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
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.
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.
Economics and Marketing
Somayeh Koochakzadeh; Alireza Karbasi
Abstract
Considering the role of the foreign commerce in economic development of the country and the emphasis of economy planners to develop non-oil exports, and also to get released from the single-product economy, it is necessary to pay more attention to one product economy. Among the export products with substantial ...
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Considering the role of the foreign commerce in economic development of the country and the emphasis of economy planners to develop non-oil exports, and also to get released from the single-product economy, it is necessary to pay more attention to one product economy. Among the export products with substantial privilege, saffron is considered as an important product in the economy. This is because of its special position in the occupation of farmers in the agriculture sector and having a considerable exchange income for the country. The importance of saffron as a valuable export product in the country’s economy and also in world economy becomes more obvious now. To keep Iran’s position as the greatest producer and exporter of saffron in world markets and increase the export of this valuable product, a study of the problems of export and its effective factors could be an important step in this case. Therefore, this research studied the effective factors on saffron commerce in Iran during the period of 2001-2013. In this study, the gravity model and the method of economy measuring panel is used. The result showed that the gross internal production and the population of importing countries and exchange rate with coefficients: 1.55, 0.015, and 0.54 have positive and considerable effect on Iranian saffron.
