To evaluate the demand for imported commodities to Iran, the Almost Ideal Demand System (AIDS) was applied for the years 1972 through 1992.
The analysis indicated that most of the commodities imported among capital, intermediate. and consuming goods were mainly intermediate which are the
most in terms of quantity and value in the study period. More specifically. 59 percent of the total value of all imported goods were intermediate. Results
indicated imported intermediate and consuming goods were recognized as necessary commodities. However, capital commodities were classified as
luxurious. on the average the income elasticity of demand for intermediate commodities was 0.921. v,"hilc it was 0.652 and 1.561 for consuming and Luxurious goods respectively. The results also illustrated that demand for these commodities was inelastic. indicating that exporting countries benefited
considerably from this situations. Furthermore, intermediate goods were complement for both capital and consuming goods.
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