In collaboration Iranian Medicinal Plants Society

Document Type : Research Paper

Authors

1 PhD Candidate of Agricultural Economics, Ferdowsi University of Zabol- Zabol- Iran

2 Assistant Professor and Faculty Member of the Faculty of Agriculture, University of Zabol- Zabol- Iran

3 Assistant Professor and Faculty Member of the Faculty of Economics, Islamic Azad University of Bushehr Branch- Bushehr- Iran

Abstract

Saffron is one of the non -export products that belong to Iran more than half of it global market. In the last two decades, the export price of saffron has been declining. Continuing this process by reducing exports can have important welfare consequences for producers, exporters and consumers. In this regard, the present study aimed to evaluate the welfare effects of saffron export prices in the world market on the aforementioned groups. The analytical tools used include domestic supply and demand functions and export supply, which was estimated by the series data during the period of 1980-2020. The findings of the study indicate a significant effect of reducing export prices on saffron exports. It has been found that the price of exporting producers and exporters is suffering from welfare, but the welfare of domestic consumer's increases, which is far less than the welfare of the two groups. Welfare analysis showed that in the saffron market if the monopoly in the market of these products completely disappeared, the total welfare of the said groups would be reduced by about 53 percent. It is suggested that before the producers are harmed, support programs should be prepared for this group specifically so that in case of changes in the world market, with the support of the product, it will be possible to continue production. Until now, the export price has always been much higher than the domestic price and exporters have been able to make a profit, so to support producers, transferring income from exporters in the form of a production protection fund can be a political solution. This fund can also be used as a tool to reduce the volatility of exporters' income.

