S. Mohebbi Moshaee; A. Akbari; M. Pahlavani
Abstract
Exchange rate volatility is one of the effective and ambiguous factors in agricultural product export. Considering the importance of agricultural trade to avoid single-product economy, the main aim of this study was to investigate the impact of exchange rate volatility on the Raisin export of Iran during ...
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Exchange rate volatility is one of the effective and ambiguous factors in agricultural product export. Considering the importance of agricultural trade to avoid single-product economy, the main aim of this study was to investigate the impact of exchange rate volatility on the Raisin export of Iran during the years1959-2011. For this purpose, exchange rate volatility index was estimated using Moving Average Standard Deviation (MASD). Then, the impact of exchange rate volatility on the value of Raisin export was examined using Johansen's and Juselius's cointegration method and Vector Error Correction Model (VECM).The results showed that in the long-term and short-term there is a significant relationship between Raisin exports and its main variables (weighted average of Gross income of importers, Wholesale Prices, real exchange rate, Value-added of agricultural sector); as according to the theory it has negative relationship with exchange rate volatility. The error correction coefficient sentence ECM (-1) significantly and its sign was negative as expected. The value of this coefficient is equal to the -0/20 and indicates that about 20 percent of Raisin exports imbalance from its long-term value, after of a period will be Elapse.
M. Pahlavani; S.K. Tayebi; P. Taheri; V. Kalate Arabi
Abstract
In this study, first we evaluate the total amount of support for domestic cotton (AMS) for the years 1988 to 1999. Then, using time series data for the study years, translog cost function was constrained. Having calculated the price elasticity of demand for farm inputs, farmers’ reactions to price ...
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In this study, first we evaluate the total amount of support for domestic cotton (AMS) for the years 1988 to 1999. Then, using time series data for the study years, translog cost function was constrained. Having calculated the price elasticity of demand for farm inputs, farmers’ reactions to price changes due to the price liberalization were identified. The results of study showed that in the whole period of the free exchange rate, production of the cotton crop has been supported . In the year 1992 and between the years 1999 to 2001 the production of cotton has not been supported and the farmers had to pay a hidden tax.
Price elasticity for the inputs including fertilizer, seeds, and water were estimated -0.342, -0.72, and -0.754, respectively. This shows that for every one percent increase in the price liberation, the input decreased less than one percent. The price elasticity for the pesticide input was equal to: -7.614 which presents a significant reduction in the use of pesticide due to the price increase that resulted from liberalization. Ultimately, we suggest that implementing better breeding, farming methods and technologies provides an effective circumstance for domestic producers to compete with their foreign counterparts. Furthermore, the study suggests that due to the high price elasticity of demand for pesticides,, the prices move gradually up with the promotion of biological control of pests and diseases in order to reduce the consumption of poison.
