Measuring the Export Efficiency of Iran's Agricultural Products in ECO Countries: Application of Stochastic Frontier Gravity Model

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Agricultura Economics and Development, University of Tehran Karaj, Iran Professor

2 Ph.D. of agricultural economics, Extension and education science and research branch, Islamic Azad university of Tehran, Tehran, Iran.

3 PhD Candidate of Agricultural Economics, Agricultural Economics Department, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract

The analysis of export efficiency as the performance of the exporting country in achieving the market of a country according to its capabilities has been considered by researchers and policy makers in recent years. Therefore, the purpose of this study is to evaluate the export efficiency of Iran's agricultural products with member countries of the economic cooperation organization (ECO) over three periods. For this purpose, the stochastic frontier gravity model has been used. Based on the results, the variables of economic difference, common border and economic sanctions have had significantly positive effect on Iran's agricultural exports to ECO member countries. The findings of export efficiency indicated that despite the increasing trend of Iran's export efficiency in the market of ECO countries, the amount is not equal to 100 and Iran has not used all its potential capacities. In 2013-2018, the lowest and highest efficiency are related to Kyrgyzstan (20.7) and Afghanistan (29.8), respectively. Accordingly, despite the increase in exports to ECO countries, Iran has encountered with highly unused capacities approximately 70%. Since the highest efficiency and export capacity of Iran is related to countries with common borders, it is suggested that regarding the uncertain political conditions for Iran and its impact on Iran's presence in world markets, exports to ECO countries especially those which have the same border should be considered more than before.

Keywords

Iranian Journal of Agricultural Economics and Development Research

Articles in Press, Accepted Manuscript
Available Online from 05 September 2021

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