Investigating the Effective Factors on Iran’s Pistachio Export With emphasis on the role of Trade sanctions

Document Type : Research Paper

Authors

• Ali Reza Karbasi ¹
• m a ²

¹ استاد اقتصاد کشاورزی، دانشگاه فردوسی مشهد.

² دانشجوی دکتری اقتصاد کشاورزی، دانشگاه فردوسی مشهد.

Abstract

Pistachio is important agricultural export product in Iran which has faced with reduction in export and competitiveness in last decade. During this period, two phenomena like economic sanctions and emergence of export rival like USA has been most important events. Now, the question is whether these factors and their synchronicity have weakened Iranian pistachios export in recent years? For this purpose, Iranian pistachio exports to trading partners analyzed using gravity model in the period 1995-2013. Based on the results, economic size and importer’s income had increasing effect but distance and economic distance had decreasing effect on export. Also, EU trade sanctions and increase in USA export power have significantly negative effect on export. Therefore, synchronicity of increase in USA export power and EU sanctions has led to exit Iran from EU as main target market of export and USA strengthened its position regarding high economic interactions. So, it is suggested that policymakers should try to identify appropriate target market to avoid the effect of decreasing trade sanctions on Iran's exports and competitiveness in global market.

Keywords

• Trade Sanctions
• Gravity Model
• Poisson Pseudo Maximum Likelihood Estimator
• Pistachio Export
• Iran

20.1001.1.20086407.1398.11.43.1.0

---

References

Antonucci, D., & Manzocchi, S. (2006) Does Turkey have a special trade relation withthe EU?. A gravity model approach. Economic Systems, 30, 157–169.

- Barattieri, A. (2014). Comparative advantage, service trade, and global imbalances. Journal of International Economics, 92, 1-13.

- Caporale, G.M., Sova, A. & Sova, R. (2015) Trade flows and trade specialization: The case of China. China Economic Review, 34, 261–273.

- Cortright, D., & Lopez, G. (Eds.), 2000. The Sanctions Decade: Assessing UN Strategies in the1990s. Lynne Rienner, Boulder, CO.

- Evenett, S.J. (2002). The impact of economic sanctions on South African exports. Scottish Journal of Political Economy, 49(5), 557–573.

- Gani, A. & Scrimageour, F. (2016). New Zealand’s trade with Asia and the role of good governance. International Review of Economics and Finance, 42, 36-53.

- Hufbauer, G.C., Schott, J.J., & Elliott, K. (1990). Economic Sanctions Revisited: Supplemental Case Histories, Washington, DC: Institute for International Economics.

- Hufbauer, G.C., Schott, J.J., Elliott, K., & Oegg, B. (2007) Economic Sanctions Reconsidered, 3rd, Institute for International Economics, Washington DC.

- Hufbauer, G., Schott, J., Elliott, K.A., Oegg, B. (2009) Economic Sanctions Reconsidered: History and Current Policy. Third ed. Institute for International Economics, Washington, DC.

- Hufbauer, G.C., Schott, J.J., Elliott, K.A., Muir, J. & Cosic, M. (2012) Case Studies in Economic Sanctions and Terrorism: Case 2006-1 UN, US (EU) v. Iran, Peterson Institute for International Economics, 1-109.

- Kahouli, B. & Makttouf, S. (2015) the determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model. International Business Review, 24(3), 518-529.

- Lamotte, O. (2012) Disentangling the impact of wars and sanctions on international trade: evidence from former Yugoslavia. Comparative Economic Studies, 54(3), 553-579.‏

- Natale, F., Borrello, A. & Motova, A. (2015) Analysis of the determinants of international seafood trade using a gravity model. Marine Policy, 60, 98-106.

- Neuenkirch, M., & Neumeier, F. (2016) the impact of US sanctions on poverty. Journal of Development Economics, 121, 110–119.

- Paudel, R.C., & Burke, P.J. (2015). Exchange Rate Policy and Export Performance in a Landlocked Developing Country: The Case of Nepal. Journal of Asian Economics, 38, 55-63.

- Popova, L & Rasoulinezhad, E. (2016) Have Sanctions Modified Iran’s Trade Policy? An Evidence of Asianization and De-Europeanization through the Gravity Model. Economies Journal, 4(24), 1-15.

- Santos Silva, J. M. C., & Tenreyro, S. (2006) the log of gravity. Review of Economics and Statistics, 88(4), 641–658.

- Shahnoushi, N., Saghaian, S., & Ashktorab, N. (2011) An Analysis of Aflatoxin Food Safety Concerns and other Factors Affecting Iran’s Pistachio Exports to European Union and Japan. Presented at the 21th Annual World Forum and Symposium, International Food and Agribusiness Management Association (IFAMA), June 20-23, Frankfurt, Germany.

- Taghavi, M, Shayegani, B, Gaffari, F, Monsef, A, & Niakan Lahiji, A. (2012) Does gravity model work for the selection trade partners among SCO members? (The Case Study of Iran). Journal of American Science, 8(10), 747-753.

- Tinbergen, J. (1962) Shaping the world economy: Suggestions for an international economic policy. New York, NY: Twentieth Century Fund.

- Ulengin, F., Cekyay, B., Palut, P.T., Ulengin, B., Kabak, O., Ozaydin, O. & Ekici, S.O. (2015) Effects of quotas on Turkish foreign trade: A gravity model. Transport Policy, 38, 1–7.

- World Band Database. (2016)

- Yang, J., Askari, H., Forrer, J., & Teegan, H. (2004). U.S. Economic Sanctions: An EmpiricalStudy. International Trade Journal, 18(1), 23–62.

- Yang, J., Askari, H., Forrer, J., & Zhu, L. (2009). How Do US Economic Sanctions Affect EU's Trade with Target Countries?. The World Economy, 32(8), 1223-1244.‏

- Zhenga, Z., Saghaian, S., & Reed, M. (2012) Factors Affecting the Export Demand for U.S. Pistachios. International Food and Agribusiness Management Review, 15(3), 139-154.