Impact of Decrease in World Agricultural Prices on Agricultural Trade Balance of Iran

The global financial crisis, started in 2008, has affected many economies and it has also caused a significant drop in global growth during past years. As time went on, various sectors has been affected due to decrease in demand and prices. Using CGE model, this paper investigates the effects of global agricultural price decrease on agricultural trade balance of Iran. The results showed that decrease in prices of agricultural goods has had a negative effect on trade balance of all agricultural products except three products, namely, wheat, industrial crops and wood products. In brief, the decline of global agricultural prices deteriorated the agricultural sector trade balance mainly due drop in export of horticultural products