Iran's Export Research Articles

The Effect of Energy Carriers Prices on Manufactured Export in Iran, Using Panel Data Model

According to international trade theories, countries attempt to produce and export commodities with their abundant resources. Iran has great energy resources and availability of inexpensive energy input has increased energy consumption per capita in manufacturing sector as well as in consuming sector. Relying on low energy price, manufacturers employ energy-intensive methods for producing and exporting commodities. It follows, then, that sensitivity to changes in energy price in Iran is very high. Employing panel-data model, this study seeks to investigate the intensity of the effects of changes in energy price on the export of manufacturing sector. The findings of this paper indicate that energy price and export are negatively related. Furthermore, those sectors that export a larger proportion of their GDP, due to high consumption of energy, are more sensitive to the changes in energy price.

An empirical study on long-term relationship between total factor productivity and non-oil exports in Iran

Article history: Received May 18, 2013 Received in revised format 28 August 2013 Accepted 1 September 2013 Available online September 1 2013 This paper presents an empirical investigation on the effect of exports of non-oil goods and services on economic growth in Iran over the period 1991-2011 using Vector Autoregressive method. We also analyze the existing causal relationships between total factor productivity and non-oil exports. The results show that total factor productivity has direct and significant relationship with non-oil exports in long-term, it means that if total factor productivity increases, non-oil exports also increases. The results of the survey also indicate that the existing shock on non-oil exports does not have any significant impact on total factor productivity but the incoming shock on total factor productivity reduces non-oil exports during the first period. It also increases non-oil exports during the first period to the fourth period and from the fifth period; it continues until it reduces to a small amount, remains in that amount and eventually disappears.

The Role of Agriculture in Iran's Economic Development

The agricultural sector as one of the most important sectors in the process of development has always had a special status in world economy. However, relative decrease of the share of agriculture over the recent decades often leads one to believe that agriculture can be ignored in favor of those sectors which have a faster progress, whereas, on the contrary, in order to accelerate favorable economic transition agriculture must be encouraged. Therefore, this research seeks to study the role and effect of the agricultural sector in comparison to other sectors such as industry, services, mining and commerce on variables such as GDP, the remnant of bank facilities and credit organizations, total petroleum exports in Iran during the past 15 years. Research methodology is applied and of descriptive-correlational type. Data collection tool is previous documents and evidence. Data analysis method is step-by-step regression. The results of the research indicate that in the first, second and third regression models agriculture respectively has the third, first and second status in regard to level of effectiveness.

An empirical investigation on factors influencing on electronic banking for developing export

Article history: Received January 12, 2013 Received in revised format 30 April 2013 Accepted 12 May 2013 Available online May 14 2013 Developing economy needs appropriate infrastructure in different areas including electronic banking. This paper presents an empirical investigation on important factors influencing electronic banking for developing exports in Iran. The proposed study of this paper designs a questionnaire and distributes it among 200 regular customers who use banking services of various banks in city of Tehran, Iran. Cronbach alpha has been calculated as 0.752 and there are five factors including internet infrastructure, advanced services, usability and information design. The most important sub-criteria include building required culture, customer awareness, the role of government, internet knowledge and compatibility with internet technology. © 2013 Growing Science Ltd. All rights reserved.

An empirical investigation on factors influencing on exporting medicinal plants

Article history: Received January 22, 2013 Received in revised format 26 April 2013 Accepted 20 May 2013 Available online May 26 2013 During the past few years, there have been growing interests on developing medicinal plant industry. This paper presents an empirical study on important factors influencing medicinal plant for developing exports in Iran. The proposed study of this paper designs a questionnaire and distributes it among 310 regular customers who are involved in this industry in city of Tehran, Iran. Cronbach alpha has been calculated as 0.802. In addition, Kaiser-Meyer-Olkin Measure of Samplng =KMO test was also computed and it was about 0.66, which is above the minimum acceptable limit of 0.5. The study uses Scree plot to determine important factors and there are eight factors including environmental issues, export supportive issues, potentials for export, business plan, export plan, structural barriers, competition capability and strategy. © 2013 Growing Science Ltd. All rights reserved.

