Investigating the Specialization Pattern of Iranian Saffron Exports in Destination Markets

Theories of international trade have emphasized specialization of countries and have considered this as a prerequisite to gain profit from trade. Iran has experienced a variety of forms of export of saffron as one of its important and valuable products to destination markets, which has made specialization in these markets doubtful. Therefore, this research study seeks to find out whether export of Iranian saffron in the world market and destination markets is moving towards specialization or not? In order to achieve this objective, the revealed comparative advantage index and the specialization pattern were investigated in the period of 2001-2018. The research findings have three main results. First, Iran's saffron exports have been associated with a de-specialization in the world market, and Spain, as Iran's most important export competitor, is on the paths to export specialization. Second, Iran has been specialized in saffron exports for the period 2001-2009 and has experienced a de-specialization in the 2010-2018 period. Third, Iran has been on the path of increasing specialization in only 15 percent of the destination markets (China, India, Hong Kong and Germany), and has a de-specialization in other markets. Because specialization in the destination market goes beyond identifying the demographic components of that market, it is suggested that long-term contracts be concluded with customers to adopt and implement production and marketing policies by further adapting the production and export of Iranian saffron to the culture of consumer markets.