Investigating the Market Structure and Comparative Advantage of Medicinal Plants Export in Iran and World Selected Countries

Subject Areas : Agricultural Economics Research

erfaneh rasekhjahromi ¹ , samaneh noraniazad ²

1 - Faculty Member of Economics, Payame Noor University, Tehran, Iran.
2 - Assistant Professor of Economics, Payame Noor University, Tehran, Iran.

Received: 2020-10-23 Accepted : 2023-02-27 Published : 2023-04-21

Keywords: Comparative Advantage, Medicinal Plants, Concentration ratio index, Herfindahl-Hirschman index, Chi-Square,

Abstract :

Introduction: Due to the increasing importance of medicinal plants, In order to determine Iran's comparative advantage in the export of medicinal plants. Methods: Indices Revealed Comparative Advantages and Revealed Symmetric Comparative Advantages and of apparent comparative advantage, symmetric apparent comparative advantage and chi-square were applied, In order to determine global export market structure of medicinal plants, two indices of concentration ratio and Herfindahl-Hirschman were used. The required information was extracted from the FAO and Trade Map site in the period 2018-2011. Results: The results indicated that Iran had a comparative advantage export in the medical planet’s export with 0909, 1301 and 130212 cods and was able to compete in global markets. Moreover, the results of  market structure showed that in the global export market of medicinal plants fennel, anise, badian, cumin and juniper berries (code 0909) have oligopoly structure, extracts of liquorice (code 130212) type of oliyogopoly market  and gum group (code 1301) follow the structure of the monopolistic market. Also, 60-50% of the export of medicinal plants with code 0909 assigned to India and Syria, 70-50% of the export of medicinal plants with code 130212 to the United States, Iran, China, France, Germany, UAE and Turkmenistan and 40-55% of exports with the code 1301 were in the hands of India, France, Nigeria, Sudan, USA, Indonesia and Thailand. The average share of Iran in the export of medicinal plants with code 0909 (2.87), code 130212 (17.37) and code 1301 (1.17) percent. Conclusion: Therefore, given that Iran has potential in order to expand and develop the export of these products, it is necessary to implement measures such as; Reduce the seller concentration markets, process and improve the goods packaging in global markets and supporting of exporter by government suggested.

References:

- Agricultural jihad ministry, 2018, https://www.maj.ir/Dorsapax/userfiles/Sub65/amarnamehj2-1398-site.pdf

2- Amir Teimori S, Shemshadi K, Khalilian S. Place of Iran in Export of Fennel: The Export Comparative Advantage Approach. Agricultural Economics Research.  2011, 3(12): 81-95. (In Persian).

3- Anouyeh Tekiyeh L. The Study of Comparative Advantage of Iran\'s Apple Export in Comparison to the Other Apple Exporter Countries. Agricultural Economics and Development.  2018, 15(58): 177-203. (In Persian).

 

4- Archibugi D, Pianta M. The Technological Advanced Countries, Areport to the EEC on International Science and Technology Activities. Dortrecht, Kluwer Academic Publisheries. 1992.

5- Asl Roosta R, Moghaddasi R, Hosseni SS. Export Target Markets of Medicinal and Aromatic Plants. Journal of Applied Research on Medicinal and Aromatic Plants. 2017, 7(4): 84-88. https://doi.org/10.1016/j.jarmap.2017.06.003

6- Bahta ST, Jooste A. The Efect of Internationalisation on the Beef and Maize Sub-Sectors: The Relevance of Revealed Comparative Advantage Measures. Agrekon. 2005, 44: 452-464.

7- Bozorghy V, Hosseini M. The Structure of the Global Cement market and the Tariff Regime of Countries in the Trade with this Product. Culture Quarterly (Special Economics). 2008, 66: 79-112, (In Persian).

8- Cai J, Leung P, Loke V. Comparative Advantage of Selected Agricultural Products in Hawai`i: A Revealed Comparative Advantage Assessment. University of Hawai`i. Economic Issues. 2007, 4.

9- Fahimifar J, Fathi Y. Study of Comparative Advantageand Priority of Clothing Export Target Markets of in Iran. Institute for Trade Studies and Research Tehran. 2002. 21(4): 141-174. (In Persian).

