Subject Areas : Agricultural Economics Research

Mohammad Omraani ^{1 *} , Zakaria Farajzadeh ²

1 - گروه اقتصاد، دانشگاه آزاد اسلامی واحد زابل
2 - Lecturere of Agricultural Economics in Islamic Azad Unversity-Zabol Branch and PhD of Agricultural Economics

Received: 2012-09-07 Accepted : 2012-12-15 Published : 2013-02-03

Keywords: Market power, Welfare, Agricultural products ,

Abstract :

The aim of this study is to investigate Iranian market power in the selected exporting crops as well as to measure the welfare impacts steming from the market power. The selected crops are rasin, dates, saffron and pistachios. Two spescifications including export price (price reaction function) and import demand function (Lerner index) were applied to measure market power. Welfare impact also was measured using equivalent variation. Panel dataset of 1997-2009 were applied to estimate the functions. Findings of export price specification showed that increase in the Iranina market share results in decrese in export price of the crops. It was alos revesled that the Iranian money depreciation or echange rate increament is expected to raise export prices of the crops. Based on the import demand specification also we found that the Iranian exporters are capble of setting the export prices of rasin, dates, saffron and pistachios higher than the corresponding marginal cost by 3.7, 11.6, 19.1 and 20.3 percent respectively, indicating exertation of market power. Welfare analysis also showed that the exporting agents gain welfare surplus by 12, 18, 26.9 and 26.3 percent of their export value under competitive situation for rasin, dates, saffron and pistachios respectively.

 

 

 

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