Document Type : Original Article
Authors
1 Master of Science in Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Iran.
2 . Ph. D. Accounting, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Iran
3 Associate Professor Mazandaran University Faculty of Economics and Administrative Sciences. University of Mazandaran, Iran.
Abstract
The objective of this research is to examine the efficiency of Iran's foreign trade with MENA region countries using the gravity model of trade within the framework of a stochastic frontier function during the period 2010–2022. The results from estimating the gravity model indicate that Iran has a greater tendency to trade with wealthier and larger economies (such as Iraq, Kuwait, Syria, and the UAE). In contrast, geographical distance has a negative impact on trade flows, as trade volume decreases with increasing distance due to high transportation costs and logistical challenges. Additionally, Persian Gulf countries (such as Kuwait, the UAE, and Oman) have higher trade volumes with Iran, suggesting that geographical proximity not only facilitates transportation but also strengthens stronger economic ties. Furthermore, Iran's trade efficiency is higher with countries that share a land border with it. On the other hand, Iran has not been able to effectively leverage its maritime access with MENA region countries in this regard. Other findings reveal that domestic inefficiencies have a greater impact on Iran's foreign trade efficiency, with approximately 96.5% of the variations in Iran's trade efficiency attributable to domestic inefficiencies and mismanagement, while only 3.5% are random errors.
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