Estimating the Export Demand Function of Iran's pistachio in Selected Destination Markets

Document Type : Research Paper

Authors

Abstract

For many years, Iran has traditionally been the largest pistachio producer and exporter in the world. In addition, pistachio is considered as one of the important sources of foreign exchange earnings and it has important role in reducing dependence of the public budget on oil revenues. Given the importance of pistachio in the Iran's agricultural economy, it is essential to identify the factors that aaffects pistachio exports. The main purpose of present paper is to estimate the export demand function for Iranian pistachio. Using a panel of seven destination markets (including Australia, France, Germany, Japan, Malaysia, Mexico and Switzerland) over the period 1992–2012 and controlling for the endogeneity of the explanatory variables, error component two stage least squares method is used to estimate export demand function. According to the results, all estimated coefficients are significantly different from zero at the five percent level and have the theoretically expected signs. The results show that long-run elasticity of demand for Iran's pistachio exports with respect to relative prices and real exchange rate changes are considerably greater (in absolute terms) than their corresponding short-run elasticity. The results also suggest that the demand for Iran's pistachio exports is inelastic with respect to real foreign income in both short- and long-run. Thus, with respect to demand conditions in destination markets, it is necessary to reduce marginal cost of Iranian pistachio producers by elaboration and implementation supportive policies.

