African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6358

Full Length Research Paper

Evaluating the effect of aflatoxin food safety concerns on Iran’s pistachio trade with gravity model

Ashktorab, Niloofar* and Shahnoushi, Naser
Department  of  Agricultural  Economics,  College  of  Agriculture,  Ferdowsi  University  of  Mashhad,  Azadi  Sq.,  Mashhad,  Iran.
Email: [email protected]

  •  Accepted: 30 October 2013
  •  Published: 07 November 2013

Abstract

How food safety affects international trade is an important factor to be studied for low-income countries which continue to rely on agricultural exports. Iran, as the greatest pistachio exporter in the world, encounters a  serious problem of aflatoxin contamination. This food safety shocks affected Iran’s  income which has  caused a lot of damages to  the country’s economy. The paper estimates the effect of food safety concerns  on  Iran’s  pistachio  export  during  1997  to  2006.  Using  a  generalized  gravity  model,  we  find  that  food safety has significant effect on Iran’s pistachio export, beside other factors that have effect on  pistachio  trade.  Based on our analysis, food safety regulations have a greater effect in the long run as against the short run.  Programs aimed at  reducing aflatoxin contamination of pistachio is a key recommendation for policy makers.  The results of this study suggest that Iran pistachio growers would benefit from better marketing and  increased food safety regulations to maintain its export market share in the world

Key words:  pistachio, food safety, panel data, generalized gravity model, Iran.