Estimation of Saffron Export Development Index and Factors Affecting it Case Study: Khorasan Razavi

Iran's recent years of experience show that the economy's dependence on crude oil sales results in instability of export income. Saffron is one of the important export items of the agricultural and medicinal plants sector, which in recent years has despite the increase in the area under cultivation and production, the export has not grown in line with it. Khorasan Razavi province is one of the leading provinces in the production and trade of this product. This study aims to present the multidimensional index of export development and examine the factors affecting this index regarding the saffron product in Khorasan Razavi and its trading countries in the period of 2011-2020. The necessary statistics and information were collected from 24 exporting companies active in this field in Razavi Khorasan province and 14 exporting companies in Germany, Italy, India and China by completing a questionnaire. In order to investigate the foreign trade network of saffron and the factors affecting the export development index, a three-dimensional panel model was used. The export development index was measured using the sub-indices of export performance, export management and export strategy. The results showed that the company's history, company size, marketing strategies, export standards, research and development costs, government support policy index, and government foreign diplomacy, value of domestic products, brand development and marketing mixes are among the factors affecting the development index. It is the export of medicinal plants.