Ranking of socio-economic variables affecting the bilateral trade of saffron in Iran and business partners

Hendizadeh, Hengame; Karbasi, Alireza; Mohtashami, Toktam; Sahabi, Hossein

doi:10.22077/jsr.2018.1539.1060

Document Type : Original Article

Authors

¹ Graduate student of Agricultural Economics at Torbat Heydarieh University

² Professor and faculty member of Agricultural Economics Department of Ferdowsi University of Mashhad

³ Assistant Professor and Faculty Member of Agricultural Economics Department of Torbat Heydarieh University

⁴ Associate Professor and member of the faculty of Torbat Heydarieh University of Technology

https://doi.org/10.22077/jsr.2018.1539.1060

Abstract

Bilateral trade or Mutual trading or Two-way business is a business that is between two countries and usually under government negotiations. Bilateral trade is generally arranged for political reasons or due to problems that arise in payments. Foreign trade in agricultural products plays an important role in expanding the export and import of various countries due to its high and stable value. Among the agricultural products, saffron is one of the most important export commodities of agriculture, which contributes greatly to the creation of agricultural value added. To maintain Iran's position as the largest producer and exporter of saffron in world markets and to further develop the export of this valuable product, recognizing and determining the importance of the factors affecting it can be an important step in this direction. Therefore, the present study seeks to assess the ranking of socioeconomic variables affecting the bilateral trade of saffron in Iran and its trading partners during the period of 2007-2016. In order to determine the gravity pattern and to determine the importance of effective factors, genetic algorithm is used. The results of the gravity model showed that all variables are meaningful. The variable import volume, transportation cost and distance have a negative impact on bilateral trade. Also, the results of genetic algorithm show that the variables studied in terms of their important factors are among the effective factors on the factors affecting the bilateral trade of saffron in Iran with the trading partners. The numerical size of the self-correlation coefficient statistic also expresses the good coverage of the data using the genetic algorithm.

Keywords

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