Keywords

References

  1. انویه­تکیه، ل. (1386). مقایسه مزیت نسبی صادرات سیب ایران با کشورهای عمده صادرکننده این محصول. اقتصاد کشاورزی و توسعه. 15 (58): 203-177.
  2. پهلوانی، م.، دهمرده، ن. و حسینی، س.م. (1386). تخمین توابع تقاضای صادرات و واردات در اقتصاد ایران با استفاده از روش همگراییARDL. فصل­نامه اقتصاد مقداری. 4(3): 120-101.
  3. جیانی، ه. و کوپاهی، م. (1384). تخمین توابع عرضه و تقاضای صادرات زعفران ایران. مجله علوم کشاورزی ایران. 36(3): 580-573.
  4. رضاپور، ث. و مرتضوی، س.ا. (1389). بررسی اثر جهانی شدن بر عرضه و تقاضای صادرات زعفران. مجله اقتصاد کشاورزی. 4(3): 169-153.
  5. زارع مهرجردی، م.ر. و توحیدی ا. (1392). رابطه انتقالی نرخ ارز در بازارهای صادراتی پسته ایران: رویکرد داده­های تابلویی. تحقیقات اقتصاد کشاورزی. 5(2): 185-165
  6. Abdullah, A. (2011). Determinants of Indonesian Palm Oil Export: Price and Income. Trends in Agricultural Economics. 4(2): 50-57.
  7. Ahmed, S.M., Hoque, Md.N. and Talukder, Md.S.I. (1993). Estimating Export Demand Function for Bangladesh: An Application of Cointegration and Error-Correction Modelling. The Bangladesh Development Studies. 21(4): 89-104.
  8. AkhandAkhtar, H. (2009). Structural Change in the Export Demand Function for Indonesia: Estimation, Analysis and Policy Implications. Journal of Policy Modeling. 31(2): 260-271.
  9. Alam, S. (2010). A Reassessment of the Effect of Exchange Rate Volatility on Pakistan's Exports Demand: ARDL Approach. European Journal of Economics, Finance & Administrative Sciences. 21: 77-91.
  10. Arize, A. (1986). The Supply and Demand for Imports and Exports in a Simultaneous Model. Pakistan Economic and Social Review. 24(2): 57-76.
  11. Athukorala, P. (1991). An Analysis of Demand and Supply Factors in Agricultural Exports from Developing Asian Countries.WeltwirtschaftlichesArchiv. 127(4): 764-791.
  12. Athukorala, P. and Riedel, J. (1994). Demand and Supply Factors in the Determination of NieExports: ASimultaneousError Correction Model for Hong Kong. The Economic Journal, 104(427): 1411-1414.
  13. Atique, Z. and Ahmad, M.H. (2004). The Supply and Demand for Exports of Pakistan: The Polynomial Distributed Lag Model (PDL). The Pakistan Development Review. 42(4): 961-972. 
  14. Baltagi, B.H. (2005). Econometric Analysis of Panel Data. 3rd edition. John Wiley and Sons. New York.
  15. Bond, M.E. (1987). An Econometric Study of Primary Commodity Exports from Developing Country Regions to the World. Staff Papers-International Monetary Fund. 34(2): 191-227.
  16. Choudhury, R.Z. (2001). Export Demand Function of Bangladesh: An Econometric Exercise. The Bangladesh Development Studies. 27(3): 67-90.
  17. Farris, P.L. (1971). Export Supply and Demand for U. S. Cattle Hides. American Journal of Agricultural Economics. 53(4): 643-646.
  18. Goldstein, M. and Khan, M.S. (1978). The Supply and Demand for Exports: ASimultaneousApproach. The Review of Economics and Statistics. 60(2): 275-286.
  19. Houthakker, H.S. and Magee, S.P. (1969). Income and Price Elasticities in World Trade. The Review of Economics and Statistics. 51(2): 111-125.
  20. Kabir, R. (1988). Estimating Import and Export Demand Function: The Case of Bangladesh. The Bangladesh Development Studies. 16(4): 115-127.
  21. Khan, M.S. (1974). Import and Export Demand in Developing Countries. Staff Papers-International Monetary Fund. 21(3): 678-693. 
  22. King, A. (1997). From Demand Equations to Two Regimes: The Theoretical Development of Export Models. Bulletin of Economic Research. 49(2): 81-125.
  23. Kumar, S. (2009). An Empirical Evaluation of Export Demand in China. Journal of Chinese Economic and Foreign Trade Studies.2(2): 100-109.
  24. Kumar, S. (2011). Estimating Export Demand Equations in Selected Asian Countries. Journal of Chinese Economic and Foreign Trade Studies.4(1): 5-16.
  25. Mutz, C. and Ziesemer, T. (2008). Simultaneous Estimation of Income and Price Elasticities of Export Demand, Scale Economies and Total Factor Productivity Growth for Brazil. Applied Economics. 40(22): 2921-2937.
  26. Nanang, D.M. (2010). Analysis of Export Demand for Ghana’s Timber Products: AMultivariateCo-Integration Approach. Journal of Forest Economics. 16(1): 47-61.
  27. Pakravan, M.R. and KavoosiKalashami, M. (2011). Future Prospects of Iran, U.S and Turkey's Pistachio Exports. International Journal of Agricultural Management & Development (IJAMAD). 1(3): 181-188.
  28. Seddighi, H.R., Lawler, K.A. and Katos, A.V. (2000). Econometrics: APracticalApproach.Routledge. London.
  29. Warr, P.G. and Wollmer, F. (1996). The Demand for LdcExports of Primary Commodities: The Case of the Philippines. Australian Journal of Agricultural and Resource Economics. 40(1): 37-49.
  30. Wong, K.N. and Tang, T.C. (2011). Exchange Rate Variability and the Export Demand for Malaysia's Semiconductors: An Empirical Study. Applied Economics. 43(6): 695-706.
  31. Yusoff, M. and Baharumshah, A.Z. (1993). The Effects of Real Exchange Rate on the Demand for Exports: ACase of Malaysian Primary. ASEAN Economic Bulletin. 9(3): 338-347.
  32. Zheng, Z., Saghaian, S.H. and Reed, M.R. (2012). Factors Affecting the Export Demand for U.S. Pistachios. International Food and Agribusiness Management Review. 15(3): 139-154.

Files

History

  • Receive Date: 25 February 2015
  • Accept Date: 25 February 2015

Share

How to cite

Statistics