Analysis of factors affecting sugar import with emphasis on the role of research and development budgets

Document Type : Scientific - Research

Authors

1 PhD student of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran.

2 Assistant Professor of Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran.

3 Professor of Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran.

Abstract

Importing has long been a means to obtain products at the lowest possible cost and to regulate market. Considering the importance of international trade, analyzing and recognizing the country's trade relations and evaluating its obstacles or incentives, have an effective role in the flow of trade. Research and development, innovation and technology as the most important factors that create advantage, play a significant role in the formation of business patterns. In this study, the effective factors on sugar import have been evaluated with an emphasis on the role of research and development in the form of VECM model in the time period of 2001-2019.  According to the results, research and development, the domestic sugar price to imported sugar ratio, sugar beet production, exchange rate, and annual rainfall have a negative and significant effect on sugar import. Also, the variable of oil revenues has a positive effect on the amount of sugar import. The variable coefficient of error correction model (ECM) indicates that 31% of short-term shocks will be adjusted in each period. Therefore, in case of short-term shocks, more than three time periods will be needed to adjust the effects of these shocks. Considering the negative effect of research and development variables on imports, special attention is recommended to applied studies that result in increased productivity through irrigation systems, improved seeds, and new machinery.

Keywords

References

Abeliansky AL, Hilbert M. Digital technology and international trade: Is it the quantity of subscriptions or the quality of data speed that matters? Telecommunications Policy. 2017; 41(1): 35-48.
Aghion Ph, Blundell R, Griffith R, Howitt P, Prantl S. The effects of entry on incumbent inovation and productivity. The review of economics and statistics. 2009; 91(1): 20–32.
Aghion Ph, Christopher H, Howitt P, Vickers J. Competition, imitation and growth with step-by-step innovation. Review of Economic Studies. 2001; 68(3): 467–492.
Anonymous. Iran sugar statistic. Iranian Sugar Factories Syndicate website (www.isfs.ir); 2020.
Azerbaijani K, Taybi SK, Safadgiri H. The effect of EU and US economic sanctions on bilateral trade between Iran and its major trading partners: Application of the gravity model. Economic Research. 2015; 50 (3): 539-562.
Bernard AB, Jensen JB, Lawrence RZ. Exporters, jobs, and wages in US manufacturing: 1976-1987. Brookings Papers on Economic Activity. Microeconomics. 1995; 67-119.
Brodzicki T, Sledziewska K. The role of technology gap in the trade of Poland: Panel estimation in the gravity framework. International Business and Global Economy. 2016; 35(1): 325–341.
Brodzicki T. The role of technology gap in the trade of Poland. Panel estimation in the gravity framework. Collegium of Economic Analysis Annals. 2016; 41: 127-144.
Brodzicki T, Kwiatkowski J. An empirical investigation into the role of technology gap in the trade relations of the EU member states. Entrepreneurial Business and Economics Review. 2018; 6(2), 111-135.
Damijan JP, Knell K. How important is trade and foreign ownership in closing the technology gap? Evidence from Estonia and Slovenia. Review of World Economics. 2005; 141 (2): 271- 295.
Elahi M, Masoomzadeh A, Kiahosseini SD, Arabi SH. Investigating the potential effects of the trade agreement between Iran and the Eurasian Economic Union on the export sectors of industry and agriculture; An Approach to the Attraction Model. Economic Growth and Development Research. 2020; 10 (40): 1-23. (in Persian with English abstract)
Elmawazini Kh. Economic globalization and the technology gap between nations. The Atlantic Economic Journal. 2011; 39:97–98.
Farzam H, Ansari H, Mahmoudi Z. Investigating the short-term and long-term effects of the exchange rate on bilateral trade between Iran and European and Asian partners. Financial and Economic Policy Quarterly. 2017; 5 (19): 81-103. (in Persian with English abstract)
Fomby T. How to model multivariate time series data. Department of Economics, Southern Methodist University Dallas, USA. 1998.
Gilanpour A, Pakravan M, Taheri Rikandeh A. Analysis of the structure of Iran's agricultural imports with emphasis on exchange rate instability (application of EGARCH and VECM methods). Iranian Agricultural Economics and Development Research. 2016; 47 (4), 785-804. (in Persian with English abstract)
Guillochon B. The economic approach to bilateralism and multilateralism in international trade between bilateral and multilateral, AID (Association of International Economic Law) ed., Brussels, Editions Larcier. 2010.
Hamdi Holasoo F, Saremirad A, Khosravani S, Hajisoltani M. Annual Report of Sugar Beet Seed Institute. Chapter 2. No. 61166; 2022. (in Persian)
Hendizadeh H, Karbasi AR, Mohtashami T, Sahabi H. Ranking of socio-economic variables affecting the bilateral trade of Iranian saffron and trading partners, Saffron Research. 2019: 7 (1):67-55. (in Persian with English abstract)
Ivanov V, Kilian L. A practitioner’s guide to lag order selection for VAR impulse response analysis, Studies in Nonlinear Dynamics and Econometrics. 2005; 9(1): 1-36.
Jani S. Analysis and study of the effect of market structure on technology gap in Iranian factories. Quarterly Journal of Economic Research and Policy. 2015; 23 (76): 7-32.
Johansen S, Juselius K. Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics. 1990; 52: 169-210.
Kathuria V. Does the technology gap influence spillovers? A post-liberalization analysis of Indian manufacturing industries. Oxford Development Studies. 2010; 38(2): 145- 170.
Kazemnejad M. Economic analysis of the relationship between exchange rate and sugar prices and its effect on sugar beet production. Journal of Sugar Beet. 2021; 36(2) 213- 222.
Malikane C, Chitambara P. Foreign direct investment, productivity and the technology gap in African economies. Journal of African Trade. 2017; 4(1-2). 61-74.
 
