Investigating Factors Affecting Virtual Water Trade in wheat production Using Gravity Model

Document Type : Research Paper

Authors

1 Graduate student in Economics, Economics Department, Faculty of Literature and Humanities, Ilam University, Ilam, Iran

2 Assistant Professor, Economics Department, Faculty of Literature and Humanities, Ilam University, Ilam, Iran

3 Associate Professor, Economics Department, Faculty of Literature and Humanities, Ilam University, Ilam, Iran

Abstract

Increasing demand for water resources due to population growth and economic development on one hand, and water loss and rainfall reduction, on the other hand, have required attention to the demand for water at macro level and policy making. With regard to the new approach of countries in virtual water trade and according to the Heckcher-Oholian theory (H-O), the study of virtual water trade will provide valuable points for planners and policymakers in the water and agriculture sector. In this study, the factors affecting virtual water trade (VWT) using the gravity model (GM) based on the H-O theory was studied. to this end, using the World Bank and FAO international databases, wheat crop statistics were collected in selected countries over a period of 4 years’ period of 5 years from 1994 to 2013. During the study period, the total volume of imported and exported wheat was 44.1 and 235.7 billion cubic meters, respectively. The highest effect on GM is on wheat cultivar with a coefficient of -2.54. Considering the ineffectiveness of water prices on virtual water trade, it is possible to pay a special attention to the rationale of water pricing in order to differentiate water tariffs.

Keywords

References

  1. Abedi, S., and Tahamipour, M. (2016). Measure and analyze the virtual trade balance of water in the agricultural sector. Iranian Journal of Agricultural Economics and Development, 47-2(4), 805-814. (In Farsi).
  2. Abolhasani, M., Neshat, A,. Alizadeh, A, and Porjafarinejad, A. (2014). Virtual Water Exchange to Improve Water Consumption Efficiency, Case Study of Kerman Province. Iranian of Journal Irrigation and Drainage, 8(2), 325-335 (In Farsi).
  3. Ahadiat, M., Faradaic, H., and Choobchian, sh. (2017). Investigating the Components Effective on Virtual Water Trade Management from Experts' Point of View. Iranian Journal of Agricultural Economics and Development, 48-2(4), 657-679. (In Farsi).
  4. Baghestani, A, A., Mehrabi bashr abate, H., Zaree mehrjerdi, M., and Sherafatmand, H. (2010). Application of Virtual Water Concept in Iranian Water Resources Management. Journal of Iranian Water Resources Research, 6(1), 28-38 . (In Farsi)
  5. Chouchane, H., Krol, S.,M., and Hoekstra, A. (2018). Virtyal water trade patterns in relation to enviromental and socieconomic factors: A case study for Tunisia. Journal of Science of the Total Environment. Pp. 287-297.
  6. Dehghan menshadi, H., and Nikhsokhan, M., H. (2013). Estimation of Virtual Water in the Basin and Its Role in Inter Basin Water Transfer Systems, Journal of Water Resources Engineering, 6, (19), 114-110(In Farsi).
  7. Delbourg, E., and Dinner, Sh. (2014).The Globalization of Virtual Water Flows: Explaining Trade Patterns of a Scarce Resource. The Annual Convention of the International Studies Association. Toronto. Canada.
  8. Falkenmark, M., Lundqvist, J., & Widstrand, C. (1989). Macro- scale water scarcity requires micro-scale approaches. Natural Resources Forum, 13 (4), 258-267.
  9. Fracasso, A. (2014). A gravity model of virtual water trade. Journal of Ecological Economics, 108, 215-228.

10. Ghodusi, H., and Davari, H. (2016). Critical analysis of virtual water from a policy perspective. Journal of Water and Sustainable Development, 3(1). (In Farsi)

11. Hoekstra, A., Y. and Hung, P., Q. (2002). Vittual water trade: A quantification of virtual water flows between nations in ralation to international crop trade, Value of water in IHE. Reasearch Report Series NO. 11, 33-63, From http://waterfootprint.org/media/downloads/Report11.pdf

12. Hoekstra, A. (2018). How to reduce our water footprint to sustainable level?. UN chronicle. Journal of researchgate, March. LV(1). https://www.researchgate.net/publication/324914421

13. J. Liu, P.Wu, Y. Wang, X. Zhao, Sh. Sun, and X.Cao. (2015). Virtual water flows related to grain crop trade and their influencing factors in hetao irrigation district, Journal of Agricultural Science and Technology. 17(12): 201-211.

14. Masoumi, E., Ahmadi, H., and Rezaee moghadam, K. (2018). Analysis of Quar County Farmers' Attitudes toward Water Conservation: Application of Maslow's Theory of Requirements. Iranian Journal of Agricultural Economics and Development, 49-2(1), 135-150. (In Farsi)

15. Moalemi, M. (2015). A Study of the Virtual Water Trading Strategy in Iran Compared to Gulf States. Proceedings of 5th International Conference On Economics Management and Agricultural Sciences Iran. 22 june 2015, Anzali, Iran. (In Farsi)

16. Mousavi,N., S., Akbari, S., Soultani, Gh. and zarea Mehrjardi,M. (2009). Virtual water: a new strategy to deai with the water crisis. National Conference on Water Crisis Management, Islamic Azad University of Marvdasht. 1-3 june 2009. Pp.20-24. (In Farsi)

17. Razavi, S, S., and Davari, k. (2013). The role of virtual water in water resources management.  Journal of Water and Sustainable Development, 1(1), 9-18. (In Farsi)

18. Safi, R, S., and Mirlatifi, M. (2015). Evaluation of sugarcane situation in Khuzestan province from the viewpoint of virtual water. Journal of Water Engineering Magazine, 8(25), 87-96 (In Farsi)

19. Shakeri, A., Omidvar, s. (2008). Test of hechscher-ohlin theory respecting export and import of china. Research Journal Economic, 10(4), 83-103. (In Farsi)

20. Zhang, Yu., Zhang, J, H,. Tian, Q., Liu, Z, H., and Zhang, H, L. (2018). Vittual water trade of agricultural products: A new perspective to explore the Belt and Road. Journal of Science of the Total Environment. Pp. 988-996

21. Mehrara, M., Hemati, A.N., and Sayehmiri, A. (2011).On the reltionship between  water and income in the world. IJAEDR-Volume 42,2(4), 525-533. (In Farsi).

Iranian Journal of Agricultural Economics and Development Research
Volume 50, Issue 3
August 2019
Pages 501-513

Files

Share

How to cite

Statistics