Economics and Marketing
Seyedhossein Mohammadzadeh; Alireza Karbasi; Hossein Mohammadi
Abstract
Iran's recent years of experience show that the economy's dependence on crude oil sales results in instability of export income. Saffron is one of the important export items of the agricultural and medicinal plants sector, which in recent years has despite the increase in the area under cultivation and ...
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Iran's recent years of experience show that the economy's dependence on crude oil sales results in instability of export income. Saffron is one of the important export items of the agricultural and medicinal plants sector, which in recent years has despite the increase in the area under cultivation and production, the export has not grown in line with it. Khorasan Razavi province is one of the leading provinces in the production and trade of this product. This study aims to present the multidimensional index of export development and examine the factors affecting this index regarding the saffron product in Khorasan Razavi and its trading countries in the period of 2011-2020. The necessary statistics and information were collected from 24 exporting companies active in this field in Razavi Khorasan province and 14 exporting companies in Germany, Italy, India and China by completing a questionnaire. In order to investigate the foreign trade network of saffron and the factors affecting the export development index, a three-dimensional panel model was used. The export development index was measured using the sub-indices of export performance, export management and export strategy. The results showed that the company's history, company size, marketing strategies, export standards, research and development costs, government support policy index, and government foreign diplomacy, value of domestic products, brand development and marketing mixes are among the factors affecting the development index. It is the export of medicinal plants.
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
seyed hosein Mohammadzadeh; Alireza Karbasi; Hossein Mohammadi
Abstract
Recent multi-year experiences in Iran show that reliance on income from the sale of crude oil leads to instability in export earnings. In order to reduce the dependence of the Iranian economy on crude oil exports, export policies should be directed towards export of non-oil ...
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Recent multi-year experiences in Iran show that reliance on income from the sale of crude oil leads to instability in export earnings. In order to reduce the dependence of the Iranian economy on crude oil exports, export policies should be directed towards export of non-oil commodities, including exports of agricultural products. Saffron is one of the most important export items of the agricultural sector and medicinal plants. However, its production and export has not grown exponentially in recent years despite growing allocation of land and production. The results of various studies in have shown that one of the main reasons for failure of Iranian companies in the world market for exporting medicinal herbs is decline in competitiveness in these markets in recent years. Therefore, this study seeks to examine factors affecting competitiveness of Iran's saffron exporting companies in global markets. Competitiveness measurements using symmetric revealed comparative advantage index and analysis of its influencing factors were analyzed using the Porter Diamond Competitive Model and Fractional Logit Panel regression model. The statistics and data were collected through collecting questionnaires from 35 saffron exporter companies for 2011-2016. The results showed that the six components of the Porter diamond model including demand conditions, factor conditions, supporting industries, firm strategy, state and unpredictable events affect the competitive situation of the companies under study. Accordingly, observance of quantitative and qualitative export standards, prevention of fluctuations in the price of saffron, reduction of exchange rate fluctuations in line with government policies, reduction of production fluctuations due to climate change by providing technical solutions and sufficient attention of companies to marketing strategies are proposed as new ways to improve the competitive situation of the companies being studied.
