Investigating and Analysis of Iran’s Agricultural Export Target Markets Efficiency in the Member Countries of the Shanghai Cooperation Organization

Document Type : Original Article

Authors

1 Associate professor and faculty member of Agricultural Planning, Economics and Rural Development Research Institute (APERDRI)

2 Ph.D. of agricultural economics, Science and research Branch. Islamic Azad university of Tehran. Tehran. Iran

3 Ph.D. of agricultural economics. university of Tehran. Tehran, Iran

4 PhD Candidate of agricultural economics. Ferdowsi university of Mashhad, Mashhad, Iran

10.30490/aead.2024.361665.1505

Abstract

Taking advantage of the opportunities created through trade agreements requires market research to identify the potential of target markets. Therefore, this article aims to analyze the agricultural export potential of Iran with membership in the Shanghai Cooperation Organization through the Stochastic Frontier Gravity model in the period 2001-2018. Based on the results, the variables of economic and physical size of trading partners have positive and significant effects, while geographical distance has a negative effect on Iran's agricultural exports. Also, trade freedom and economic difference play an effective role in increasing Iran's agricultural exports to the trading partners of the Shanghai Cooperation Organization. Therefore, it is suggested that exporters purpose the near target markets with higher per capita income and larger population. In the period of 2016-2018, the efficiency of Iran's exports has been in the range of 11.9 to 86.4, which is the lowest efficiency for Uzbekistan and the highest for Pakistan, which shows the significant difference in Iran's market performance in the member countries of this organization. Also, considering the fluctuations in the trade efficiency of each of the target markets in different periods, it is suggested that maintaining trade stability and continuous presence in the target markets in order to brand Iranian products and build trust in business partners should be taken into account in regulating trade relationships and formulating export strategies, by using the capacity of Iran's membership in the Shanghai Cooperation Organization.

Keywords

Main Subjects

Agricultural Economics and Development

Articles in Press, Accepted Manuscript
Available Online from 07 February 2024

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