The Effect of Institutions on Iranian Pistachio Exports to Asian Blocs (Spatial Econometric Approach)

Subject Areas : Agricultural Economics Research

shekoofe nagheli ¹ (Semnan university)
Majid Maddah ² (Semnan University)
esmaiel abounoori ³ (Semnan university)

Received: 2019-04-30 Accepted : 2021-06-13 Published : 2021-10-23

Keywords: Spatial econometric, Institutions, Pistachio Exports, Economy of Iran,

Abstract :

Introduction: Iran is as one of the largest producers and exporters of pistachio in world markets. Considering that the export of this commodity is one of the main sources of foreign exchange earnings and has an important role in reducing the government's general budget dependence on oil revenues, identifying the factors affecting on pistachio exports to world markets is essential and it can lead to the improvement of the country's position in the global pistachio market. Institutional conditions are the factors affecting on the export of goods, including pistachio from Iran to world markets.
Materials andMethods: This paper examines the effect of institutions on Iranian pistachio exports to Asian blocs using the spatial econometric method and Mixed Regressive-Spatial Autoregressive Model. The research pattern is a regression model with panel data during the time period 2000-2015 from Iranian trade with Asian blocs.
Findings: The results of model estimation are shown International Country Risk Guide (ICRG) variable as an indicator of institutions has a positive and significant effect on Iranian pistachio exports to Asian blocs.
Conclusion: The International Country Risk Guide index has three types of political, financial and economic risk of the country, according to the findings of the article as one of the most important obstacles to the expansion of investment and pistachio trade in Iran. Reducing this risk brings political, financial and economic stability will increase Iranian pistachio exports.

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