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




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