Opportunities and challenges of trading Iranian food products to the Oman market

Document Type : Original

Authors

Department of Trade, Institute for Trade Studies and Research, Tehran, Iran.

Abstract

Since the development of Iran's trade is facing many internal and external bottlenecks, including limited access to export markets, this article seeks to answer these questions: how much of the export capacity of Iranian food products to the Oman market has not been used? What measures should be taken to develop the export to this market? In response to these questions, this article evaluated the export performance of Iran's food products and the prospect of import demand for food products in the Oman market in a 10-year period. The study results of the export performance of Iranian food products to the Oman market showed that there is a big gap between what is and what should be. Currently, in the value chain of food production, Iran is generally at the beginning of the chain, without having a higher added-value and often relies on food products that have a higher internal content, and is far from product diversity and differentiation, economies of scale, structural changes and endogenous competitive advantages in desirable food products. The study of the performance and pathology of the export of Iranian food products to the Oman market at the levels of the government, organizations and enterprises from the aspects of economic diplomacy, trade policy, institutional factors and infrastructures showed that the platforms, infrastructures and requirements for the development of the production and export of food products at the three levels of international-regional, government and Institutions are not suitable and the beneficiaries of production and trade still face high transaction costs in comparison with global and even regional competitors. Estimating Iran's export potential and analyzing the import demand outlook in the Oman market, the results showed that there is a high export capacity to the Oman market- in terms of number, variety, value and unused export capacity.

Keywords

Main Subjects


حوزة موضوعی: ایران و عمان

Scope: Iran & Oman

Arnon A, Spivak A, Weinblatt J. (1996). “The potential for trade between Israel, the Palestinians and Jordan”. The World Economy. 19(7): 113-134.
Christie E. (2002). “Potential trade in Southeast Europe: A gravity model approach”. The Vienna Institute for International Economic Studies. https://wiiw.ac.at/potential-trade-in-southeast-europe-a-gravity-model-approach-dlp-520.pdf. (Accessed on: 23/7/2020)
Drysdale P. (1967). Japanese-Australian Trade: an Approach to the Study of Bilateral Trade Flows. PhD Dissertation, Australian National University. https://openresearch-repository.anu.edu.au/handle/1885/7533. (Accessed on: 23/7/2020)
Finger JM, Kreinin ME. (1979). “A measure of export similarity and its possible uses”. Economics Journal. 89(356): 905-12.
Hosseini MA. (2019). “Geographical distribution of world food industry and its agglomeration determinants in selected countries and Iran”. Agricultural Economics and Development. 27(105): 205-236. [in Persian]
Hosseini MA, Norouzi B. (2020), “evaluation and estimation of Iran’s food industry the potentials of exports to the Russian market”. Journal of Central Eurasia Studies. 13(1): 23-46. [in Persian]
Krugman P. (1991). Geography and Trade. Cambridge (MA): MIT Press.
Linnemann H, van Beers C. (1995). “Measures of export-import similarity”. 21- Wltwints Chafteliches Matambalya, Francis A.S.T.
Lipsey RG. (1960). “The theory of customs unions: A general survey”. The Economic Journal. 70(279): 496-513.
Rahbari F, Malykhina E. (2024). “Exporting Iranian pharmaceutical products to Russia’s market: Potentials and Barriers”. Countries Studies. 2(4): 599-623. https://doi.org/10.22059/JCOUNTST.2024.377059.1131. [in Persian]
Sabbaq Kermani M, Hosseini MA. (2001), “Evaluation of Iran exportables agricultural products to regional organization and defining target markets”. Iranian Journal of Trade Studies (IJTS) Quarterly. 5(20): 95-124. [in Persian]
Sadeghi Yarandi S, Hosseini MA. (1999). “The potential for bilateral trade in agricultural products between iran and the countries of Central Asia and the Caucasus”. Iranian Journal of Trade Studies (IJTS) Quarterly. 3(11): 1-32. [in Persian]
Vollrath ThL, Johnston PV. (2001). “The changing structure of agricultural trade in North America, pre- and post- CUSTA/ NAFTA: What does it mean?”. AAEA/CAEA Poster Paper, (Annual Meeting). Chicago. http://www.ers.usda.gov/briefing/nafta/PDFFiles/Vollrath2001AAEAPoster.pdf. (Accessed on: 23/7/2020)