Agricultural Economics and Development

Agricultural Economics and Development

Measuring Structural Changes in The Preferences of Consumers of Imported Cucumbers in The Russian Federation

Document Type : Original Article

Authors
A. Fatahi ardakani 1
M. Rezvani 2
Y. Bostan 3
F. Sakhi 4
1 Corresponding Author and Associate Professor, Department of Agricultural Economics, Faculty of Agriculture and Natural Resources, Ardakan University, Ardakan, Iran
2 PhD Student in Agricultural Economics, Faculty of Economics and Agricultural Development, Campus of Agriculture and Natural Resources, University of Tehran, Tehran, Iran.
3 PhD Student in Agricultural Economics, Sari University of Agricultural Sciences and Natural Resources, Sari, Iran.
4 PhD Student in Agricultural Economics, Faculty of Economics and Agricultural Development, Campus of Agriculture and Natural Resources, University of Tehran, Tehran, Iran
10.30490/aead.2022.355005.1354
Abstract
Western sanctions against the Russian Federation and the Russian Federation's retaliation in 2014 and sanctions on food imports from the West, including the European Union, the United States, Australia, Canada and Norway, suggest that there may be changes in Russian consumers' preferences for cucumber. Imported from Iran has occurred. The present study tests this hypothesis using a nonparametric method based on the Generalized Axiom of Revealed Preferences (GARP). In this regard, price and quantity data related to the import of Russian Federation cucumbers from Iran and the countries that had the most exports of this product to Russia (Turkey and China); Reviewed for the period 2017-2000. The results of the study show that a significant structural change in the preferences of Russian consumers occurred in 2003 in favor of Iranian cucumber, which indicates the stability and loyalty of Russian consumers to cucumbers imported from Iran. Finally, the political disputes between the Russian Federation and Turkey have provided a good opportunity to develop the export of Iranian products in the market of the Russian Federation. Ensuring the production of quality cucumbers throughout the year and not changing government policies on exports can help increase Iran's share of the Russian Federation market.
Keywords
Koo Test
Rational Choice
Revealed Preference
Russian Agriculture
Sanctions
  1. Bazhenova, T.L. (2011). Features of the Russian model of economic development in the late XIX - early XX century. Bulletin of the Orenburg State University, 127(8): 24-29.
  2. Conover, W.J. (1999). Practical nonparametric statistics (Third Edition). New York: Wiley and Son.
  3. Dehghan Dehnavi, M., Kohzadi, N. and Khalilian, S. (2005). Non-parametric test of revealed preference for rational behavior of consumers: urban households. Iranian Journal of Economic Research, 7(24): 197-211. (Persian)
  4. Demuynck, T., and Seel, C. (2018). Revealed preference with limited consideration. American Economic Journal: Microeconomics, 10(1): 102-31. DOI: 10.1257/mic.20150343.
  5. Diaye, M.A., Gardes, F., and Starzec, C. (2008). GARP violation, economic environment distortions and shadow prices: evidence from household expenditure panel data. Annales d'Économie et de Statistique, 90: 3-33. Available at https://doi.org/10.2307/27739817.
  6. Dong, F. and Fuller, F. (2010). Dietary structural change in China's cities: Empirical fact or urban legend?. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 58(1): 73-91. DOI: 10.1111/j.1744-7976.2009.01159.x.
  7. Egorova, M.C. (2014). Improving energy efficiency as a key area of the conservation of natural capital Russia. Fundamentals Research, 10(9): 2265-2269. (Russian)
  8. Ensan, E. and Salami, H. (2016). Assessing the consistency of consumers' preferences of imported dates in India, before and after international sanctions against Iran: application of nonparametric tests of revealed preferences. 10th Biennial Conference on Agricultural Economics of Iran, Shahid Bahonar University of Kerman. (Persian)
  9. FAO (2017). The trend of cucumber exports from Iran, Turkey and China to Russia. Food and Agriculture Organization (FAO). Available at https://www.fao.org/.
  10. Fathi, H. (2010). Development of Iran's trade with Russia. Tehran: Institute for Trade Studies and Research. (Persian)
  11. Fattahi Ardakani, A., Sakhi, F., Bostan, Y. and Rezvani, M. (2021). Structural break in preferences of Iranian urban and rural milk consumers. Agricultural Economics and Development, 29(2): 87-108. DOI: 10.30490/aead.2021.319195.1117. (Persian)
