Effects of Export Promotion in Agriculture and Manufacturing Sectors on the Economy of Iran: An Analysis in a SAM Framework

A social accounting matrix (SAM) was used as an analytical model to
investigate the mutua/effects of export expansion in agriculture and
manufacturing sectors as well as the social and economic impacts of this
policy on the Iranian economy. The effects of the above policies were
analyzed within several scenarios including a 25 percent increase in exports of agriculture and manufacturing products, a 50 percents rise in exports of horticulture products and a 25 percentrise in all other agricultural products, lind a 1000 thousands Rials increase in the exports of agriculture and manufacturing products. The simulation results show that the policy emphasizing export promotion in agricultura I sector comparing to the policy giving priority to the export ojmanufacturingproducts results in a faster economic growth in our country. Based on the results of this study, following the policy of agricultural export promotion, while causing growth of Iranian economic sectors, leads to abetter income distribution in Iran.
The results of the study reveal the fact that, because agricultural sector has tt great interrelationship with the other economic sectors, it can play an important role in motivating overall economic activities in Iran