Study the Agricultural Market Convergence in the D8 and G7 Countries: Gravity Model Approach

Authors

• A Shahabadi
• Y Salmani
• S.A Valinia

Abstract

    Several problems in different stages of pistachios marketing such as the pistachios transportation mode and its time have been effective on pistachios final price and reducing the quality of the final product in Iran. Since the improvement of transportation infrastructure reduces the cost and time, in this study, based on 2010 dada, using spatial equilibrium model with goal of maximizing net social payoff, has been investigated the effect of reducing transportation cost as index of improvement transportation infrastructure on pistachios producers and consumers in Iran. The results showed that improving transportation infrastructure will be reduced the production and export of pistachios and will increase domestic consumption. Also, based on these results, reducing the transportation cost will causes different effects on the supplier and consumers welfare in different situations. But in general, producers^, welfare reduced about 272 million Rials and consumer and total welfare increased by about 2754 and 2482 million Rials respectively. The implementation of this scenario would improve the competitive position pistachios producers in Khorasan-Razavi and Yazd compare to other regions.

Keywords

• Leander Index
• Exchange Rate
• Islamic Countries and the Developed Countries

20.1001.1.20086407.1395.8.32.7.3

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