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Examination of the international market power for Iranian pistachios

Author

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  • Farajzadeh, Z.
  • Amiraslany, A.
Abstract
Abstract Iran accounts for more than 50 percent of the world pistachios market and thus has a leading role in price formation of pistachios. The objective of this study is to determine the price transmission pattern between domestic and world markets of pistachio and to investigate the link between market power and asymmetric adjustment. An innovative specification of asymmetric autoregressive model of Pricing to Market (PTM) employed to study the export-domestic price relationship by incorporating the exchange rate in increasing and decreasing components of the PTM model. Results indicate that PTM analysis-based specification is preferable to a simple model that does not cover the exchange rate effect. Also, the empirical findings suggest that export prices are more responding to the exchange rate increases than decrease in the exchange rates. The asymmetric transmission effect of the exchange rate also indicates a possible source of market power exerted by Iranian exporters Acknowledgement :

Suggested Citation

  • Farajzadeh, Z. & Amiraslany, A., 2018. "Examination of the international market power for Iranian pistachios," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277345, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277345
    DOI: 10.22004/ag.econ.277345
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