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The Welfare Implications of Export Subsidy Policy
for the Pistachio in Iran
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Ali Akbar Baghestany *    , Fatemeh Sakhi , Manuchehr Shahmoradifard |
| Institute for Planning, Agricultural Economics and Rural Development Research |
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Abstract: (17 Views) |
| Export subsidies are considered an important tool for promoting exports, influencing both export supply and stakeholders’ welfare. This study analyzes the welfare effects of granting export subsidies to pistachios in Iran using a panel data approach over the period 2011–2021. The findings indicate that variables such as pistachio production, GDP of importing countries, their import levels (with a one-period lag), and the ratio of global to domestic pistachio production have a positive and significant impact on Iran’s pistachio exports. In contrast, import and export unit prices have a negative and significant effect. On the supply side, domestic production, global exports, export prices, and lagged exports positively affect Iran’s pistachio exports. The results also show that a 1% and 3% export subsidy increases exports by 6% and 8%, respectively. However, the policy mainly benefits foreign consumers and leads to higher domestic prices. Ultimately, the government’s cost of implementing this policy exceeds the combined welfare gains of producers and consumers, suggesting that export subsidies are not an effective strategy for promoting pistachio exports. |
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| Keywords: Pistachio, Trade, Global Market, Support Policy, Export Development |
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Full-Text [PDF 912 kb]
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Type of Study: Research |
Subject:
Special
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