Law of One Price and Integration in Date World Markets

Document Type : Research Paper

Authors

Abstract

Regarding the importance of date export in Iran, in this study, condition of world markets and examining of one price in these markets are investigated for 1961-2008 by using Cointegration approach and Granger causality test. The results show that prices in world markets and between important exporters such as Iran, Tunis, UAE, Iraq and Saudi Arabia are integrated. So it can be claimed that the law of one price exists in world markets. Also there is price integration between date world price and export price as well as long-term one price law in Iran’s export markets. Besides, granger causality test show that Iran’s export markets price affects world prices and the contrary situation is not true. So regarding the conformation of one price law in world date price and Iran’s pace in this market, it is suggested that to keep the situation of Iran among foreign competitors: 1.The condition of world market to be continuously supervised, 2.Through supporting policies specially commercial policies, to improve the quality of products suitable packing, 3. To determine the suitable potential and actual markets, 4. To maintain the situation of Iran in world markets.

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