Investigating the Effect of Real Effective Exchange Rate on the Iranian Pistachio Export

Increase in the exchange rate may not always promote export of non-oil production and exports of various goods; rather they might have different reactions to the exchange rate. Hence, in this study we tried to examine the effect of real effective exchange rate on Iranian pistachio export. The required data were collected from statistical yearbook of Iran's foreign trade, statistical yearbook of the International Monetary Fund, United Nations Food and Agriculture Organization, and various publications of the central bank of Iran for the period of 1974-2008. The results showed that the real effective exchange rate, income of importer countries and domestic production have positive effects on export of pistachio but the effect of the domestic price index to the global pistachio export price index ratio was negative. Hence, it is recommended in order to produce more the crop as well as reduce the domestic price adopted employing advanced production& processing methods, extending the cultivation levels and improving the performance per hectare so that promote the ways of pistachio export.