Economics and Marketing
Sara Baghban Haghighi; Alireza Sani Heidary; Hamed Rafiee; Milad Aminizadeh
Abstract
Agriculture plays a pivotal role in Iran’s economy by increasing production, exports, and employment and supplying food needs. Therefore, according to the country’s strategic goals to develop non-oil exports, saffron has been paid attention as one of the most important agricultural products ...
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Agriculture plays a pivotal role in Iran’s economy by increasing production, exports, and employment and supplying food needs. Therefore, according to the country’s strategic goals to develop non-oil exports, saffron has been paid attention as one of the most important agricultural products due to its high income and currency earnings. However, the exports of this product to target markets have been reduced in recent years. On the other hand, the complexities of the global trade network have led the countries operating in this network to increase their specialization. Import specialization improves the supply chain to provide the food needs of importing countries, which play a key role in trade. Therefore, this study aims to evaluate the specialization pattern of saffron importing countries and analyse its impact on Iran’s exports using the Poisson pseudo-maximum likelihood method over 2001-2017. According to the results, the coefficient of the variable relative import advantage (RMA), as a proxy of import specialization, is positive and significant, thus having a significant effect on Iranian saffron exports. In addition, per capita GDP and population affect Iran’s saffron exports positively and significantly, while the coefficients of geographical distance and food crisis are negative and statistically significant. Therefore, due to the increasing specialization of saffron-importing countries and its significant effect on Iran’s exports, exporters are suggested to focus on close target markets with high per capita income and a high degree of specialization.
Economics and Marketing
Hossein Mohammadi; Milad Aminizadeh; Hanane Aghasafari
Abstract
Export efficiency is the difference between actual exports and potential exports of exporting countries in destination markets, which nowadays measuring the efficiency has considerable importance in terms of export development and their competitiveness analysis. The export of saffron, as the most valuable ...
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Export efficiency is the difference between actual exports and potential exports of exporting countries in destination markets, which nowadays measuring the efficiency has considerable importance in terms of export development and their competitiveness analysis. The export of saffron, as the most valuable agricultural product in the world, is of great importance to Iran, which has decreased in recent years. Therefore, its various dimensions need to be analyzed and evaluated. Due to the lack of a study on the efficiency of saffron exports, this study attempts to measure the export efficiency of Iran in 14 major saffron importers, which accounted for more than 90% of imports. To calculate the efficiency, the data of Iranian saffron exports to destination markets in the period of 2001-2017 have been estimated using a stochastic frontier gravity model. Efficiency results indicated that the efficiency of Iranian saffron exports in 2017 is equal to 0.45. The country analysis shows that Iran has the highest efficiency in Spain (0.93) and the United Arab Emirates (0.87), respectively, and has the lowest efficiency in Japan (0.07) and the United Kingdom (0.13), respectively. According to the results, the efficiency of exports in Asian markets has increased from 0.31 in 2001 to 0.41 in 2017. Considering the positive effect of the Asian regional variable and the negative role of geographical distance on Iranian saffron exports and also the change of the global network of saffron imports from Europe to Asia, it is suggested that Asian markets, which have higher competitive advantages for Iran, be considered by policymakers for saffron exports.
Economics and Marketing
Milad Aminizadeh; Hanane Aghasafari; Alireza Karbasi
Abstract
Theories of international trade have emphasized specialization of countries and have considered this as a prerequisite to gain profit from trade. Iran has experienced a variety of forms of export of saffron as one of its important and valuable products to destination markets, which has made specialization ...
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Theories of international trade have emphasized specialization of countries and have considered this as a prerequisite to gain profit from trade. Iran has experienced a variety of forms of export of saffron as one of its important and valuable products to destination markets, which has made specialization in these markets doubtful. Therefore, this research study seeks to find out whether export of Iranian saffron in the world market and destination markets is moving towards specialization or not? In order to achieve this objective, the revealed comparative advantage index and the specialization pattern were investigated in the period of 2001-2018. The research findings have three main results. First, Iran's saffron exports have been associated with a de-specialization in the world market, and Spain, as Iran's most important export competitor, is on the paths to export specialization. Second, Iran has been specialized in saffron exports for the period 2001-2009 and has experienced a de-specialization in the 2010-2018 period. Third, Iran has been on the path of increasing specialization in only 15 percent of the destination markets (China, India, Hong Kong and Germany), and has a de-specialization in other markets. Because specialization in the destination market goes beyond identifying the demographic components of that market, it is suggested that long-term contracts be concluded with customers to adopt and implement production and marketing policies by further adapting the production and export of Iranian saffron to the culture of consumer markets.
