Determinants of Iran's Export Diversification: Emphasis on the Cost of Entrance to Domestic and Foreign Markets

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Matash Yarahmadi Mohammad; RAFAT MONIREH; TAYEBI SEYED KOMAIL

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Journal Paper

Paper Information

Journal: Iranian Journal of Economic Research Year:2022 | Volume:26 | Issue:89 Page(s): 131-154

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Information Journal Paper

Title

Determinants of Iran's Export Diversification: Emphasis on the Cost of Entrance to Domestic and Foreign Markets

Author(s)

Matash Yarahmadi Mohammad | RAFAT MONIREH | TAYEBI SEYED KOMAIL | Issue Writer Certificate

Keywords

Export Diversification

Foreign Market Entry Costs

Domestic Market entry Costs

Real Effective Exchange Rate

Effective Tariff Rate

Abstract

This paper investigates the factors affecting Export Diversification in Iran. As deducted from heterogeneous trade theory, the main variables of interest in this paper's baseline specification are entry and trade costs. For this purpose, Theil index is calculated for Export Diversification. This index is obtained for ten selected two-digit commodity codes in the HS coordinate system. Then the basic model is introduced and estimated by the generalized least squares (GLS) method. Estimated results show that diversification depends negatively on domestic and Foreign Market Entry Costs. Therefore, reducing the unnecessary rules for setting up enterprises, customs regulations, creating transportation and financial facilities can help to improve the Iran's Export Diversification.

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APA: Copy

Matash Yarahmadi, Mohammad, RAFAT, MONIREH, & TAYEBI, SEYED KOMAIL. (2022). Determinants of Iran's Export Diversification: Emphasis on the Cost of Entrance to Domestic and Foreign Markets. IRANIAN ECONOMIC RESEARCH, 26(89 ), 131-154. SID. https://sid.ir/paper/959999/en

Vancouver: Copy

Matash Yarahmadi Mohammad, RAFAT MONIREH, TAYEBI SEYED KOMAIL. Determinants of Iran's Export Diversification: Emphasis on the Cost of Entrance to Domestic and Foreign Markets. IRANIAN ECONOMIC RESEARCH[Internet]. 2022;26(89 ):131-154. Available from: https://sid.ir/paper/959999/en

IEEE: Copy

Mohammad Matash Yarahmadi, MONIREH RAFAT, and SEYED KOMAIL TAYEBI, “Determinants of Iran's Export Diversification: Emphasis on the Cost of Entrance to Domestic and Foreign Markets,” IRANIAN ECONOMIC RESEARCH, vol. 26, no. 89 , pp. 131–154, 2022, [Online]. Available: https://sid.ir/paper/959999/en

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