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The present study has investigated the country specific determinants of the vertical and total intra-industry trade between iran and its main trading partners (including 24 countries) in the agricultural products group during the time pe- riod 2001-2007. For this purpose, first we have measured the types of the intra-industry trade. Then we have examined the determinants of the vertical and total intra-industry trade in the agricultural sector by using the panel technique. Based on the obtained results, it has confirmed that economic development (both per capita income and h Di) has a positive and sig- nificance effect on the iran's bilateral intra-industry trade. Also, the results verify the Linder hypothesis. in sum, the iran's foreign trade in agricultural sector is mainly based on comparative advantage. Specifically, there is a negative and signifi- cant relationship between the revealed comparative advantage and the industry trade. in addition, the endowment of land affects positively the high vertical intra-industry trade. Also according to the results, the size market differences impact the intra-industry trade negatively.

Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners