Agricultural Economics

Agricultural Economics

The Relationship Between Production and Export Advantage in The Global Tomato Market and Iran

Document Type : Research Paper

Author
mandana Toossi
Agricultural Planning, Economic and Rural Development Research Institute (APERDRI) وTehran, Iran
10.22034/iaes.2023.2007893.2013
Abstract
The commodity analysis of Iran's agricultural exports during the period 2015-2022 showed that the tomato export, with an average of 758 thousand tons worth 403 million dollars, includes on average about 20% of the export volume and 14% of the export value of the major agricultural goods.Including the production of this product in greenhouses, there are about 6 million tons of tomatoes produced annually. Considering that mostly the amount of surplus production is more than the amount of export of tomato products, it will be important to create a comparative advantage based on production capacity in the country.
In order to determine Iran's position in the world market, the relationship between production and export, the export route of tomatoes, the revealed comparative advantage and revealed symmetric comparative advantage index was estimated for Iran and other main tomato exporting countries. Next, based on the vector auto regressive model and the VEC model , the relationship between the production and the export advantage of tomato in the world was investigated.
The results showed that Iran has a comparative export advantage in tomato export in recent years and has gone through a growing trend in terms of export advantage and has surpassed some competing countries such as Turkey.
Also, the estimation results showed that among the main tomato exporting countries, Iran's export advantage and tomato production in the country have a long-term and significant relationship.
Continuous presence in international markets requires appropriate policies in foreign trade. If Iran adopts this product in order to improve its production and strengthen its relationship with export, it will increase the opportunity to be present in the international market of this product.
Keywords
RCA
Production
Tomato
Export

Subjects

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