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

Yıl 2022, Cilt: 4 Sayı: 1, 1 - 5, 01.07.2022

Öz

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.

Destekleyen Kurum

No

Teşekkür

No

Kaynakça

  • Anania, G., Bohman, M. and Carter, C.A. (1992). United States Export Subsidies in Wheat: Strategic Trade Policy or Beggar-thy-neighbor tactic. American Journal of Agricultural Economics, 74(3): 534-545.
  • Asgharpour, H., Sojoodi, S. and Aslani Nia, N.M. (2011). Exchange Rate Pass-through to Non-oil Export Price of Iran, The Economic Research, 11(3): 111-34 (in Persian).
  • Asgharpour, Hossein and et al (2017). The Asymmetric Exchange Rate Pass-Through to Import Price Index: The Case Study of Iran, Iranian Journal of Economic Studies, 6(1): 47-64.
  • Azam Zadeh Shouraki, M., Mahmoud Gari, R. and Mortazavi, A. (2011). Study of Iranian Pistachio Exporting Market, Journal of Agricultural Economics Research, 3: 101-116 (in Persian).
  • Dashti, Gh., Khodaverdizadeh, M. and Mohammadrezaei, R. (2010). Analysis of Relative Advantage and Market Structure of Iranian Exporting Pistachio, Journal of Agricultural Economics and Development, 24(1): 99-106 (in Persian).
  • Dogru, T, Isik, C. and Sirakaya-Turk, E. (2019). The Balance of Trade and Exchange Rates: Theory and Contemporary Evidence from Tourism, Tourism Management, 74, 12-23.
  • Farajzadeh, Z. and Esmaeili, A. (2010). Analyzing Price Transmission in Pistachio World Market. Journal of Agricultural Economics and Development, 3.(18): 18, 69-98 (in Persian).
  • Gil-Pareja, Salvador (2002). Export Price Discrimination in Europe and Exchange Rates, Review of International Economics, 10(2): 299-312.
  • Haghighat, J. and Hosseinpour, R. (2010). Exchange Rate pass-through on Iranian Raisins Export, Journal of Economics Science (JES), 37: 33-54 (in Persian).
  • Hosseini, S. and Rafiee, H. (2008). Production and Export Comparative Advantage of Iran’s Pistachio, Agricultural Economics and Development, 22.2: 45-57. (in Persian).
  • Isik, C., Sirakaya-Turk, E. and Ongan, S., (2019). Testing the Efficacy of the Economic Policy Uncertainty Index on Tourism Demand in USMCA: Theory and Evidence, Tourism Economics, doi.org/10.1177/1354816619888346.
  • Jafari, Somayeh and et al, (2014). Studying the Effects of Non-Oil Exports on Targeted Economic Growth in Iranian 5th Development Plan: A Computable General Equilibrium Approach, Iranian Jou. of Economic Studies, 3(1): 111-130.
  • Jin, H. J. and Miljkovic, D. (2008). Competitive Structure of U.S. Grain Exporter in the World Market: a Dynamic Panel Approach, Journal of International Economic Studies, 12(1:, 33- 63.
  • Knetter, M. M. (1995), Pricing to Market in Response to Unobservable and Observable Shocks. International Economic Journal, 9(2): 2, 1-25.
  • Knetter, M.M. (1993). International Comparisons of Pricing to Market Behavior, American Economic Review, 83(3): 473-486.
  • Krugman, P. (1986). Pricing to Market When the Exchange Rate Changes. NBER Working Paper, No. 1926.
  • Najafi, I., Moghaddasi, R. and Zeraat Kish, S.Y. (2016). Examining the Effective Factors on Exporting Price in the Main Pistachio Exporter by Using Global Auto-regressive Model, Journal of Agricultural Researches, 8(3): 193-216.
  • Ongan, S., Isik, C., and Ozdemir, D., (2017). The Effects of Real Exchange Rates and Income on International Tourism Demand for the USA from Some European Union Countries, Economies, 5(4), 51, 1-11.
  • Pall, Z., Perekhozhuk, O., Teuber, R. and Glauben, T. (2013). Are Russian Wheat Exporter Able to Price Discriminate? Empirical Evidence from the Last Decade, Journal of Agricultural Economics, 64(1): 177-196.
  • Petterson, P. M. and Abbott, P.C. (1994). Further Evidence on Competition in the U.S. Grain Export Trade, Journal of Agricultural Economics, Vol. 42(4), 55-60.
  • Pick, D. H. and Carter, C.A. (1994). Pricing to Market with Transactions Denominated in a Common Currency. American Journal of Agricultural Economics, 76(1): 55-60.
  • Pick, D.H. and Park, T.A. (1991). The Competitive Structure of U.S. Agricultural Exports. American Jou. of Agricultural Economics, 73(1): 133-141.
  • Rokotoarisoa, M. A. and Shapouri, S. (2001). Market Power and the Pricing of Commodities Imported from Developing Countries: the Case of US Vanilla Bean Imports, Agricultural Economics, 25(2-3): 285- 294.
  • Varian, Hal R. (2010). Intermediate Microeconomics; a Modern Approach. Norton & Company INC, 8th Edition.
  • Zare’Mehrjerdi, M. and Tohidi, A. (2013). Exchange Rate Pass-through in Iranian Pistachio Export Markets: A Panel Data Approach, Journal of Agricultural Economics Research, 5(2): 165-185 (in Persian).

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

Yıl 2022, Cilt: 4 Sayı: 1, 1 - 5, 01.07.2022

Öz

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..

