Welfare effects of increasing competition in the market of agricultural export products (Case study: Pistachio product)

Document Type : Original Article

Authors

1 PhD Candidate of Agricultural Economics, University of Zabol- Zabol- Iran

2 Assistant Professor and Faculty Member of the Faculty of Agriculture, University of Zabol, Zabol, Iran

3 Assistant Professor and Faculty Member of the Faculty of Economics, Islamic Azad University of Bushehr Branch, Bushehr, Iran

4 Assistant Professor and Faculty Member of the Faculty of Agriculture, University of Jiroft, Jiroft, Iran

Abstract

Pistachio is the most important agricultural export product of Iran, which has been faced with a decrease in exports and competitiveness in the last decade. The welfare effects of increasing competition in the market of agricultural export products is one of the factors affecting the export of goods, including the export of Iranian pistachios to world markets. Continuing this trend by reducing exports can have important welfare consequences for producers, exporters and consumers. In this regard, the present study was conducted to evaluate the welfare effects of reducing the export price of this product in the global market on the mentioned groups. The analytical tools used include domestic supply and demand and export supply functions, which were estimated using time series data for the period 1980-2020. Findings of the study indicate a significant effect of reduced export prices on exports of this product. It was found that with the decrease in export prices, producers and exporters face welfare losses, but the welfare of domestic consumers increases, although this increase is much less than the decline in welfare of the other two groups. It is suggested that to support the producers, the transfer of income from the exporters in the form of forming a production support fund can be a policy solution. This fund can also be used as a means to reduce the fluctuation of exporters' income.

Keywords

Journal of Pistachio Science and Technology
Volume 7, Issue 12
May 2023
Pages 172-189

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History

  • Receive Date: 21 June 2022
  • Revise Date: 14 November 2022
  • Accept Date: 20 November 2022

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