Analyzing Iran's Export Market Potential, Gravity Model: Evidence from Date Market

This study aims at annual analysis of Iranian date export, using the gravity model and cross-section data for each year from 1994 to 2013. The estimated results of gravity equation show negative effects of geographical distance, landlocked location and positive effects of re-export, political, social and commercial ties on Iran’s date export. The date export relative prices and per capita GDP of partners show that most of Iran’s date export has been concentrated at low prices and to low per capita income countries. Moreover, the calculated date export potential indicates that, on average, Iran’s export has been close to its export potential in Central Asia, Africa and the Middle East, while it has exploited 76 percent of its export potential to European countries. More than half of the export potential to Germany, Italy, Denmark and Sweden has remained unexploited. The lifting of trade sanctions, adherence to international hygienic standards and investment in packaging industries are the most important suggestions to increase the share of Iran’s date in the world market.