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Land market is one of the most important mechanisms that affects the allocation of land to different uses and users. Several studies have investigated the role that market can play in improving the quality of land allocation. Market precondition considers land as a common commodity. However, investigating the nature of land reveals some features that affect market in the land domain. On the other hand, in the analysis of the performance of land market, specific economic features and conditions of the region should also be taken into account. Therefore, the present article aims at analyzing the spatial effects of land market on agricultural economics instability. The data gathered through questionnaires point to the fact that the source of the available capital in the land market of the area is the oil income injected by the government at the national level and border trades at the local level. This is the main difference between the area’s resource-based economy and a developed capitalist economy. Moreover, through satellite images, the most recently updated version of ArcBruTile.07, and careful field observation, the transactions for a period of 15 years from 1380 to 1395 were zoned, taking into account the three variables of land fractioning, agricultural land use change, and the construction of illegal second houses. The results of this study indicate that land market has been impacting the instability of agricultural economy. 

Keywords: Land market, spatial effects, instability of agricultural economy, Khaw and Mirabad districts

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