Agricultural Economics and Development

Agricultural Economics and Development

Investigating the Effects of Export Subsidy Policy on Pistachio and Walnut Exports in Iran

Document Type : Original Article

Authors
zeinab koorehpazan 1
saeed yazdani 2
Abolfazl Mahmoodi 3
Farid Ejlali 3
jaleh koorkinejad 4
1 PhD Student in Agricultural Economics, Payam Noor University, Tehran, Iran.
2 Professor, Faculty of Agriculture, University of Tehran, Tehran, Iran.
3 Associate Professor, Department of Agricultural Economics, Payam Noor University, Tehran, Iran.
4 Assistant Professor, Department of Agricultural Economics, Payam Noor University, Tehran, Iran.
10.30490/aead.2024.362253.1516
Abstract
Introduction: The development of non-oil exports increases Iran's foreign exchange earnings. 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 fruits are considered as one of the most valuable and demanded export goods of Iran over recent years; so, supporting producers and exporters of these products is very important to produce domestic dried fruit and create a market for their export. In order to increase non-oil exports and support domestic production, governments tend to  use various policies, including export subsidies and some trade restrictions. Therefore, this study mainly aimed at investigating the effectiveness of the export subsidy policy in relation to the trade of two major export products including pistachio and walnut.
Materials and Methods: In this study, using panel data during 2001-2022, the assumptions were examined using gravity model.
Results and Discussion: The study results showed that the export subsidy had a significantly positive effect on the export of the two studied products; in addition, Gross Domestic Product (GDP), population and exchange rate had a significantly positive effect while distance and sanctions had a negative effect on pistachio and walnut exports. 
Conclusion and Suggestions: Since, the implementation of the export subsidy policy has faced challenges, to make the export subsidy payment policy more effective, it should be allocated to different products and be appropriate to the market needs for the same products, 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
Export Development Policies
Export
Pistachio
Walnut
Iran
Gravity Model
Export Subsidy

Subjects

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