A MATHEMATICAL REPRESENTATION OF THE NEXUS BETWEEN GLOBALIZATION AND ENERGY INTENSITY (CASE OF IRAN'S AGRICULTURE SECTOR)

Agriculture is recognized as a vital sector in the Iranian economy in terms of food production, job creation, foreign earnings and food security. Like any other country, Iran is influenced from globalization and integration of the world economy. The paper carries out an empirical investigation of the relation between globalization and energy intensity in the context of Iran's agriculture. It employs new techniques of time series analysis including Granger causality and Johansen long-run equilibrium tests for the period 1967-2018. Main findings reveal that globalization is a driver for agricultural energy intensity while no evidence is found for reverse association. Other results showed that one percent increase in globalization index leads to 0.89 percent rise in energy intensity in the long-run.