Factors Affecting Trade of Agricultural Products with Emphasis on Oil Revenues

Foreign trade is a significant component in economic development. It is source of revenue for investment in new technology, expanding internal market, productivity growth and increase in production capacity for economic development. On the other hand, accepting the importance of the agricultural sector in the current economy and the country's future and the emergence of non-oil revenue from it it is necessary to pay more attention to agricultural trade.The purpose of this study is to determine factors affecting trade of agricultural products is in period of 1973-2013. The pattern of export and import of agricultural are estimated with the vector error correction model (VECM). The results showed that agricultural production, oil revenue and third national development plan had positive impact. The official exchange rate had negative effect on imports and positive impact on the export of agricultural sector,
while agricultural producer price index effects in the opposite direction of official exchange rates. Liquidity volume and economic sanctions had negative impact on export of agricultural Sector, whereas the impact of targeted subsidies on agricultural exports was positive.