The Welfare Effects of Rising Imported Food Prices in Iran مقالة

مؤلف: Farajzadeh، Zakariya ؛ Esmaeili، Abdoulkarim ؛

Economic StudiesIJES Summer & Autumn 2016, Volume 5 - Number 2 ، العلمية - البحثية (Ministry of Science/ISC (‎20 صفحة - من 189 إلی 208 )

الکلمات المفتاحية: Food import demand QAIDS Welfare impacts Iran AIDS Iranian Import

خلاصة:

Imports of food products account for a significant amount of total imports into Iran. Despite a rise in price of food products over the last two decades, there has been a rise in their imports. The present study was an attempt to analyze the import demand for foodstuffs through the use of a Quadratic AIDS model. Welfare impacts were also measured using compensated variation. The findings revealed own-price inelastic demand for all products, except for tea and cheese. The price response of food imports was found to be low. Overall, the rise in price of food products as high as their trend over the last two decades has resulted in an annual welfare loss of 2.2 percent.

ملخص الجهاز:

ir The Welfare Effects of Rising Imported Food Prices in Iran Zakariya Farajzadeh, Abdoulkarim Esmaeili Department of Agricultural Economics, Shiraz University, Shiraz, Iran. Given the above mentioned conditions, the present study is to contribute to the empirical literature of import demand through the use of a QAIDS model and to explore the welfare impacts of an increase in food prices through the use of the Compensated Variation (CV). The compensated variation for the first order effect of price changes, which does not take into account households’ behavioral response substitution between commodities, can be approximated using a first order Taylor expansion of the minimum expenditure function as follows (Friedman & Levinsohn, 2002): n lne  wiln pci i1 (15) where wi is the budget share of good i in the initial period, and ln pci represents the proportionate consumer and producer price changes of commodity i . Thus, one has to consider a second order Taylor expansion of expenditure function which allows for substitution behavior as follows (Friedman & Levinsonh, 2002): lne  n 1 n wln p  n w ln(p )ln(p ) (16)  i i1 ci  i1 j 1 i ij ci cj where  ij stands for the compensated price elasticity. , 2012; Gharibnavaz & Waschik, 2015), a narrow focus has been on the increasing prices of imported food products. This study investigates the driving forces behind import demand for the main imported food products through the use of a QAIDS model and by taking into account the welfare impact of an increase in prices of the selected items.

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