JEL Classification: C33, Q17, L13. Diverse climates, susceptible lands, high preference of domestic and foreign customers to use non-chemical medicines due to the dangerous side effects of chemical drugs and the acceptability and desirability of medicinal plants can make Iran a hub for supplying such products. Considering the significance of medicinal plants export as a factor for earning foreign currency income and developing non-oil export, this study aimed to evaluate the effect of the import market structure of business partners on the Iranian medicinal plants export. For this purpose, the data related to the period 2001-2019 and balanced panel data were used. In addition, the effect of the import market structure in the target countries on the Iranian medicinal plants export was evaluated by estimating the gravity model. The results indicated that the import market structure of the Iranian medicinal plants had a positive effect on the export of this product in Iran. Per capita income and the degree of trade openness in the agricultural sector of the target country have a positive effect while geographical distance and difference in per capita income of Iran with its business partners have a negative effect on the Iranian medicinal plants export. Accordingly, it is suggested that policymakers and marketers consider the degree of competition in the export target markets and apply appropriate policies in line with the components affecting the consumption clusters of the target markets while designing the marketing packages.

Revisione articolo - The Effectiveness of the Iranian Medicinal Plants Export from the Business Partner Market Structure: A Gravity Model Approach. Journal of Agricultural Science and Technology. Tarbiat Modares University, Faculty of Agriculture, Tehran, Islamic Republic of Iran.

Cinzia Barbieri
2023-01-01

Abstract

JEL Classification: C33, Q17, L13. Diverse climates, susceptible lands, high preference of domestic and foreign customers to use non-chemical medicines due to the dangerous side effects of chemical drugs and the acceptability and desirability of medicinal plants can make Iran a hub for supplying such products. Considering the significance of medicinal plants export as a factor for earning foreign currency income and developing non-oil export, this study aimed to evaluate the effect of the import market structure of business partners on the Iranian medicinal plants export. For this purpose, the data related to the period 2001-2019 and balanced panel data were used. In addition, the effect of the import market structure in the target countries on the Iranian medicinal plants export was evaluated by estimating the gravity model. The results indicated that the import market structure of the Iranian medicinal plants had a positive effect on the export of this product in Iran. Per capita income and the degree of trade openness in the agricultural sector of the target country have a positive effect while geographical distance and difference in per capita income of Iran with its business partners have a negative effect on the Iranian medicinal plants export. Accordingly, it is suggested that policymakers and marketers consider the degree of competition in the export target markets and apply appropriate policies in line with the components affecting the consumption clusters of the target markets while designing the marketing packages.
2023
Medicinal plants, import market structure, gravity pattern, Herfindahl-Hirschman Index, Iran JEL Classification: C33, Q17, L13.
Cinzia Barbieri
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1944951
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