Volume 1, Issue 2 (1-2024)
Agric Mark Econ 2024, 1(2): 111-121 |
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Ghebleh P, Khodaverdizadeh M, Molaei M. (2024). What Factors Affect the Export of Medicinal Plants Including Anise, Badian, Coriander and Fennel?. Agric Mark Econ. 1(2), 111-121. doi:10.61186/ame.1.2.111
URL: http://ame.sanru.ac.ir/article-1-63-en.html
URL: http://ame.sanru.ac.ir/article-1-63-en.html
1- Department of Agricultural Economics, Faculty of Agriculture, Urmia University, Urmia, Iran
Abstract: (992 Views)
Extended Abstract
Introduction and Objectives: Fluctuations in oil revenues and the exhaustibility of oil resources have made the country's policymakers and planners believe that development of non-oil exports and diversify the country’s export income is essential in order to reduce the vulnerability of economic development goals. Medicinal plants are one of the most valuable resources in Iran's natural resources. So that if they are used properly and pay attention to their export position in the world, can be useful in the goal of developing non-oil exports. Due to the importance of medicinal plants in Iran non-petroleum export, the the present study was conducted to determine the effective factors on the supply of selected Iranian herbs.
Material and Methods: In this study used Auto Regressive Distribution Lag (ARDL) model. Band test was used to check the existence of long run relationship between variables. Cumulative sum of residuals (CUSUM) and cumulative sum of squared residuals (CUSUMSQ) tests were used to check the stability of the model. The study period of this research is 1978-2016. The data of this study has been collected from different sources, including the Food and Agriculture Organization (FAO) and the Central Bank.
Results: The results of the variables' stationarity showed that all the variables are stationary of degree I(0) or I(1). Therefore, the ARDL model can be used to examine the short-run and long-run relationship. The results of the band test showed that there is a long-run relationship between the variables. The results of long term ARDL model showed that the variables of exchange rate fluctuations, oil exports, and herbs export of rival countries had a negative and significant effect, and the indices of domestic production of Iranian herbs, real exchange rate, the prices of Iranian herbs and the trade liberalization variable had a positive and significant effect on the amount of herbs export
Conclusion: With the increase of oil revenues during the period under review, the export of medicinal plants will decrease. The reason for this could be the government's less attention to the agricultural sector in the conditions of booming oil revenues. Paying attention to the export potentials of the agricultural sector and medicinal plants can be considered as one of the gradual solutions for the exit of the country's economy from the export of crude oil products. Considering the negative effect of exchange rate fluctuations on the supply of medicinal plant exports in the long term, it is necessary to adopt appropriate policies to reduce exchange rate fluctuations and also provide financial support to exporters against exchange rate fluctuations.
Introduction and Objectives: Fluctuations in oil revenues and the exhaustibility of oil resources have made the country's policymakers and planners believe that development of non-oil exports and diversify the country’s export income is essential in order to reduce the vulnerability of economic development goals. Medicinal plants are one of the most valuable resources in Iran's natural resources. So that if they are used properly and pay attention to their export position in the world, can be useful in the goal of developing non-oil exports. Due to the importance of medicinal plants in Iran non-petroleum export, the the present study was conducted to determine the effective factors on the supply of selected Iranian herbs.
Material and Methods: In this study used Auto Regressive Distribution Lag (ARDL) model. Band test was used to check the existence of long run relationship between variables. Cumulative sum of residuals (CUSUM) and cumulative sum of squared residuals (CUSUMSQ) tests were used to check the stability of the model. The study period of this research is 1978-2016. The data of this study has been collected from different sources, including the Food and Agriculture Organization (FAO) and the Central Bank.
Results: The results of the variables' stationarity showed that all the variables are stationary of degree I(0) or I(1). Therefore, the ARDL model can be used to examine the short-run and long-run relationship. The results of the band test showed that there is a long-run relationship between the variables. The results of long term ARDL model showed that the variables of exchange rate fluctuations, oil exports, and herbs export of rival countries had a negative and significant effect, and the indices of domestic production of Iranian herbs, real exchange rate, the prices of Iranian herbs and the trade liberalization variable had a positive and significant effect on the amount of herbs export
Conclusion: With the increase of oil revenues during the period under review, the export of medicinal plants will decrease. The reason for this could be the government's less attention to the agricultural sector in the conditions of booming oil revenues. Paying attention to the export potentials of the agricultural sector and medicinal plants can be considered as one of the gradual solutions for the exit of the country's economy from the export of crude oil products. Considering the negative effect of exchange rate fluctuations on the supply of medicinal plant exports in the long term, it is necessary to adopt appropriate policies to reduce exchange rate fluctuations and also provide financial support to exporters against exchange rate fluctuations.
Type of Study: Research |
Received: 2024/01/11 | Accepted: 2024/02/27
Received: 2024/01/11 | Accepted: 2024/02/27
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