Date-peat as an alternative in hydroponic strawberry production

Date palm (Phoenix dactylifera) is one of the most important agricultural products for export in Iran. According to published statistics by FAO in 2008, more than 244000 ha of farm lands in Iran have been allocated to palm cultivation. Large amounts of palm wastage are thrown away without any usage annually. By contrast, cocopeat, which is produced from coconut trees, is imported for different purposes per annum. Thus, in order to find an alternative compound to cocopeat, an experiment was conducted with different combinations of palm leaf petioles (date-peat), cocopeat and perlite in hydroponic culture beds for strawberry under controlled conditions. The results showed that the best combination was achieved when a mixture of two parts of perlite, one part date-peat and one part cocopeat resulted in increased fruit yield, fruit number, chlorophyll content and leaf area. Additionally, the highest vitamin C content was observed in 3: 1 ratio of perlite and cocopeat treatment. On the other hand, application of three parts of date-peat + one part of cocopeat and also three parts of cocopeat + one part of date-peat, led to increased total soluble solids however there was no significant difference between mixtures. Nowadays, the growth medium in hydroponic bed mainly consists of mixture of cocopeat and perlite. Presented results suggest that palm wastages (date-peat) could be a good alternative to be partly substitute coconut fiber for strawberries and possibly other hydroponic crops. Key words: Cocopeat, date-peat, perlite, strawberry, hydroponic culture.

Efficient Components on Livestock Products Export in Iran

Iran’s dependence on oil revenues has caused severe impact of commodity price fluctuations on the currency revenues and any reduction in export prices has led into a deficit in the country’s balance of payments. Accordingly, it was in the past years and especially the Second Development Plan that government included encouragement and reducing the country’s dependence on oil revenues in its agenda. The international agricultural exports, especially exports of live-stock and poultry country subdivision have a proper status due to its relative advantage. Therefore, in this study factors affecting the supply of exportable animal products are considered. For this purpose, factors affecting exports of live-stock products are studied by using Cointegration Analysis based on statistical intervals in 1984-2008. Experimental results showed that the value of income per capita importer countries of Iran and the real exchange rate had a positive effect on export demand and the added value and export price index had a negative impact on exports of livestock sector.

Export Comparative Advantage Analysis of Iranian Hen Egg by RCA & RSCA and RC Criteria

The potential impact of a liberalization of global trade on developing nations is a controversial subject. The liberaliza-tion of global agricultural trade, in particular, has been the focus of the debate for many years now and is part of the current WTO negotiations. Trade policies are believed to have influenced a country’s comparative advantage. Comparative advantage as a concept for evaluating the patterns of trade, is widely accepted and often used in theoretical and policy discussions. Livestock and livestock products, in the global trade, account for about one sixth, by value, of all agricultural trade. Iran is the one of main producers of hen egg in the world (FAO, 2004). Higher-than-global cost prices are the main disadvantage of the Iranian hen egg industry. The industry comprises of 700 million broiler day-old chicks, 10 million broiler breeders and 50 million layer day-old chicks. Hen egg is one of the Livestock products which are part of the non-oil export in Iran and its export consistently faces with fluctuation during last years. This paper looks at the performance of hen egg export and examines the comparative advantages indices like: revealed comparative advantage (RCA), revealed symmetric comparative advantage (RSCA) and (revealed competitive advantage(RC) for Iran and world main producers over the period 1990-2005. The source of data from 1990-2005 are supplied by F.A.O (2006). The changes in Iran’s export structure were compared with main producers ones. The results of the research showed, the trade and production policies and economic behavior of producers and exporters have been in such a way that they could not show a appropriate and timely response of world, also the re-vealed instabilities in the trends of RCA, RSCA and RC indices during the study period led to the conclusion that there is no well defined strategy and plan for utilization of low price production factors, effectiveness human power, knowledge of bargaining power and target markets. The objective of this paper is to try to identify: 1) The export comparative advantage of Iranian hen egg; 2) Its changing during the time; 3) The comparative advantage of Iranian hen egg in competition with other countries which are famous in trade and production of hen egg.

A Study Examining the Effect of Pistachio Export in Iran

Pistachio is one of the most important agricultural sector products in Iran. This product is important because of creating exchange, employment, value added and other economic conditions. The purpose of this study is to determine the relationship between pistachio export and economic growth in Iran. The theoretical framework was designed based on this assumption that the total production in the economy is divided into two sections: production for inside and production for export. The data were collected from 1990 to 2003 and were analyzed using Auto Regressive Distributed Lag (ARDL) model. The result of the analyses showed that there was significant relationship between pistachio export and economic growth. Together the independent variables explained 89% of the variance in the dependent variables. The remaining 11% was due to unidentified variables. In relation to that, we can conclude that explanatory power is high for the equation. It showed that one percent change in pistachio export rate lead to 38% in economic growth. Therefore pistachio export is regarded as an important factor in Iran's economic growth.

A Study Examining the Effects of Oil Export in Iran

The effect of increasing oil incomes on oil exporter countries is the main issues of political economy. Generally and especially about Iran can be recognized this effect in the government spending method, economic structure and behavior of government within the country. Since oil incomes aren’t result of the performance of economic activities, consequently increasing does not show the real economic prosperity. The purpose of this study is to determine the relationship between oil exports and economic growth in Iran. The data were collected from 1961-2006 and were analyzed using Cointegration, Error Correction Model, and VEC Granger causality/Wald Exogeniety model. The result of the analyses showed that there was significant relationship between oil incomes and economic growth. It showed that increasing in oil price rate lead to increasing in the government costs consequently it affect on the exchange rate and lead to increasing in real exchange rate. Therefore oil incomes are regarded as an important factor in Iran's economic growth.

