Estimating Supply and Demand Function of Iran's Agricultural Products Export

Export of nonoil goods in economic activities is so important and its effect on economic and comparative growth is undeniable. So, Emphasize on agricultural sector and development of export in this sector prepares good conditions, for Iran, to be present at international markets relying its advantages. The study tries to recognize necessary policies to enhance agricultural export potentialities. To this end, this study investigates determinants of supply and demand of Iran’s agricultural products export from 1965 to 2007 by using Tree-stage least square. The result indicates that shadow exchange rate, relative prices, product quantity, domestic price and dummy variable related to war, are effective variables on demand and supply of exports. Also, price elasticity in long run and short run for export demand are estimated to be -1.83 and -2.12, respectively. And Price elasticity of export supply in short run is 2.17.