Investigating the effect of export subsidy policy on pistachio and walnut exports in Iran

Document Type : Original Article

Authors

1 Payam Noor university

2 University of Tehran

3 Associated Professor of Agricultural Economics at Payame noor University

4 Department of Agricultural Economics, Payam Noor University, Tehran, Iran

10.30490/aead.2024.362253.1516

Abstract

The development of non-oil exports increases the country's foreign currency income. These revenues, if allocated optimally, can lead the country to economic growth. The agricultural sector is one of the most important and strategic economic sectors of the country, it accounts for a significant share of non-oil exports and has a high currency-earning position. Also, among agricultural products, dried fruit is considered one of the most valuable and demanded export goods of Iran in recent years, therefore. It is very important to support domestic dry fruit production and create a market for its export. In order to increase non-oil exports and support domestic production, governments use various policies, including export subsidies and some trade restrictions. The main purpose of this study is to investigate the effectiveness of the export subsidy policy in relation to the trade of two major export products, pistachio and walnut. Using panel data from 1380-1401, the assumptions of this study were examined with the help of gravity model. The results showed that the export subsidy had a positive and significant effect on the export products. Although the implementation of this policy has faced challenges; Therefore, in order to make the export subsidy payment policy more efficient, it should be allocated between different products and appropriate to the market needs for that product, and this policy should be granted to new exporters in line with the development of the new domestic industry, and international transportation infrastructure should be expanded to strengthen bilateral trade relations.

Keywords

Main Subjects

Agricultural Economics and Development

Articles in Press, Accepted Manuscript
Available Online from 26 February 2024

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