The Impact of Turkey Export Subsidy Reduction on Apple Export of Iran

The main objective of this study is to investigate the Impact of the reduction of Turkey's export subsidies on the export of Iran apple product. The reduction of Turkey's export subsidies might indirectly have the Impact on the export of Iran, by increasing the price of Turkey's product. Thus, the differential imports demand systems including Rotterdam model, AIDS model, CBS model, and NBR model are experimentally estimated using the econometric methods based on panel data. To this end, the time series data for export of the apple product of both Iran and Turkey to the target countries including Bahrain, Bulgaria, Egypt, Iraq, Kuwait, Qatar, Romania, Saudi Arabia, UAE, and UK are applied during the period of 1997-2009. The results of the research indicate that reduction or elimination of Turkey's export subsidies has no statistically significant impact on the export of Iran apple. Other factors may have very important role in this regard. These factors can include taste, quality, hygiene, packaging and grading, promotion, appropriate marketing etc.

JEL Classification: H23, C01 Q17

Keywords:
Apples, Iran Export, Turkey's export subsidies, Rotterdam Model, AIDS Model, CBS Model, NBR Model