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Abstract

This paper aims to analyze the economy-wide impact of an increase in the export of food processing industry in Iran and to compare it to the same increase in oil and gas exports as the main eco-nomic sector. It uses both demand-driven and supply-driven mixed Input-Output models referred to as 2011 SAM framework purposely designed by authors. The results show that an increase in the food pro-cessing industry promotes the production of other sectors and, increases factor employment and house-hold income. The significance of this impact is comparable to a similar shock in the oil and gas sector.

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