Is price discrimination beneficial for Iranian pistachio exporters? Evidence from Iran

Abstract

The possibility of ending oil revenue and the idea of getting rid of oil economy has led policymakers in Iran to focus on increasing non-oil exports, especially agricultural products such as pistachio. Iran is one of the main producer of this product in the world. Also, price discrimination is one of the ways to increase the value and the amount of exporting products. On the other hand, the economy of the country faces with fluctuation in exchange rate? In recent years, exchange rate had experienced many instabilities in Iran and has remarkably increased. One of the most important effects of exchange rate fluctuations is; its effect on exporting price of different products. Exchange rate fluctuations can affect exporting price of different products to different destinations. So, the question in this study is that what the effect of exchange rate variations on exporting price of pistachio is? To do this, this paper examined this issue through the PTM approach among 32 importing countries over the period of 2001-2020. The method which is used is the Panel Data Regression and using fixed effects method for estimating the model. The results show that the hypothesis of the competition market for this product is rejected and exporters can use price discrimination behavior among different destinations. So, policy-makers can gain from the benefits of such a market for other product like pistachio..

Keywords

• Price Discrimination
• Pistachio
• Export Destinations
• Pricing-to-Market
• Covid 19
• Uncertanity

Is price discrimination beneficial for Iranian pistachio exporters? Evidence from Iran

Abstract

The possibility of ending oil revenue and the idea of getting rid of oil economy has led policymakers in Iran to focus on increasing non-oil exports, especially agricultural products such as pistachio. Iran is one of the main producer of this product in the world. Also, price discrimination is one of the ways to increase the value and the amount of exporting products. On the other hand, the economy of the country faces with fluctuation in exchange rate? In recent years, exchange rate had experienced many instabilities in Iran and has remarkably increased. One of the most important effects of exchange rate fluctuations is; its effect on exporting price of different products. Exchange rate fluctuations can affect exporting price of different products to different destinations. So, the question in this study is that what the effect of exchange rate variations on exporting price of pistachio is? To do this, this paper examined this issue through the Pricing-to-Market approach among 32 importing countries over the period of 2001-2020. The method which is used is the Panel Data Regression and using fixed effects method for estimating the model. The results show that the hypothesis of the competition market for this product is rejected and exporters can use price discrimination behavior among different destinations. So, policy-makers can gain from the benefits of such a market for other product like pistachio.

Keywords

• Price Discrimination
• Pistachio
• Export Destinations
• Pricing-to-Market
• Exchange rate
• Covid 19
• Uncertanity

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