Analysis of Iran's crude oil export future capacity

The paper analyzes Iran's oil export capacity and the factors affecting it. First, the local energy demand is reviewed and crude oil, with 5.7% annual growth rate, is introduced as a major source to respond to the increasing domestic energy demand. Then, the national plans for controlling the local demand and replacing oil with other types of energy carriers are reviewed to create a view over the future of local demand for crude oil in Iran. In the next step, crude oil production and exploration situation in Iran are investigated and the required increase in production to maintain the present level of export is calculated. By estimating the average capital expenditures for adding each barrel of new capacity to Iran's daily oil production, the necessary annual investment to compensate the production drop and domestic consumption growth for maintaining the export is introduced. Then, the future of oil export in Iran is predicted in three optimistic, reference, and pessimistic scenarios on the basis of the country's ability in managing the financial resources in upstream oil industry. Finally, domestic and foreign investment and the history of buyback contracts and their undeniable role in development of Iranian oil and gas projects are discussed.

The Iranian petroleum crisis and United States national security

The U.S. case against Iran is based on Iran's deceptions regarding nuclear weapons development. This case is buttressed by assertions that a state so petroleum-rich cannot need nuclear power to preserve exports, as Iran claims. The U.S. infers, therefore, that Iran's entire nuclear technology program must pertain to weapons development. However, some industry analysts project an Irani oil export decline [e.g., Clark JR (2005) Oil Gas J 103(18):34-39]. If such a decline is occurring, Iran's claim to need nuclear power could be genuine. Because Iran's government relies on monopoly proceeds from oil exports for most revenue, it could become politically vulnerable if exports decline. Here, we survey the political economy of Irani petroleum for evidence of this decline. We define Iran's export decline rate (edr) as its summed rates of depletion and domestic demand growth, which we find equals 10-12%. We estimate marginal cost per barrel for additions to Irani production capacity, from which we derive the "standstill" investment required to offset edr. We then compare the standstill investment to actual investment, which has been inadequate to offset edr. Even if a relatively optimistic schedule of future capacity addition is met, the ratio of 2011 to 2006 exports will be only 0.40-0.52. A more probable scenario is that, absent some change in Irani policy, this ratio will be 0.33-0.46 with exports declining to zero by 2014-2015. Energy subsidies, hostility to foreign investment, and inefficiencies of its state-planned economy underlie Iran's problem, which has no relation to "peak oil."

Is monetary discipline a precondition for the effectiveness of Iran's export promotion policies?

In the last decade, Iranian authorities have implemented a number of trade reforms and export stimulating policies. They have also tried to stabilise the dollar exchange rate and eliminate the black market premium. These policies have had little, if any, lasting favourable effect on non-oil exports. One conjecture may be based on the inconsistency of their monetary policy: as money supply is used independently − without any regard for trade reforms and export promoting policies − to accommodate government's fiscal needs, its inflationary consequences undermine export incentives. We use 1982:Q1-2000:Q2 data to estimate the response of exports to a one- off rise to money supply and find that the results support the above conjecture.

The Future of Economic Integration within the Arab World

I. INTRODUCTION Like many other topics concerning the Middle East, intraregional trade will be greatly affected by the massive inflows of capital into the oil-producing states during the coming years. The history of such trade has been examined in detail before.' The region has even embarked on ventures designed to promote the move- ment of goods within the area, such as the erstwhile Syrian-Lebanese Customs Union and the Economic Unity Agreement of I964, which envisaged the develop- ment of an Arab Common Market. We believe, however, that the momentous changes occurring at this time throughout the region require that questions regard- ing the likely future of any Middle Eastern economic union be reconsidered. Spe- cifically, we propose to examine the prospects of economic integration in the region from Libya to the Persian (or Arab) Gulf. We begin by presenting a profile of the region's trade-dollar volume, principal commodities, and changes during recent years up to the increase in oil prices; then we project the data forward to consider the possible benefits and drawbacks of integration for individual nations. The formation and functioning of a successful customs union or common market is clearly dependent on each member country reaping some benefit. The likelihood of the survival and development of the union would also increase if such benefits or gains were more or less equally shared by all the member nations.2 As a result, it is important to explore the possible benefits of an Arab customs union and evaluate the chances and problems of its success in relation to the present and future eco- nomic situations of each of the likely members. In the normal textbook analysis of a customs union, several effects are con- sidered. First, following the elimination of trade barriers between the members, there will be an increase in trade. This increase in consumer surplus and the pro-