Strategic Research Journal of Agricultural Sciences and Natural Resources

Strategic Research Journal of Agricultural Sciences and Natural Resources

Analysis of Export Specialization Pattern of Selected Agricultural Crops in Iran

Document Type : Original Article

Authors
G.R. Soltani 1
S. Yazdani 2
S. Salmanzadeh 3
I. Shahbazi 4
E. Karami 5
I. Malakmohammadi 6
A. Dourandish 7
1 Associate members of I.R. Iran Academy of Sciences and Professor of agricultural economics, Shiraz university
2 Invited members of I.R. Iran Academy of Sciences and Professor of agricultural economics, Tehran university
3 Associate members of I.R. Iran Academy of Sciences and Professor of Agricultural Extension and Education, Shahid Chamran University of Ahvaz
4 Invited members of I.R. Iran Academy of Sciences and Professor of agricultural extension and education, Shahid Beheshti university
5 Associate members of I.R. Iran Academy of Sciences and Professor of agricultural extension and education, Shiraz university
6 Professor of agricultural extension and education, Tehran university
7 Invited members of I.R. Iran Academy of Sciences and Professor of Ferdowsi Mashhad University
10.22047/srjasnr.2022.147426
Abstract
International trade theories have highlighted the importance of specialization of countries to benefit from the global trade network. In addition to foreign currency earnings, the development agricultural exports can play an important role in ensuring food security and improving the level of resilience of agricultural sector in Iran. One of the approaches to analyze export development process is to study export possibilities from the perspective of comparative export advantage and specializing in the framework of advantage dynamics. So the present study seeks to explore the following research question: has the exports of selected Iranian agricultural products (pistachio, saffron, dates, raisin, apple, cucumber and kiwi) has moved towards specialization in the global market? To achieve this goal, we assess the specialization pattern of Iran over the period 2001 to 2017. Findings reveal that all the selected products had a comparative export advantage during the selected period, but none of them has moved towards specialization. In other words, despite having the export comparative advantage, Iran has not have long-term plans to promote exports of selected products in the global market. The analysis in the form of panel data during the two periods of 2001-2009 and 2010-2017 also indicates that the export of selected products do not support dynamism and specialization over time. Regarding the export capacities of Iran's agricultural sector, it is recommended to enter into long-term contracts in the target markets in order to increase the export share of selected products through adaptation and implementation of continuous production and export policies.
Keywords
Iran
Agricultural Exports
Specialization
Revealed Symmetric Comparative Advantage
  1. Arkolakis, C., A. Costinot and A. Rodriguez-Clare. 2012. New trade models, same old gains? The Amer. Econ. Rev., 102(1):94–130.
  2. Balassa, B. 1965. Trade liberalization and ‘revealed’ comparative advantage. The Manchester School of Econ. Social Stud. 32:99–123.
  3. Costinot, A. 2009. On the origins of comparative advantage. J. Intl. Econ., 77:255–264.
  4. Dalum, B., K. Laursen and G. Villumsen. 1998. Structural change in OECD export specialization Patterns: de-specialization and ‘stickiness’. Intl. Rev. Appl. Econ., 12(3):422- 443.
  5. Ervani, E., T. Widodo and M.E. Purnawan. 2019. Comparative Advantage and Trade Specialization of East Asian Countries: Do East Asian Countries Specialize on Product Groups with High Comparative Advantage? Intl. Business Res., 12(2):113-134.
  6. Food and agriculture organization. 2020. Retrieved from: http://www.fao.org/faostat/en/#data
  7. Frantzen, D. 2008. Technology, competitiveness and specialisation in OECD manufacturing. J. Econ. Stud. 35(1):44-68.
  8. Gupta, S.D. 2015. Comparative advantage and competitive advantage: An economics perspective and a synthesis. Athens J. Business Econ., 1(1):9-22.
  9. Halilbasic, M. and S. Brkic. 2017. Export Specialization of South East European Countries in their Trade with the European Union. Economic review - J. Econ. Busin. 15(1):75-87.
  10. Im, K.S., M.H. Pesaran and Y. Shin. 2003. Testing for unit roots in heterogeneous panels. J. Econ. 115(1):53-74.
  11. International Trade Center. 2020. Retrieved from: https://www.trademap.org.
  12. Jayawickrama, A. and S.M. Thangavelu. 2010. Trade linkages between China, India and Singapore: Changing comparative advantage of industrial products. J. Econ. Stud. 37(3):248-266.
  13. Kim, T. and D. Meng. 2015. Dynamic Changes of China’s Export Specialization. Modern Econ. 6:633-641.
  14. Konstantakopoulou, I. and M.G. Tsionas. 2019. Measuring comparative advantages in the Euro Area. Econ. Modelling. 76:260-269.
  15. Laursen, K. 2015. Revealed comparative advantage and the alternatives as measures of international specialization. Eurasian Business Rev. 5(1):99-115.
  16. Levchenko, A.A. and J. Zhang. 2016. The evolution of comparative advantage: Measurement and welfare implications. J. Monetary Econ.78:96-111.
  17. Levin, A., C.F. Lin and C.S.J. Chu. 2002. Unit root tests in panel data: asymptotic and finite-sample properties. J. Econ. 108(1):1-24.
  18. Nunn, N. and D. Trefler. 2014. Domestic institutions as a source of comparative advantage. Handbook. Intl. Econ. 5:263-315.
  19. Quansah, K.A., and W.C. Ahn. 2017. The Effect of the Korea-Australia Free Trade Agreement (KAFTA) on the Korea-Australia Trade Structure. The Asian J. Shipping Logistics. 33(4):229-235.
  20. Rasekhi, S., Z. Sheidaei, and S.P. Asadi. 2016. A causal relationship between trade efficiency and economic efficiency: Evidence from dynamic simultaneous equations models. The J. Intl. Trade. Econ. Dev. 26(4):473-487.
  21. Sanidas, E. and Y. Shin. 2011. Convergence towards the revealed comparative advantage neutral point for East Asia: Similarities and differences between the three countries. Seoul J. Econ. 24(1):21-50.
  22. Van Hoang, V. 2020. Investigating the agricultural competitiveness of ASEAN countries. J. Econ. Stud. 47(2):307-332.
Strategic Research Journal of Agricultural Sciences and Natural Resources
Volume 7, Issue 1
April 2022
Pages 1-16