Estimating the Export Demand Function of Iran's pistachio in Selected Destination Markets
Subject Areas :
Agricultural Economics Research
A. کرباسی
1
,
A.H توحیدی
2
1 - دانشیار گروه مهندسی اقتصاد کشاورزی، دانشکده کشاورزی، دانشگاه فردوسی مشهد
2 - دانشجوی دکتری اقتصاد کشاورزی- بازاریابی محصولات کشاورزی، دانشکده کشاورزی، دانشگاه فردوسی مشهد
Received: 2015-02-25
Accepted : 2015-02-25
Published : 2015-05-22
Keywords:
Iranian pistachio,
panel data,
Export demand,
simultaneous equations system,
Abstract :
For many years, Iran has traditionally been the largest pistachio producer and exporter in the world. In addition, pistachio is considered as one of the important sources of foreign exchange earnings and it has important role in reducing dependence of the public budget on oil revenues. Given the importance of pistachio in the Iran's agricultural economy, it is essential to identify the factors that aaffects pistachio exports. The main purpose of present paper is to estimate the export demand function for Iranian pistachio. Using a panel of seven destination markets (including Australia, France, Germany, Japan, Malaysia, Mexico and Switzerland) over the period 1992–2012 and controlling for the endogeneity of the explanatory variables, error component two stage least squares method is used to estimate export demand function. According to the results, all estimated coefficients are significantly different from zero at the five percent level and have the theoretically expected signs. The results show that long-run elasticity of demand for Iran's pistachio exports with respect to relative prices and real exchange rate changes are considerably greater (in absolute terms) than their corresponding short-run elasticity. The results also suggest that the demand for Iran's pistachio exports is inelastic with respect to real foreign income in both short- and long-run. Thus, with respect to demand conditions in destination markets, it is necessary to reduce marginal cost of Iranian pistachio producers by elaboration and implementation supportive policies.
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