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 ...
Read More
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
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 ...
Read More
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.
Agriculture
Mohammadreza Ramezani; Hamed Rafiee; Hossein Norouzi
Abstract
Gonabad township in the Khorasan Razavi province is one of the largest saffron producers in Iran. Unfortunately, the yield of saffron farms in Gonabad has decreased drastically in recent years. Evidence and the opinions of agricultural engineers suggest that high-density planting can be considered as ...
Read More
Gonabad township in the Khorasan Razavi province is one of the largest saffron producers in Iran. Unfortunately, the yield of saffron farms in Gonabad has decreased drastically in recent years. Evidence and the opinions of agricultural engineers suggest that high-density planting can be considered as one of the main reasons of yield decrease. With high-density planting, the operation period of saffron farms will start sooner. However, it will decrease the length of operation period tremendously. Furthermore, the farm will not be suitable for saffron cultivation for a long time. Therefore, the present study was conducted with the aim of investigating the effect of high-density planting on yield of saffron farms and determining the socio-economic factors affecting unsustainable system of high-density planting. Data of the first 6-years of farms (2011-2016) were collected and in order to analyze the data, a two-stage Heckman model which include a Probit model and a linear regression model was used. Our study findings show that farmers' age, awareness towards factors that reduce yield of saffron farms, and attending training courses are three factors that have a negative and significant impact on planting density. In other words, these three factors could prevent planting of saffron in high density. Farmers' income and their level of education are two factors which are considered to have a positive and significant impact on planting density. Finally, crop insurance does not have a significant impact in either one of the two models. Therefore, we strongly recommend that farmers should be warned of factors that cause yield decreases throughout training courses. Also, we recommend using of the experience of old and experienced farmers in order to prevent planting saffron in high densities.
