The Determinants and Trade Potentials of Export of the Iran’s shrimp in European Union: Using a Gravity Model

Document Type : Research Paper

Authors

• s.a m
• R. J
• M.H V

Abstract

The objective of this research is analyzing trade potentials of export of the Iran’s shrimp to the member countries of European Union and examining determinant factors that are influential in this process. This research has utilized standard and augmented gravity models. In order to estimate the model, the panel data for European countries over the period of 1991-2011 are used. For explanation of the effects of the determinants, the model has estimated in two scenarios. In the first scenario, in a standard gravity model, estimated the impact of per capita GDP and the geographical distance between the importer and exporter countries. In the second scenario, the impact of sanitary regulation and exchange rates estimated using augmented gravity model. The results indicated that per capita GDP of Iran, the geographical distance between both of the partner countries, exchange rates of importer countries and sanitary regulation imposed by importer countries, had significant negative influence on the export of the Iran’s shrimp to the member countries of European Union. Also, the per capita GDP of importer countries and Iran’s exchange rate had positive influence on the export of shrimp. In addition, the trade potential and trade success in shrimp export to member countries of European Union was evaluated by using standard gravity model. Spain had the highest trade success, by fourfold of available capacities for export, and Germany had the lowest trade success in using the existent capacities.

Keywords

• European Union
• panel data
• Trade Potential
• Gravity Model
• Shrimp

20.1001.1.20086407.1393.6.23.2.6

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