Measuring the Export Efficiency of Iran’s Saffron

Export efficiency is the difference between actual exports and potential exports of exporting countries in destination markets, which nowadays measuring the efficiency has considerable importance in terms of export development and their competitiveness analysis. The export of saffron, as the most valuable agricultural product in the world, is of great importance to Iran, which has decreased in recent years. Therefore, its various dimensions need to be analyzed and evaluated. Due to the lack of a study on the efficiency of saffron exports, this study attempts to measure the export efficiency of Iran in 14 major saffron importers, which accounted for more than 90% of imports. To calculate the efficiency, the data of Iranian saffron exports to destination markets in the period of 2001-2017 have been estimated using a stochastic frontier gravity model. Efficiency results indicated that the efficiency of Iranian saffron exports in 2017 is equal to 0.45. The country analysis shows that Iran has the highest efficiency in Spain (0.93) and the United Arab Emirates (0.87), respectively, and has the lowest efficiency in Japan (0.07) and the United Kingdom (0.13), respectively. According to the results, the efficiency of exports in Asian markets has increased from 0.31 in 2001 to 0.41 in 2017. Considering the positive effect of the Asian regional variable and the negative role of geographical distance on Iranian saffron exports and also the change of the global network of saffron imports from Europe to Asia, it is suggested that Asian markets, which have higher competitive advantages for Iran, be considered by policymakers for saffron exports.