International Science Community Association Research Journal of Recent Sciences 2277 - 2502 1 10 2012 October 2 Investigating the Elasticity of Supply and Demand for Rice Export in Iran 12 18 EN Espinoza E. 1 Instituto de Investigaciones Metalurgicas, Universidad Michoacana de San Nicolas de Hidalgo, Ciudad Universitaria Edificio ”U”, Apartado Escudero R. 2 postal 888, C.P. 58000, Morelia, Michoacán, MÉXICO Tavera F.J. 3 PranavC. Atre 1 School of Mechanical and Building Sciences, VIT University, Vellore-632014, Tamilnadu, INDIA ThundilKaruppaRaj R. 2 Mehrdad Zarenejad 1 Department of Economic, Qaemshahr Branch, Islamic Azad University, Qaemshahr, IRAN > Research Paper 2012 4 13 2012 October 2 This article estimates the major determinants of supply and demand for Rice Export in Iran. This study uses annual time series data (1989-2006) and unit root tests and analyze them using Auto Regressive Distributed Lag (ARDL) model by Pesaran et al. (2001). This co-integration technique accommodates potential structural breaks that could undermine the existence of a long-run and significant relationship between supply and demand for Rice Exportand its main determinants. Error correction coefficient is negative and small and is equal to – 0.54 and it shows that if there is any shock or imbalance in total production, the system will be back to stability after a 3-year period. Together the independent variables explained 91% of the variance in the dependent variables. The remaining 9% was due to unidentified variables. In relation to that, we can conclude that explanatory power is high for the equation. Copyright@ International Science Community Association