because one of the main economical union of the world is European Union, and also is one of the largest trade partners of Iran (Iran for applying to demand of agricultural production import goods and export to this union), in this paper using panel data, import demand function for Iran is estimated and the effects of regionalism in this polar trading in trade and commerce of Iran was investigated. Results show that, economical structure of some union countries (Ireland, Belgium and Netherlands) is as near as Iran economical structure (while they are differ from social, political, cultural and etc), therefore, Iran can increase its trade relation to these countries and raising its commercial balance and welfare.