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The Study of Effective Factors on Iran Share in World Carpet Market

One of the major economic issues in Iran is non-oil exports and its increased share in Iran economic development plans. Among these of great priority is hand woven carpet (taking into consideration serious fluctuation of oil revenues and the vast share of crude oil in the Iranian budgetary revenue). This study identifies the significant factors in increasing or at least retaining the share of Iran in the world carpet market. Using Panel Date and the Seemingly Unrelated Regression Model (compared to major competitors) this paper inspects the key parameters influencing the share of Iran in the world carpet market and infers from the results that there exists a reverse relation between the export price of the Iranian carpet and those of rival countries (India and Pakistan), instability of comparative export prices variable, foreign exchange rate and its volatility (except for India) and the Iranian share of hand-women carpet market.