Najafi P, Fehresti Sani M, Bostan Y, Fattahi Ardakani A. Estimation of Iran's sugar import demand function (ARDL approach). Journal of Sugar Beet, 2019: 35 (2). (in Persian with English abstract)
Nakamura T. Foreign investment, technology transfer, and the technology gap: A Note. Review of Development Economics. 2002; 6(1):39–47.
Norouzi H, Hossein SS, Ansari V. Investigating the effects of macroeconomic variables and support policy on the growth of the agricultural sector in Iran. Iranian Journal of Agricultural Economics and Development Research. 2018. 49(4): 587-605. (in Persian with English abstract)
Oliveira PRS, Silveira JMFD, Bullock DS. Innovation in GMOs, technological gap, demand lag, and trade. Agribusiness. 2013: 36(1), 37-58.
Ovhadi S, Taybi K, Vaez M. The impact of technology gap on Iran's bilateral trade relations: A quasi-parametric approach. Journal of Economics and Modeling. 2017; 8 (31): 1-26.
Phillips PC, Ploberger W. Posterior odd testing for a unit root with data-based Model selection. Econometric Theory. 1994:10: 774-808.
Rafiee H. Hashemi Dashtaki SF. Estimating the relationship between sugar import and sugar beet production in Iran during 2001-2009. Journal of Sugar Beet. 2021; 36 (2). (in Persian with English abstract)
Sawada N. Technology gap matters on spillover. Review of Development Economics. 2010; 14(1): 103–120.
Shirmohammadi P. Investigating the effects of R&D on trade. Master Thesis. Faculty of Economics, Razi University. Kermanshah. Iran. 2012. (in Persian)
Soderbom M, Teal F. Trade and human capital as determinant of growth, Department of Economics, University of Oxford. 2003.
Strategic Plan of the Ministry of Industry. Mines and trade, deputy of planning and planning, second edition. 2017.
Viner J. Studies in the theory of international trade. Routledge. 2016.
World Bank. Annual Reports. Economic indicators. Years (1970-2019). 2019.
Zarzoso IN, Ramos LM. International trade technological innovation and income: A gravity model approach. IVIE working papers. 2005.
Zeraatpishe M. Investigating the effect of information and communication technology on the foreign trade of D - 8 member countries using the model of gravity. Master Thesis. Faculty of Economics, Allameh Tabatabai University. Tehran. Iran. 2015.
Journal of Sugar Beet
Volume 37, Issue 2
September 2022
Pages 247-262

Files

Share

How to cite

Statistics