Studying Domestic and World Markets Integrations of Iranian wheat

  Market integrations of wheat in Iran is studied in this study applying co integration approach of Engle-Granger and IMC index. The results indicated that most of domestic wheat markets are long-run ones integrated with each others. Domestic wheat markets in Iran are long-run integrated with the corresponding markets in the other studied countries, but on the basis of IMC index, it has a low degree of integrations with central world market. In general, it can be said that government policies, commercial systems and degree of self-sufficiency are important in trade among the countries. Internal market integration within a country depends on transportation cost, self sufficiency and government policies. Market infrastructures and information systems are incomplete and they lead to market inefficiencies in Iran. According to the findings, trade liberalization is suggested in order to improve integration of Iranian wheat market with those in rest of the world. Furthermore, developing local markets to increase markets competition, markets concentration and consequently markets integrations are highly recommended.