Effect of Macroeconomic Variables (Domestic production, Relative prices and Exchange rate) on Export of Saffron

Document Type : Research Paper

Authors

1 Tarbiat Modares University of Tehran - Iran

2 Department of Agricultural Economics, Tarbiat Modares University

3 Associate Professor of Agricultural Economics, Tarbiat Modares University

Abstract

Abstract
Saffron is on the export products and Iran is one the main and the largest producer and exporter of the saffron with 88% of the world production. A survey of the approach of global export shows that the increase or decrease in the amount of Iran export directly and abviously influences the global export of saffron and it is affected by the increase or decrease of Islamic republic of Iran export. Thus, in this study, the effects of the changes in products amount on the saffron export have been studied as a result of changes in cultivated area, relative prices and the currency fluctuations. For this purpose, the production fluctuations, export price, export supply of this product based on simultaneous functions using 3sls method for the period of 1351-1395 has been estimated and the obtained cofficients were modeled in the form of mathematical programs. The results show that factors such as the real prices of the currency, domestic production and relative prices affect saffron export of Iran. So that, the change of domestic production as a result of change in crop area and currency rate have positive and noticeable influence on the supply of saffron exports of Iran while the change of relative prices as a result of changes in internal prices negatively effects saffron exports.

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References

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