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 ...
Read More
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 ...
Read More
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.
