The effect of ad-valorem tariff liberalization on the revenue share of exporting food-industry factories(A case study of Iranian tomato-paste)

Due to the globalization, relieving from tariff and non-tariff barriers would increase the exporters’ shares in a competitive market. To study the effective factors particularly the ad-valorem tariff on the share of tomato-paste exporting factories, a panel data was used with 192 cross-sections including major exporting factories and importing countries in a gravity model during 2005-13. By Generalized Linear family estimations, the results showed the positive effect of productivity, number of documents to import, religion, being an Asian country and the negative effect of tariff and distance to the importing country. It is proposed to undertake WTO regulations, preferring Iranian braded packages and having more negotiations. In case of non-tariff factors, it is recommended to facilitate international banking systems by relieving the economic sanctions, concentrating on Asian markets in terms of comparative advantaged, updating equipment of factories and educating human resources.