10- FAO Statistical Databases, (Food and Agriculture Organization of the United Nations).

11- Hosseini M, Homan T. Study of Date Global Market and Target Markets for Iranian Export Date. Journal of Agricultural Economics and Development. 2007, 15(57): 1-29. (In Persian).

12- ITC, Comtrade Database, PC/ TAS, 2019, 2010, 2017.

13- Ishchukova N, Smutka L. Revealed Comparative Advantage of Russian Agricultural Exports. ActaUniversities Agriculture ET Silviculturae Mendelian Brunensis,. 2013, 4.

14- Karbasi A, Mohammadi H, Kamali F, Mohammadzadeh h. Investigating Iran Position Incum Inglobal Market Structure. 11th Conferances on Iranian Agricultural Economics. 2018. (In Persian).

15- Khodaverdizadeh M, Mohammadi S. Comparative Advantages and Analysis of International Market Structure of Medicinal Plants: Case Study of Anise, Badin, Fennel and Coriander. Agricultural Economics Research, 2017, 9(34): 153-174. (In Persian).

16- Kumar NR, Rai AB, Mathura R. Export of Cucumber and Gherkin from India: Performance, Destinations, Competitiveness and Determinants. Agricultural Economics Research Review, 2008, 21: 130-138.

17- Laursen K. Revealed Comparative Advantage and the Alternatives as Measures of International Specialization. Eurasian Business Review, 2015, 5(1): 99–115.

18- Maddala G, Dobson C, Miller D. Microeconomics, The regulation of monopoly. Mc Grawwhillbook Company, 1995, 10: 185-195.

19- Mahmoodi A, Yavari G, Kalwandy R. Investigating Iran's Situation in the melons and cantaloupe World Market & Screening of business partners. Iranian Journal of Agricultural Economics and Development Research, 2020, 51(2): 295-312. (In Persian).

20- Muendler MA. Balassa, (1965). Comparative Advantage by Sector of Industry, Brazil, (1986-2001). University of California, San Diego. 2007.

21- National Document of Medicinal Plants and Traditional Medicine, 2013.

22- Norani Azad S, Eshaghi Gorji M, Shateri S. Evalution the Structure of Iran’s Food and Beverage Industry: Parametric and Nonparametric Approaches. Quarterly journal of Industrial Economic Researches, 2017, 1(2): 53-64. (In Persian).

23- Rehman Nasir MA, Ashfaq M, Hassan S, Adil SA, Ariyawardana A. Outlook on the Global Trade Competitiveness of Pakistan’s Mandarin Industry: An application of Revealed Symmetric Comparative Advantage Framework. Outlook on Agriculture. 2018, 48 (1): 66-74.

24- Sadeghi S, Khodaverdizadeh S, Khodaverdizadeh M. Comparative Advantage and World Market Structure of Saffron. Agricultural Economics Research. 2011, 3(11): 59-76. (In Persian).

25- Salami H, Pishbahar A. Changes in the Pattern of Pomparative Advantage of Agricultural Products in Iran: An Empirical analysis based on the revealed comparative advantage indices. Journal of Agricultural Economic and Development. 2001, 34(2): 66-99. (In Persian).

26- Secretary of the House of the Supreme Council of the Cultural Revolution. National Document of Medicinal Plants and Traditional Medicine. Supreme Council of the Cultural Revolution, Tehran. 2013. (In Persian).

27- Serin V, Civan A. Revealed Comparative Advantage and Competitiveness: A Case Study for Turkey Towards the EU.  Journal of Economic and Social Research. 2008, 10(2): 24-41.

28- Shemshadi K. Trade of Medicinal Plants and its Products. Agricultural jihad ministry, Planning Research Institute, Agricultural Economy and Rural Development. 2018. https://www.agri-peri.ac.ir/. (In Persian).

29- Shukala UK, Thampy A. Analysis of Competation and Market Power in Thewholesale Electricity Market in India. Energy policy. 2011, 39: 2699-2710.

30- World Health Organization (WHO). WHO Director- General Addresses Traditional Medicineforum. World Health Organization. Retrieved from,  www.who.int/dg/speeches on 2015, Mar.7, 15(25).