  12. Fleissig, A.R., Alastair, R.H. and Seater, J.J. (2000). GARP, separability, and the representative agent. Macroeconomic Dynamics, 4(3): 324-342. DOI: 10.1017/S1365100500016035.
  13. Homayounifar, M., and Tavana, H. (2008). Application of revealed preferences methodology for testing rational behavior of rural households. The Economic Research, 8(2): 119-132. (Persian)
  14. Hosseinzad, J. and Pakrooh, P. (2015). Analysis of the structural changes in consumer preferences of red meat and chicken meat in Iran. Journal of Animal Science Research, 26(1): 175-186. (Persian)
  15. ITC (2019).Export statistics of countries: List of products imported by Russian Federation. International Trade Centre (ITC). Available at https://www.trademap.org/Product_SelCountry_TS.aspx?nvpm=1%7c643%7c%7c%7c%7c02%7c%7c%7c4%7c1%7c1%7c1%7c2%7c1%7c1%7c1%7c1%7c1. Retrieved at 17 December, 2021.
  16. Jin, H.J. (2006). Verifying timing and frequency of revealed preference violations and application to the BSE outbreak in Japan. Canadian Journal of Agricultural Economics, 54(1): 139-157. DOI: 10.1111/j.1744-7976.2006.00042.x.
  17. Jin, H.J. (2008). Change in South Korean consumers’ preferences for meat. Food Policy, 33 (1): 74-84. DOI: 10.1016/j.foodpol.2007.05.004.
  18. Jin, H.J. and Koo, W.W. (2003). The effects of the BSE outbreak in Japan on consumers preferences. European Review of Agricultural Economics, 30(2): 173-192.
  19. Kafka, K.I. (2021). Economic theory and economic reality: a continuously dialectic relationship. In: Bridging microeconomics and macroeconomics and the effects on economic development and growth. IGI Global, Chapter 1: 1-26. Business Science Reference. DOI: 10.4018/978-1-7998-4933-9.ch001.
  20. Kocoska, L. (2012). A non-parametric approach to the estimations of critical inputs to economic models based on consumption data. Doctoral Dissertation, PhD Tthesis, School of Mathematical and Geospatial Sciences, College of Science, Engineering and Health RMIT University.
  21. Koo, A.Y.C. (1963). An empirical test of revealed preference theory. Econometrica, 31(4): 646-664. DOI: 10.2307/1909164.
  22. Mehrjou, S. and Shakeri Bostanabad, R. (2019). Investigating the changes in consumer preferences for solid and liquid edible oils (Application of nonparametric test, case study: Fars province). Agricultural Economics and Development, 27(107): 1-21. (Persian) https://dx.doi.org/10.30490/aead.2020.252632.0. (Persian)
  23. Mollayosefi, M. and Hossainzadeh, J. (2017). Examining the change in consumer preferences for the sugar basket. 11th Biennial Conference on Agricultural Economics in Iran. Faculty of Economics and Agricultural Development, Campus of Agriculture and Natural Resources, University of Tehran. (Persian)
  24. Rasolinezhad, E. (2020). Russias economy through time. Tehran. Tehran
  25. Rezvani, M., Bostan, Y., Etghaei, M., and Fattahi Ardakani, A. (2021). Investigation of changes in bread consumers' preferences in urban areas of Iran using WARP and SARP approaches. Journal of Economic Modeling Researck, 11(42): 187-214. Available at http://dorl.net/dor/20.1001.1.22286454.1399.11.42.1.7. (Persian)
  26. Salami, H. and Sadafi Abkenar, S. (2019). A non-parametric approach to specifying changes of preferences German consumers for the Iranian and U.S. pistachios. Iranian Journal of Agricultural Economics and Development Research, 50(1): 79-95. Available at https://dx.doi.org/10.22059/ijaedr.2018.261600.668626. (Persian)
  27. Smeulders, B., Crama, Y., and Spieksma, F.C. (2018). Revealed preference theory: an algorithmic outlook. European Journal of Operational Research, 272(3): 803-815. DOI: 10.1016/j.ejor.2018.04.026
  28. TPO (2014). Statistics of non-oil export of Iran. Trade Promotion Organization of Iran (TPO).Available at https://en.tpo.ir/Non%E2%80%93oil-Export. Retrieved at 17 December, 2020. (Persian)
  29. Varian, H.R. (1982). The nonparametric approach to demand analysis. Econometrica, 50(4): 945-973. DOI: 10.2307/1912771.
  30. Varian, H.R. (2006). Revealed preference. Samuelsonian economics and the twenty-first century, Part I: Analysis of Samuelson's Specific Contributions. Oxford Scholarship online. le at DOI: 10.1093/acprof:oso/9780199298839.003.0007.
  31. World Bank (2020). Population, total – Russian Federation. World Bank: Statistics and Demography Division. Available at https://data.worldbank.org/indicator/SP.POP.TOTL?locations=RU. Retrieved at 17 December, 2021