Economics and Marketing
Naser Asiabani; Hamed Rafiee; Milad Aminizadeh; Elham Mehrparvar Hosseini
Abstract
Considering increasing competition in global markets, it is important to have a comprehensive understanding of target markets for market planning. One of the factors influencing international marketing strategies selection is assessment of the market structure in importing countries. Therefore, this ...
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Considering increasing competition in global markets, it is important to have a comprehensive understanding of target markets for market planning. One of the factors influencing international marketing strategies selection is assessment of the market structure in importing countries. Therefore, this study has pursued two main goals of determining the market structure of important saffron importing countries and investigating the effect of this variable on Iranian saffron to further the research literature on saffron export as one of the most important export products of the Iranian agricultural sector. To achieve these objectives, the Herfindahl-Hirschman Index has been used to calculate the market structure and the gravity model has been applied to determine this variable’s impact on Iran's exports over the period of 2001-2017. Market structure results showed that out of the 16 main countries importing saffron, no country had a fully competitive structure and there was a degree of monopoly in all markets. Also, the results of changes in the market structure of saffron importing countries during the period of 2001-2010 and 2011-2017 showed that the market structure of 7 countries Argentina, China, Germany, Japan, Spain, Sweden and the United Arab Emirates have become more monopolistic and 9 other countries have got more competitive structures. According to the results of the gravity model, the market structure of the importing countries has had a significant effect on Iranian saffron exports and the more competitive target markets have caused reduction of Iranian saffron exports. Hence, as saffron target markets become more competitive, it is suggested that exporters pay more attention to improving their competitive components in the markets, especially packaging. In accordance with world standards, packaging should be based on the quality of the product and provide complete information for customers.
Economics and Marketing
Arash Dourandish; Mohammadreza Ramezani; Milad Aminizadeh
Abstract
Increasing factor productivity in the agricultural sector is essential, and with the growing population, the need to invent more productive systems is highlighted. However, agronomic activities have always been accompanied by environmental impacts. Therefore, the two categories of productivity and agricultural ...
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Increasing factor productivity in the agricultural sector is essential, and with the growing population, the need to invent more productive systems is highlighted. However, agronomic activities have always been accompanied by environmental impacts. Therefore, the two categories of productivity and agricultural sustainability should be considered simultaneously. The present study aimed at identifying factors affecting the total factor productivity of saffron farms in Gonabad County with an emphasis on the role of attitude towards sustainable agriculture. In order to achieve the research objectives, 110 questionnaires were completed and after calculating the total factor productivity using the Tornqvist-Theil index, an Ordered-logit model was used to identify factors affecting productivity. The results indicate that attitudes toward sustainable agriculture and income have positive and significant effects on farmers' access to higher levels of productivity, while variable of participation in training courses significantly reduces the probability of achieving higher levels of productivity. Variables of sown area, agricultural insurance and main job do not have significant effects on the probability of achieving different levels of productivity. Undertaking policies which improve attitude of saffron producers towards sustainable agricultural activities and informing them about the effects of unsustainable farming, a fundamental revision of the content of training courses, financial support of farmers for provision of agricultural inputs and reforming the structure of the agricultural insurance system are effective ways to improve productivity of saffron production.
Economics and Marketing
Milad Aminizadeh; Alireza Karbasi; Andisheh Riahi; Mohammadreza Ramezani
Abstract
Developing countries try to attend in trade agreements to achieve safer target markets and reduce trade barriers. Iran also is in trade agreements such as economic cooperation organization (ECO) and global system of trade preferences (GSTP). While there is generally believed that presence in trade agreements ...
