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Factors Affecting Pistachio Export Earnings Instability and its Effect on Agricultural Exports

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  • Mehrjerdi, Mohammadreza Zare
  • Azizi, Asiyeh
  • Korooni, Zahra

Abstract

Among agricultural products in Iran, pistachio is one of the major export products that can produce foreign currency. The present study evaluated factors affecting pistachio export earnings instability and its effect on agricultural export during the studied period. For this purpose, export earnings instability index was calculated using "average absolute difference between export earnings and its trend". The Vector Error Correction Model (VECM) was used for estimating models over period 1973-2010. The results indicated that pistachio commodity concentration index had negative effect, but pistachio product instability and gaps of exchange rate had direct relationship with pistachio export earnings instability. Also, the results of the estimation of agricultural export function indicated that pistachio export earnings instability had negative and significant impact on export agriculture.

Suggested Citation

  • Mehrjerdi, Mohammadreza Zare & Azizi, Asiyeh & Korooni, Zahra, 2016. "Factors Affecting Pistachio Export Earnings Instability and its Effect on Agricultural Exports," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(3), September.
  • Handle: RePEc:ags:ijamad:262571
    DOI: 10.22004/ag.econ.262571
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    References listed on IDEAS

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    1. Wong, Chung Ming, 1986. "Models of export instability and empirical tests for less-developed countries," Journal of Development Economics, Elsevier, vol. 20(2), pages 263-285, March.
    2. Lam, N. V., 1980. "Export instability, expansion and market concentration : A methodological interpretation," Journal of Development Economics, Elsevier, vol. 7(1), pages 99-115, February.
    3. Faiz Bilquees & Tahir Mukhtar, 2011. "Export Instability, Income Terms of Trade Instability and Growth: The Case of India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(39), pages 25-44, March.
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