Keywords

Main Subjects

AghapourSabbaghi, M. 2019. Investigating the factors affecting the export of Iranian saffron to BRICS countries (Panel data approach). Journal of Saffron Agronomy and Technology 7 (3): 411-420. (In Persian with English Summary).
Aghazadeh, H., Estiri, M., and Asanlou, B. 2017. Investigating the effective components on the competitiveness of Iranian enterprises. Quarterly Journal of Sustainable Growth and Development 7 (3): 17-34. (In Persian with English Summary).
Aminizadeh, M., Karbasi, A., Riahi, A., and Ramezani, M. 2020. Assessing the effect of Iran’s membership in trade agreements on saffron exports. Journal of Saffron Agronomy and Technology 7 (4): 537-549. (In Persian with English Summary).
Aminizadeh, M., Karbasi, A., Riahi, A., and Ramezani, M. 2020. Assessing the effect of Iran’s membership in trade agreements on saffron exports. Journal of Saffron Agronomy and Technology 7 (4): 537-549. (In Persian with English Summary).
Amiri, H., and AminiDaran, M. 2018. Factors affecting diversification of industrial exports in Iran. Iranian Economic Journal: Macroeconomics 13 (25): 65-91. (In Persian with English Summary).
AmiriAghdaie, S.F., and Roshan, J. 2015. Investigating effective factors on Iran’s saffron exportation. International Review of Management and Business Research 4 (2): 590- 600.
Amirtaimoori, S., and Amirtaimoori, S. 2015. The effect of exchange rate uncertainty on Iranian saffron exports. Journal of Saffron Research 4 (2): 199-209. (In Persian with English Summary).
Cho, G., Sheldon, I. M. and McCorriston, S. (2002). Exchange Rate Uncertainty and Agricultural Trade. America Journal of Agricultural Economics, 84(4), 931–942.
Dourandish, A., Aminizadeh, M., Riahi, A., and MehrparvarHosseini, E. 2019. Assessing the role of trade sanctions and global economic crisis on Iran’s saffron exports. Journal of Saffron Agronomy and Technology 6 (4): 499- 511. (In Persian with English Summary).
Durevall, D. 2007. Demand for coffee in Sweden: The role of prices, preferences and market power. Food Policy 32: 566–584.
Fallahi, E., and Mazraeh, F. 2018. Economic analysis of short-term and long-term effects of exchange rate uncertainty on the export of Iranian saffron. Journal of Saffron Agronomy and Technology 6 (3): 367-381. (In Persian with English Summary).
FAO Statistical Database., http://www.fao.org.
Foster-McGregor, N., Isaksson, A., and Kaulich, F. 2016. Importing, productivity and absorptive capacity in Sub-Saharan African manufacturing and services firms. Open Economies Review 27: 87-117.
Hendizadeh, H., Karbasi, A., Mohtashami, T., and Sahabi, H. 2019. Ranking of socio-economic variables affecting the bilateral trade of saffron in Iran and business partners. Journal of Saffron Research 7 (1): 55-67. (In Persian with English Summary).
Hosseini, S., and Jahangiri, Z. 2015. Development of export strategy for agricultural products in Bushehr province. First National Conference on Future Studies, Management and Development, Tehran, Center for the Development of Modern Education in Iran 8 (13): 27-44. (In Persian with English Summary)
International Trade Center. 2020. www.trademap.org.
IsaiahZayone, T., Henneberry, S.R., and Radmehr, R. 2020. Effects of agricultural, manufacturing, and mineral exports on Angola’s economic growth. Energies 13 (6): 1-17.
The Islamic Republic of Iran Customs. 2020. Foreign Trade Statistics of Iran. Publications of the Customs Office of the Islamic Republic of Iran, Tehran. (In Persian).
The Islamic Republic of Iran Customs. 2022. Foreign Trade Statistics of Iran. Publications of the Customs Office of the Islamic Republic of Iran, Tehran. (In Persian).
Karbasi, A., and Rastegaripour, F. 2014. Evaluation of comparative advantage on production and export of saffron. Journal of Saffron Agronomy and Technology 2 (1): 59- 74. (In Persian with English Summary).
Khodaverdizadeh, M., and Mohammadi, S. 2017. Comparative advantages and analysis of international market structure of medicinal plants: Case study of Anise, Badin, Fennel and Coriander. Journal of Agricultural Economics Research 9 (34): 153-174. (In Persian with English Summary).
Koochakzadeh, S., and Karbasi, A. 2015. Study of the effective factors on the commerce of Iranian saffron. Journal of Saffron Agronomy and Technology 3 (3): 217-227. (In Persian with English Summary).
Langley, S.V., Giugale, M., Meyers, W.H., and Hallahan, C. 2000. International Financial Volatility and Agricultural Commodity Trade: A Primer. America Journal of Agricultural Economics 82: 695–700.
Lavergne, P., Requillart, V., and Simioni, M. 2001. Welfare lisess due to market power: Hicksian versus Marshalian measurement. America Journal of Agricultural Economics 83 (1): 157–165.
Mahdinia, M. 2018. Investigation on non-oil export developing obstacles case study (Exporter of Mazandaran province). Research Journal of Economics 2 (3): 1-5.
Marsh, J. 2003. Impacts of declining U. S. retail beef demand on farm-level beef prices and production. America Journal of Agricultural Economics 85 (4): 902–913.
Mehrabi Boshr Abadi, H., and Neshat, A. 2010. Investigation of effective factors on Iran’s comparative advantage in pistachio export and ranking of its target markets. Iranian Journal of Trade Studies 14: 213-233. (In Persian with English Summary).
Ministry of Agriculture-Jihad. 2020. The area under cultivation and the amount of garden products. Agriculture Statistics, http://www.maj.ir. (In Persian).
Mirbagheri, S.SH., Rafiee, H., and Akbarpour, H. 2019. Market structure analysis and export
pattern of Iranian saffron. Iranian Journal of Medicinal and Aromatic Plants 35 (5): 802-818. (In Persian with English Summary).
Mohammadzadeh, H., and Karbasi, A. 2019. The shock effect of oil revenues on the export of
Iran saffron. Journal of Saffron Agronomy and Technology 7 (1): 125-136. (In Persian with English Summary).
Nasabian, Sh., and Jafari, S. 2016. Effect of saffron export on agricultural growth: Case study of Iran and Spain. Journal of Agricultural Economics Research 8 (31): 17-36. (In Persian with English Summary).
Pakravan, M.R. and Gilanpour, A. 2013. A survey of export potential perspective and competitiveness of Iranian agricultural products in the Middle East and North Africa. Journal of Agricultural Economics and Development 27 (1): 48-69. (In Persian with English Summary).
Paseban, F. 2007. Study of effective factors on the export of saffron. Economic Research Journal 6 (12): 1- 15. (In Persian with English Summary).
Rakotoarisoa, M.A., and  Shapouri, S. 2001. Market power and the pricing of commodities imported from developing countries: the case of US vanilla bean imports. Agricultural Economics 25: 285–294.
Rezapoor, S., and Mortazavi, S.A. 2011. Effects of globalization on supply and demand export saffron. Iranian Journal of Agricultural Economics 4 (3): 153-169. (In Persian with English Summary).
Riahi, V., and Azizi, S. 2020. The effects of saffron cultivation on the economy of farmers in the rural areas of Tehran. Journal Space Economy and Rural Development 9 (3): 239-254. (In Persian with English Summary).
Sadeghi, S.K., Khodaverdizadeh, S., and Khodaverdizadeh, M. 2011. Comparative advantage and world market structure of saffron. Journal of Agricultural Economic Research 11: 59-76. (In Persian with English Summary).
Shahabadi, A., and Safaee, M. 2017. Effects of knowledge factors on supply of agricultural exports of Iran. Iranian Journal of Trade Studies 21 (84): 1-26. (In Persian with English Summary).
Taheri Rikandeh, A., Pakravan, M., Gilanpour, A., and Abolghasemi, F. 2016. Assessing Iran's competitiveness in the global market of medicinal herbs and prioritizing export-import Destinations. Journal of Agricultural Economics 10 (1): 153-174. (In Persian with English Summary).
Trade Promotion Organization of Iran. 2021. https://en.tpo.ir/Non–oil-Export
Vijayasri, G. V. 2013. The importance of international trade in the world. International Journal of Marketing Financial Services and Management Research 9: 111-119.