the key questions with regard to accessing developing countries such as Iran to WTO are whether domestic agricultural markets are integrated; and if these markets will integrate with world agricultural markets. To address these questions, integration of main crops' markets in Iran are analyzed in this article using the Engle-Granger cointegration technique and vector autoregressive (VAR) model applied to 1984-2002 price data. The underlying hypothesis is that government intervention in the markets to support producers/consumers of agricultural products is the main determinants of market integration. The typical results show that although long-run market integration exists among local markets of products such as rice and wheat, Iran's major agricultural product markets are not integrated with world markets in the long run. Government interventions were recognized to be as the major impediments to domestic and world market integrations. Finally some policy implications are discussed.

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