Investigating the Effect of Import Market Structure of Iran’s Trading Partners on Pistachio Exports: Application of Gravity Model

Document Type : Research Paper

Authors

1 Agricultural economic department, Ferdowsi university of Mashhad, Mashhad, Iran

2 Agricultural economics department, Faculty of agricultural economics and development, University of Tehran, Tehran, Iran

Abstract

Assessing the import market structure of importers is one of the approaches to determine exporting competitiveness degree in target markets. Despite the extensive background of studies in the field of market structure, but so far no study has looked at the role of the import market structure of partners on agricultural exports in Iran. So, given the importance of pistachio export for Iran, this paper aims to investigate the effect of import market structure of partners on Iran’s pistachio export. For this aim, the effect of import market structure of partners on Iran's exports of pistachios, which accounted for more than 90% of Iran's exports, was evaluated over the period 2001-2016 using the gravity model and balanced panel data. According to the results, increase in concentration ratio of partners had a significantly positive effect on Iran’s pistachio export. In other words, the reduction of competition in import market of target countries leads to increase in Iran’s pistachio exports, while increased competition in the markets has a negative impact on Iran’s export. So, it is suggested that the factors influencing Iran's pistachios exports in target markets with competitive structure should be explored and consumers of these countries should be categorized in order to provide appropriate marketing plans.

Keywords

Iranian Journal of Agricultural Economics and Development Research

Articles in Press, Accepted Manuscript
Available Online from 15 June 2021

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