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Developing countries try to attend in trade agreements to achieve safer target markets and reduce trade barriers. Iran also is in trade agreements such as economic cooperation organization (ECO) and global system of trade preferences (GSTP). While there is generally believed that presence in trade agreements generally has positive effect on countries trade flows, there is no any guarantee for positive effect on all countries and products. So, due to the importance of saffron exports for Iran, the aim of this paper is to answer the question of whether Iran’s membership in trade agreements has led to increase the saffron exports to member importing countries. For the purpose, gravity model and saffron exports data in the period of 2001-2014 are used. The results showed that income and population of saffron importers has positive and significant effects, while geographical distance and economic crisis has negative and significant effects on saffron exports. Based on the results, Iran’s membership in trade agreements has significantly negative effect (-3.475) on Iran’s saffron exports. In other words, membership in trade agreements cannot lead to increase Iran’s saffron exports to member trading countries in agreements. Therefore, it is suggested that exporting companies of saffron use the opportunities provided by participating in these trade agreements to take appropriate marketing policies and strategies in order to increase Iran's saffron exports to member trading partners in the agreement.
Agriculture
Arash Dourandish; Mohammadreza Ramezani; Milad Aminizadeh
Abstract
Saffron is one of the most important agricultural and export products whose production is the main source of income in many rural areas in east of the country. However, the yield of saffron farms decreased by almost 36% during 1971-2015. The Gonabad county in the Khorasan Razavi province as one of the ...
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Saffron is one of the most important agricultural and export products whose production is the main source of income in many rural areas in east of the country. However, the yield of saffron farms decreased by almost 36% during 1971-2015. The Gonabad county in the Khorasan Razavi province as one of the largest saffron producers in Iran also faces this problem. Evidences suggest that the high use of chemical inputs, especially chemical fertilizers, can be considered as one of the main causes of yield decrease. Therefore, this study aims to investigate the effective factors on use of chemical fertilizers with an emphasis on the role of attitude and awareness of saffron producers. In order to achieve the research objectives, 105 questionnaires were completed based on proportional random sampling and an ordered logit model was carried out. The results showed that two variables of farmers’ attitude towards sustainable agriculture and awareness about yield-reducing factors have negative and significant effects on the probability of chemical fertilizer use. While the variables of farmers’ income, age, education and agricultural insurance have positive and significant effect on the probability of chemical fertilizer use. Therefore, undertaking appropriate policies in order to boost farmers’ attitude towards sustainable agricultural practices and increase the awareness of farmers about the negative and long-term effects of excessive use of chemical fertilizers, encouraging trusted and experienced farmers to reduce the use of fertilizers and reconsidering the content of training courses have a decisive role in enhancing the pattern of chemical fertilizers use.
Economics and Marketing
Arash Dourandish; Milad Aminizadeh; Andisheh Riahi; Elham Mehrparvar Hosseini
Abstract
Saffron is one of Iran’s exports of agricultural products that it could not keep and strengthen its position in the world market at recent years. Two events such as European Union trade sanctions against Iran (2006-2014) and global economic crisis (2007-2009) have directly and indirectly impacts ...
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Saffron is one of Iran’s exports of agricultural products that it could not keep and strengthen its position in the world market at recent years. Two events such as European Union trade sanctions against Iran (2006-2014) and global economic crisis (2007-2009) have directly and indirectly impacts on Iran’s economy and trade flows, respectively. According to process uncertainty about the abolition or continuation of the European Union trade sanctions and the possibility of a new global economic crisis, the aim of this paper is assessing the role of these two factors on Iran’s saffron exports. For this purpose, saffron exports to trading partners were analyzed by using gravity model and poisson pseudo maximum likelihood estimator in 2001-2014 periods. Based on the results, economic size, importer’s income and regional trade agreement have positive effect and distance and difference in GDP per capita have negative and significant impacts on saffron exports. The Results indicated that EU trade sanctions and global economic crisis have significantly negative effects on Iran’s saffron exports. In other words, due to Iran’s trading partners, global economic crisis have important role in saffron exports. Therefore, it is suggested that role of trade sanctions and economic crisis and their importance be considered to adopt long run strategic plan in order to strengthen Iran’s position in saffron world market and optimal basket of trading partners to be selected.
