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
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.