Kaynakça

  • Anania, G., Bohman, M. and Carter, C.A. (1992). United States Export Subsidies in Wheat: Strategic Trade Policy or Beggar-thy-neighbor tactic. American Journal of Agricultural Economics, 74(3): 534-545.
  • Asgharpour, H., Sojoodi, S. and Aslani Nia, N.M. (2011). Exchange Rate Pass-through to Non-oil Export Price of Iran, The Economic Research, 11(3): 111-34 (in Persian).
  • Asgharpour, Hossein and et al (2017). The Asymmetric Exchange Rate Pass-Through to Import Price Index: The Case Study of Iran, Iranian Journal of Economic Studies, 6(1): 47-64.
  • Azam Zadeh Shouraki, M., Mahmoud Gari, R. and Mortazavi, A. (2011). Study of Iranian Pistachio Exporting Market, Journal of Agricultural Economics Research, 3: 101-116 (in Persian).
  • Dashti, Gh., Khodaverdizadeh, M. and Mohammadrezaei, R. (2010). Analysis of Relative Advantage and Market Structure of Iranian Exporting Pistachio, Journal of Agricultural Economics and Development, 24(1): 99-106 (in Persian).
  • Dogru, T, Isik, C. and Sirakaya-Turk, E. (2019). The Balance of Trade and Exchange Rates: Theory and Contemporary Evidence from Tourism, Tourism Management, 74, 12-23.
  • Farajzadeh, Z. and Esmaeili, A. (2010). Analyzing Price Transmission in Pistachio World Market. Journal of Agricultural Economics and Development, 3.(18): 18, 69-98 (in Persian).
  • Gil-Pareja, Salvador (2002). Export Price Discrimination in Europe and Exchange Rates, Review of International Economics, 10(2): 299-312.
  • Haghighat, J. and Hosseinpour, R. (2010). Exchange Rate pass-through on Iranian Raisins Export, Journal of Economics Science (JES), 37: 33-54 (in Persian).
  • Hosseini, S. and Rafiee, H. (2008). Production and Export Comparative Advantage of Iran’s Pistachio, Agricultural Economics and Development, 22.2: 45-57. (in Persian).
  • Isik, C., Sirakaya-Turk, E. and Ongan, S., (2019). Testing the Efficacy of the Economic Policy Uncertainty Index on Tourism Demand in USMCA: Theory and Evidence, Tourism Economics, doi.org/10.1177/1354816619888346.
  • Jafari, Somayeh and et al, (2014). Studying the Effects of Non-Oil Exports on Targeted Economic Growth in Iranian 5th Development Plan: A Computable General Equilibrium Approach, Iranian Jou. of Economic Studies, 3(1): 111-130.
  • Jin, H. J. and Miljkovic, D. (2008). Competitive Structure of U.S. Grain Exporter in the World Market: a Dynamic Panel Approach, Journal of International Economic Studies, 12(1:, 33- 63.
  • Knetter, M. M. (1995), Pricing to Market in Response to Unobservable and Observable Shocks. International Economic Journal, 9(2): 2, 1-25.
  • Knetter, M.M. (1993). International Comparisons of Pricing to Market Behavior, American Economic Review, 83(3): 473-486.
  • Krugman, P. (1986). Pricing to Market When the Exchange Rate Changes. NBER Working Paper, No. 1926.
  • Najafi, I., Moghaddasi, R. and Zeraat Kish, S.Y. (2016). Examining the Effective Factors on Exporting Price in the Main Pistachio Exporter by Using Global Auto-regressive Model, Journal of Agricultural Researches, 8(3): 193-216.
  • Ongan, S., Isik, C., and Ozdemir, D., (2017). The Effects of Real Exchange Rates and Income on International Tourism Demand for the USA from Some European Union Countries, Economies, 5(4), 51, 1-11.
  • Pall, Z., Perekhozhuk, O., Teuber, R. and Glauben, T. (2013). Are Russian Wheat Exporter Able to Price Discriminate? Empirical Evidence from the Last Decade, Journal of Agricultural Economics, 64(1): 177-196.
  • Petterson, P. M. and Abbott, P.C. (1994). Further Evidence on Competition in the U.S. Grain Export Trade, Journal of Agricultural Economics, Vol. 42(4), 55-60.
  • Pick, D. H. and Carter, C.A. (1994). Pricing to Market with Transactions Denominated in a Common Currency. American Journal of Agricultural Economics, 76(1): 55-60.
  • Pick, D.H. and Park, T.A. (1991). The Competitive Structure of U.S. Agricultural Exports. American Jou. of Agricultural Economics, 73(1): 133-141.
  • Rokotoarisoa, M. A. and Shapouri, S. (2001). Market Power and the Pricing of Commodities Imported from Developing Countries: the Case of US Vanilla Bean Imports, Agricultural Economics, 25(2-3): 285- 294.
  • Varian, Hal R. (2010). Intermediate Microeconomics; a Modern Approach. Norton & Company INC, 8th Edition.
  • Zare’Mehrjerdi, M. and Tohidi, A. (2013). Exchange Rate Pass-through in Iranian Pistachio Export Markets: A Panel Data Approach, Journal of Agricultural Economics Research, 5(2): 165-185 (in Persian).
Toplam 25 adet kaynakça vardır.

Ayrıntılar

Birincil Dil Türkçe
Konular Ekonomi
Bölüm Research Articles
Yazarlar

Seyed-nezamuddin Makiyan 0000-0002-8890-3890

Elahe Mahmoodi

Hossein Karimi 0000-0002-1951-0575

Yayımlanma Tarihi 1 Temmuz 2022
Gönderilme Tarihi 17 Şubat 2022
Yayımlandığı Sayı Yıl 2022 Cilt: 4 Sayı: 1

Kaynak Göster

APA Makiyan, S.-n., Mahmoodi, E., & Karimi, H. (2022). Is price discrimination beneficial for Iranian pistachio exporters? Evidence from Iran. Journal of Ekonomi, 4(1), 1-5.

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