Study the Effect of Meat Market Liberalization on Rural Welfare in Iran

Abstract

This study aims to study the effect of elimination of government intervention and liberalization<br />in meat market in rural area in Iran on consumer welfare with time series data for 1981-2007.<br />An alternative partial equilibrium model was developed to examine the welfare effect of meat<br />trade liberalization. Result show that on producer side, government budget (subsidy on<br />production), foreign exchange and producer welfare are increase, on consumer side,<br />government budget (subsidy expenditure) and foreign exchange are decrease; also the effect of<br />trade liberalization on rural consumer welfare is positive and increase under open<br />access(without considering consumer in urban area).