Iran\'s Position in World Markets of Pistachio and Pistachio Production Relationship with this Position

H. Rafee, E. Barikani (Ph.D.) 

Abstract
Considering the importance and contribution of Iranian pistachio exports about 45 percent of its agricultural exports, in this study, pistachio export advantage against large global rivals and relation between export comparative advantages and production is investigated. This relation is estimated by using Johansen Test and Vector Error Correction Estimated (VECM). Data and information has been gathered from Food and Agriculture Organization (FAO) for 1961-2008. Results show that shock effects on export comparative advantage is adjusted for 1.82 periods that is shorter time than other countries. Although the results suggest advantages in export of Iranian pistachio exports, but it shows that Iran's position in pistachio world markets is being undermined. Take such results in the long run by increasing domestic production, the rate of export advantage has declined, shows Production structure is not consistent with the purposes of export. Therefore, for supporting export advantage in global market policies are suggested to adjust domestic production with export standards.

JEL Classification: Q17, N50

Keywords:
Export Advantage, Domestic Production, Long Run, Pistachio, Iran